Investment News

Should you invest in commercial or residential properties?

Should you invest in commercial or residential properties?

May 22, 2019 in Investment News

NEW DELHI: Should you invest in commercial or residential properties? Both commercial and residential properties have their pros and cons. Commercial properties are a little higher in cost as compared to residential properties but they yield higher rental returns. On the other hand, residential properties are bought primarily for end-use as well as long-term investment. So, should one buy a residential property or a commercial one?
“Commercial real estate has been gradually growing in terms of demand with supply just about keeping up; so price points have steadily moved upwards. Presently, growth in capital and rental values of commercial real estate is on a growth curve. Residential real estate has remained largely stagnant since the past few years – caused by the impact of regulatory changes,” says Niranjan Hiranandani, national president, NAREDCO.
Returns on Investment (ROI)
Residential properties are mostly bought for self-use. However, one can also generate income from residential property by leasing it out. Price appreciation of residential properties over a period of time is another factor that attracts investors.
Properties which can create steady income are typically office spaces, warehouses, retail, industrial and institutional real estate. Regular rent is a key factor that makes investors buy commercial property and price appreciation also remains high.
“Commercial properties are good investment opportunities to earn regular income as they offer high rental rates compared to residential properties. While residential properties, during an economic downturn, are much better than commercial properties, said Ravindra Pai, managing director, Century Real Estate.
However, rental income and price appreciation depends on many factors such as current market trends, location, social and physical infrastructure. These are deciding factors for both commercial and residential property to appreciate.
“The residential market has now begun to pick up, although it will take some time for price appreciation to happen. Whereas in commercial real estate, Grade A office properties have been yielding higher returns. The estimated overall return in residential properties is around 3-4% per year and for commercial properties it is 8-10%,” adds Pai.
Arrival of REITS
India witnessed the launch of its first Real Estate Investment Trust (REIT) by Blackstone and Embassy Group in March 2019. The success of this event led to fresh investment avenue for the country’s commercial real estate sector. It also gave retail investors an opportunity to invest in commercial properties.
JLL research indicates that 294 million sq ft (REITable asset from stock as on 2018 and includes Embassy Office Parks REIT) of office space stock would be eligible for REITs. This would translate to a potential investment of $35billion. This is certainly a big opportunity for Indian investors.
Growth of commercial real estate
Office properties in the right location and project attract quality corporate tenants and can, therefore, yield good rental returns over prolonged periods.
“The average rental yield of a commercial property falls in the range of 6%-10%, whereas the rental yield of a residential property is low in the range of 1.5% – 3.5%. Simultaneously, capital appreciation can also be more than satisfactory for the right office assets,” explains Anuj Puri, chairman, ANAROCK Property Consultants.
Due diligence
While investment is an opportunity it has its own set of risk involved. Hence, one needs to take a calculated step and perform due diligence before investing. You need to check the builder’s track record, location, past price trends, connectivity, job opportunities etc before investing in a commercial or residential property. Also, one needs to ensure that a property is RERA registered in case of an under-construction project.
Key markets
Some of the key markets for investing in both commercial and residential markets are Bengaluru, National Capital Region (NCR) and Mumbai Metropolitan Region (MMR). Growing job opportunities and multi-national companies taking up big land parcels in Indian cities are propelling growth of the commercial sector, not just in metros but tier 1, 2 and 3 cities. Residential market is also witnessing demand from buyers where connectivity is good and job hubs are located nearby.
“Traditionally, top metros including Delhi, Mumbai and Bengaluru, have been the favorite destinations for investors, a trend which has been apparent in the past decade. Metro cities, along with neighbouring areas have collectively ended up getting three-fourths of real estate investments over the past few years,” adds Hiranandani.
Investors must compare their options and price trends before investing either in commercial or residential property. A due diligence is a must with regard to price, location and property prospects before buying.

Sources: realty.economictimes.indiatimes.com

Brigade plans to invest Rs 4,000 crore for commercial realty

Brigade plans to invest Rs 4,000 crore for commercial realty

April 10, 2019 in Investment News

Bengaluru headquartered real estate firm, Brigade Enterprises, plans to invest Rs 4000 crore to develop commercial properties in South India by 2020. The firm is also looking to divest stake in the hospitality business.

Brigade Enterprises has chalked out plans to launch another 8.2 million sq. ft of office and retail space in cities such as Bengaluru and Chennai over the next three years. It already has a partnership with Singapore-based private equity firm, GIC Singapore.

“We have an indicative investment platform of Rs1500 crore but as and when there are opportunities that can go up too. We are targeting rental income of Rs 900 crore over the next four years from Rs 250 crore now,” said Atul Goyal, CFO, Brigade Group.

The platform has concluded land deals, two in Bengaluru and one Chennai. Together, both parties invested Rs 1000 crore in buying land parcel across the Southern cities. “With GIC, we are building 5.5 mn sq ft currently that is expected to be concluded by 2020,” he said.
GIC has stuck at least a dozen real estate transactions since 2007 and has been very aggressive in acquiring assets across residential, commercial and retail segments in the country. The sovereign wealth fund had invested $1.4 billion for 33% in DLF Ltd’s rental arm, creating one of the biggest commercial platforms in India’s real estate market. It also has exposure to Godrej Properties.

Additionally, Brigade Enterprises has also moved all its hotel assets into a separate unit to raise funds to fuel future strategy. It plans to increase the number of hotel rooms to 2,000 by 2022 from 1200 now. “We are looking to divest equity minimum of 25 per cent equity in the hotel business depending on investor appetite,” said Goyal.

The company currently has 18 mn sq ft in residential development and plans to launch an additional 9 million sq ft by next financial year. The company sold residential units aggregating to 0.78 million sq. ft. with a total value of Rs 446 crores sold in Q3 FY19 with average price realisation of Rs. 5,741 per sq. ft.
The net debt of the company as on 31st December 2018 stood at Rs 2833 crore.

Sources: realty.economictimes.indiatimes.com  

Withdraw OCS Or CCS Given To Incomplete Projects

Withdraw OCS Or CCS Given To Incomplete Projects

January 15, 2019 in Gurgaon Investment, Investment News, Real Estate News

As part of a landmark judgment, the Haryana Real Estate Regulatory Authority – Gurugram bench has asked the Town and Country Planning Department (DTCP), Haryana, to withdraw the Completion Certificate (CC), or Occupation Certificate (OC), issued to projects that are yet to complete the development.

The authority has also asked DTCP to initiate an inquiry as to how such certificates have been procured fraudulently.

The development is expected to have ramifications across other states and regions too as several developers had rushed to secure these completion and occupation certificates ahead of the commencement of RERA in a bid to escape its jurisdiction.

It has observed many such cases where part CC, or OC, has already been issued even though the development work is not yet complete, which should be the criteria for granting these approvals.

“A fraud has been committed to secure these OCs and CCs even though the projects are yet to be completed. We have issued show-cause notices to such builders and are reaching out to vigilance for an enquiry into the matter,” KK Khandelwal, chairman, Haryana Real Estate Regulatory Authority, told ET.

The regulator has also asked DTCP to take disciplinary action against officers whose connivance builders have secured such clearances.

The authority has provided a month’s time to promoters of such projects to apply for registration, failing which penal proceedings will be initiated against them.

According to experts, the authority has taken cognizance of the trouble faced by homebuyers of such incomplete projects and builders procuring OC/CC even without completing the projects.

“This order would have wider implications benefitting homebuyers, especially since many states have diluted their real estate rules that favour builders. Such developers will be forced to comply with the registration requirement or face penalty up to 10% of the project cost as provided under the RERA,” said Abhay Upadhyay, president of pan-India homebuyers’ body Forum for People’s Collective Efforts (FPCE).

According to RERA, the development scope of the project includes external work such as roads, landscaping, water supply, sewerage and drainage, electricity supply transformer, sub-station, solid-waste management and any other work as may be provided in local laws.

Internal development work means roads, footpaths, water supply, parks, tree planting, street lighting, provision for community buildings, water conservation, energy management, fire protection and safety requirements, social infrastructure such as educational, health and other public amenities as per sanctioned plans.

Upadhyay reckons that in many cases homebuyers face problems because they are being forced to take possession without the promised infrastructure in place. The CC, or OC, can only be granted after the completion of such development work as observed by the authority.

The authority has also ruled that mere applying for Completion Certificate, or Occupation Certificate, will not exempt any real estate project from falling under the ambit of the Real Estate (Regulation & Development) Act, 2016 (RERA).

It has made it clear that the OC, or CC, granted prior to the commencement of the act will be the only condition to get an exemption from RERA registration of the project.

“…mere filing of the application cannot be treated as completion of the project/occupation of the project,” the order said.

However, it has further stated that homebuyers of these exempted projects can still approach the authority for any structural defect in the project within five years of filing the complaint. The authority has also ruled that all real estate projects will be covered for land title defect liability.

Sources: realty.economictimes.indiatimes.com

OYO appoints Rohit Kapoor as head of its New Real Estate Business

OYO appoints Rohit Kapoor as head of its New Real Estate Business

December 29, 2018 in Investment News, Real Estate News

Hospitality chain OYO Hotels & Homes has named former Max Healthcare senior executive Rohit Kapoor as the head of its new real estate business, the Gurgaon-headquartered company announced on Tuesday.

The appointment, effective December 6, will see Kapoor spearhead new real estate business opportunities for the company, which will include exploring new domains and categories, and other strategic initiatives, according to an official statement.
“While we continue to grow our hospitality business, new real estate initiatives such as this will play a key role in driving the next wave of growth at OYO,” Ritesh Agarwal, OYO Group Chief Executive, stated in the company-issued release.

Kapoor, who will report to Agarwal, will be responsible for growing OYO’s business in India as well as across international markets, through strategic partnerships and investment opportunities, the statement added.
“From one property in Gurgaon, to now over 12,000 franchised and leased assets in over seven countries and 500-plus cities, from budget hotels to its more recent foray into resorts business, and most recently its bold entry into the housing business, makes one thing really clear, this place is the perfect combination of ambition and ability,” Kapoor said.

Prior to joining OYO, Kapoor was the executive director and a member of the board at Max Healthcare, a joint venture between Max India and Life Healthcare, South Africa.

“With Rohit taking on this mantle, we are confident that he will be able to help OYO Hotels & Homes set new benchmarks in the accommodations business and evaluate new opportunities in the real estate industry,” Agarwal said.
According to the press statement, prior to his stint at Max Healthcare, Kapoor, an Indian School of Business alum, spent close to a decade with McKinsey & Company as a consultant.

SoftBank-backed OYO has emerged as one of the largest hospitality chains in the country but has announced its entry into a number of new categories, apart from the budget hotel segment. Last month, it launched OYO Living, the long-stay managed home rentals space.

Kapoor’s appointment follows the company’s announcement earlier this month, naming former IndiGo President Aditya Ghosh as its chief executive for India and South Asia.
Additionally, the company, which now counts China as a home market, alongside India, has brought on board several well-known executives from leading consumer internet ventures, to lead its operations in the world’s second-largest economy.

Last week, ET was the first to report that OYO had hired Wilson Li as its chief financial officer for its operations in the country. Prior to joining OYO, Li used to be the finance and operations head at a listed car rental major Car Inc.

Separately, it has also brought on board Google and Uber executive Jia Zou as its technology head and Tony Liang, formerly with Wanda, SF Express and Dianping, as its chief human resources officer.

In an interview with ET, Agarwal had said that OYO, which was valued at $5.5 billion post its last ending round, currently manages 1,80,000 rooms across 4,000 leased and franchised properties in China. The six-year-old company manages 1,49,000 rooms in India and South Asia.

Sources: ealty.economictimes.indiatimes.com

Office leasing dips 46% q-o-q in NCR in Q3 2018: Report

Office leasing dips 46% q-o-q in NCR in Q3 2018: Report

November 24, 2018 in Investment News, Real Estate News

The National Capital Region (NCR) witnessed an overall leasing of 1.72 million sq ft, a decline of 46% quarter-on-quarter, according to a recent report by Colliers International.

The gross absorption was recorded at 7.65 million sq ft in the first nine months of 2018, the company said in a media release.

“Despite a quarterly decline in leasing across NCR, the year-to-date numbers indicate notable growth of 31% at 7.6 million sq ft. The last quarter will gain momentum with the year expected to close at 9.7 million sq ft against 7.9 million sq ft in 2017, said Sanjay Chatrath, executive director (NCR), Colliers International India.

The office market in Delhi recorded gross absorption of 0.14 million sq ft in Q3 2018, representing a quarterly contraction of 6.7%. Over the last three quarters, the continued decline in demand can be attributed to a lack of Grade A space in major micro markets such as the CBD and Aerocity.

In Gurugram, due to slower decision making on the part of occupiers, gross absorption declined 60% quarter-on-quarter and 50% year-on-year. With most occupiers expanding operations in Gurugram, it noted leasing activity of 0.80 million sq ft in the said quarter.

Noida recorded gross absorption of 0.78 million sq ft in Q3 2018. “Compared to the same period last year, leasing has increased by 30% as the average deal size expanded three times to 70,874 sq ft, the report said.

“The engineering and manufacturing sector was the leading occupier in Noida with 38.5% of gross absorption followed by technology occupiers on 32.1%, and the banking, financial services and insurance sector (BFSI) on 23.5%,” said Chatrath.

Sources: realty.economictimes.indiatimes.com

Essentials To Know About the Property Transfer

Essentials To Know About the Property Transfer

November 19, 2018 in Investment News, Real Estate News

Nothing can match the joy of buying a Property! We all take months to finalize a property, and then invest our hard-earned money and life savings in buying a Home.

But that’s not where your Home buying journey ends. Most of us are unaware of the post-purchase paperwork that we would need to complete.

Managing the countless legal paperwork which one requires to do for buying a Home is an extremely lengthy process. One such category of legal documents is the Property tax record. Indian Home buyers are unaware about changing the records in the property records when a property changes hands. Although the Municipal authorities maintain the tax record, if the change in ownership is not done, then tax receipts are generated in the previous owner’s name.

Here are two significant aspects of the property transfer process:

Changing Name in Property Tax document
For changing the name on the property tax document, you need to submit a few documents to the Commissioner of Revenue, the post which the verification is done in 25 to 30 days. Following are the documents that you would require:
1. Attested copy of the sale transaction deed
2. Receipt of tax last paid
3. Duly filled the application form with signatures
4. No Objection Certificate from the associated housing society

Mutation of property

This is a process which helps in transferring the title ownership from the property Owner to the buyer after the property is purchased. In common language, it is also known as ‘ dakhil kharji’. It helps the government charge taxes to the new Owner of the property.

All you need to do is submit an application to the Tehsildar with a non-judicial stamp on it. The most essential document is the No Objection Certificate (NOC) for purchase case, and an affidavit for the inherited case.

Sources: blog.magicbricks.com

Dos And Don’ts For NRIs Investing In Indian Realty

Dos And Don’ts For NRIs Investing In Indian Realty

October 24, 2018 in Investment News, NRI News

Besides exercising necessary due diligence, NRIs also need to adhere to certain specific laws and regulations, while buying, selling, or renting out real estate in India

The realty market in India has always seen considerable interest from the Indian diaspora, as an investment avenue. With developers constantly striving to woo non-resident Indians (NRIs), they can choose from a variety of options, in the residential and commercial segments.

“The realty market is in the midst of a slowdown and this is the right time to invest,” says Kalpesh Patel, head – international sales, Rustomjee Group. “Developers are offering good deals and benefits such as flexible payment plans, subvention schemes, etc. Although demand still exists at the local level, buyers are playing a wait-and-watch game. NRIs must take optimum advantage of this situation,” suggests Patel.

Buying and Selling

An NRI can either come to the country and buy or sell a property or give a Power of Attorney (POA) to a relative and get the transaction done, without coming to India. NRIs can also avail of home loans in India. The documents for the loan may vary, according to the country in which the NRI is settled. Generally, the term of the loan will be 10 to 15 years, while the amount that the NRI is eligible for, will vary based on age, income, education, etc. To finance the property’s purchase, it is advisable to use a non-resident external (NRE) account, as this will help the NRI to take back the capital invested in the property when they resell the property.

Investing for the Future

“For NRIs who are on the verge of retiring and planning to settle in India, this is the right time to invest,” advises Ashwinder Raj Singh, CEO – residential services, JLL India. “Social infrastructure in most of the large Indian cities has improved a lot while civic infrastructure is also being ramped up. As more hospitals, schools and shopping malls come up and connectivity improves, it will give rise to better standards of living. This will directly enrich the quality of life after retirement,” Singh adds.

Once the primary residence is secured, NRIs can also use surplus funds, to invest in a second apartment and use it to generate rental income. However, they must be aware of all the bye-laws and regulations that apply to NRI investors, especially with respect to taxes, as rental income is taxable in India. It is also taxable in other nations, except in cases where a treaty exists between the two involved countries, with regards to double taxation, he points out.

“NRI investors should avoid projects by unknown developers. Numerous buyers have fallen into difficulty, by putting their funds in projects that lacked mandatory clearances and fell short of even the minimum standards of quality. Unless an NRI plans to visit India and evaluate projects, s/he should opt only for reputed developers. In all cases, NRIs should strictly verify points, such as the track record and brand visibility of the developer, the social and civic infrastructure available in the location, the amenities in the project and the timelines for possession, in the case of under-construction projects,” cautions Singh.

A project that is targeted towards NRIs, is no different from other offerings in the market. A property should be evaluated, purely on the basis of its location and amenities on offer, the legal validity of its title and the developer’s brand image.

Sources: housing.com

India Office Leasing Tops 32 Million sq.ft. in First Three Quarters Of 2018

India Office Leasing Tops 32 Million sq.ft. in First Three Quarters Of 2018

October 13, 2018 in Investment News, Real Estate News

With sustained interest from occupiers led by the technology sector, commercial leasing activity across India has crossed 32 million sq ft, up 7% from a year ago, across India’s top 8 property markets in the first three quarters of 2018.

Office space absorption during the September quarter rose 3% from a year ago and 12% sequentially to 10.9 million sq.ft.with Mumbai, Bengaluru, Hyderabad and NCR accounting for almost 80% of the leasing activity, said showed data from property consultant CBRE South Asia.

Occupiers from the technology sector, with a share of 48% of total leasing, drove office space take-up in the country during the third quarter. Occupiers from the engineering and manufacturing sector with 14% share were followed by co-working and business centre operators that absorbed 11% of the total leased space.

“India’s economic growth continued on its upward trajectory and real estate services along with financial and professional services sector contributed to this economic surge as it grew from 5% in the previous quarter to 6.5% during the review period. Sectors such as BFSI, engineering & manufacturing, and agile/ co-working/business centres are likely to account for a larger share in leasing activity going forward,” said Anshuman Magazine, Chairman, India and South East Asia, CBRE.

Interestingly, India had witnessed 42 million sq.ft.office space absorption in 2017, while the first nine months of 2017 had seen absorption of 30.1 million sq ft. Even as several mid-to-large-sized deals were reported in Bangalore, Hyderabad, Pune and Gurgaon, more than 30% of the transaction activity was reported in SEZ space.

Similar to the previous quarters, office space take-up was dominated by small- and medium-sized transactions. Mid-sized transactions ranging between 10,000 sq.ft.and 50,000 sq.ft.accounted for around 45% of the transaction activity, while small-sized transactions less than 10,000 sq.ft.had a 42% share.

The share of large-sized deals with over 1 lakh sq.ft. size increased to 7% during the quarter. The agile workspace sector continued to witness a strong growth momentum, with global and Indian majors expanding their footprint in tier 1 and tier 2 cities. Co-working and business operators leased about 3.3 million sq.ft.space in the first three quarters of the year, almost doubling their take-up reported in the first three quarters of 2017. Other sectors such as Banking, Financial Services and Insurance (BFSI) with 7% share also contributed to the increase in leasing activity.

“The trend of agile spaces is rising during a booming start-up era, even as corporate are drawing up fluid expansion and occupation plans. Occupiers are also expected to keep strong checks on space utilization ratios and innovation in workplace strategies while expanding their footprint and implementing their expansion plans. Also, SEZs are expected to account for a larger share of the upcoming supply over the next few quarters. Given the approaching sunset date, we anticipate an increase in demand for SEZ s space,” said Ram Chandnani, Managing Director, Advisory & Transaction Services, India, CBRE South Asia.

Pre-leasing activity rose in during the quarter, largely in Bangalore and Hyderabad, driven primarily by tech and BFSI corporates. Overall, the country witnessed more than 12 million sq.ft.of pre-commitment transactions in mostly under construction assets in the first three quarters of the year, the report said.

On the other hand, supply addition during the quarter dipped marginally by 1% from a year ago to 7.1 million sq ft. Bangalore and Kochi accounted for 60% of the quarterly supply addition, followed by Mumbai and Hyderabad. Except for Pune, Kolkata and Kochi, all cities reported a dip in development completions on a quarterly basis. Slippages were reported in cities such as NCR, Mumbai and Hyderabad.

Sources: economictimes.indiatimes.com

Supreme Court Construction ban may take toll on Development

Supreme Court Construction ban may take toll on Development

September 28, 2018 in Investment News

The development could grind to a halt in Maharashtra, Madhya Pradesh, Uttarakhand, Chandigarh and elsewhere following a Supreme Court ban on construction in parts of the country, delaying deliveries and hurting property companies and allied industries besides putting people out of work. The real estate industry said it’s being punished for state inaction over solid waste management. “It will choke supply, and impact home seekers. Effectively, home buyers will suffer just because some state governments have not formally notified the policy,” said Niranjan Hiranandani, national president of lobby group National Real Estate Development Council (Naredco).  “The intention behind the order is good from a long-term perspective, but a blanket ban stopping all construction will have a negative impact on housing.”  The SC has banned construction in several states and union territories because they haven’t put in place rules on solid waste management. 

The biggest impact is seen on Maharashtra, home to the high-value property markets of Mumbai and Pune, although the state has prepared a policy on the matter and may, therefore, be able to get relief on this score, developers said.
“The overall annual real estate industry size in India is close to Rs 10 lakh crore, of which close to Rs 1.5 lakh crore to Rs 2 lakh crore is contributed by Maharashtra,” said Pankaj Kapoor, MD, Liases Foras Real Estate Rating & Research. “Over 1,000 allied industries across major sectors such as banking, cement, steel, sanitary, tiles and electrical equipment will be impacted severely if the states do not manage to get this stay vacated soon.”The decision will also have a bearing on the recovering economy and the job market, he said.
Investors seemed to be optimistic, however, as real estate companies mostly shrugged off the news on Monday. Godrej Properties ended up 1.7% at Rs 698.10, HDIL gained 5.5% to Rs 34.55, and Oberoi Realty ended up 3% at Rs 454.95. Indiabulls Real Estate’s shares ended down 3.1% at Rs 149.25.
“The policy for solid waste management is already in place in Maharashtra, even though the same had not been submitted to the concerned authorities,” said Kotak Institutional Equities in a report. If a stay is given in the coming weeks, the impact of the ban won’t be material, analysts said.
“They (Maharashtra) are going to apply for a stay of this order as they are saying they already have a solid waste management policy in place,” said an analyst at a Mumbai-based brokerage. “If Supreme Court gives a stay, there will be no impact. If they don’t get a stay, then they will have to wait for the October 9 hearing.”
Hiranandani said it would have been better if the court had penalised the states and barred new construction while allowing ongoing projects to be completed.According to the court, the states and union territories had not framed any policy under the 2016 Solid Waste Management Rules put into effect by the environment ministry in April 2016.
Experts are hopeful that the matter will be resolved soon, with the concerned state administrations doing what is necessary and the court allowing construction to resume.
Sources: economictimes.indiatimes.com
Stuck in Selecting the Right Builder? Check these 6 Simple Steps.

Stuck in Selecting the Right Builder? Check these 6 Simple Steps.

September 22, 2018 in Investment News

Selecting the right builder is half the work done while buying a property. However, buyers often tend to overlook this factor as budget and location top of their checklist.

However, unless one is a seasoned investor, it is quite easy to fall for the glossy brochures, sweet-sales talks, and snazzy model projects. This is because we often don’t ask the right questions. Can this builder deliver what I want? Has he completed his past projects on time? Does he build a quality product?

To assist you in buying, we have made a simple guide that can help you select the right builder.

 

  1. Find a builder that matches your preferences:

There are builders who specialize in affordable while some are known for their luxurious abodes. Determining the builders that offer projects that are within your budget can help you make the most of your property deal.

Also, figure out how much area you need. Create a budget based on these needs, and search for builders who make in your budget.

 

  1. Search for a builder with the right experience:

Search for builders who have experience in the property type you are looking for. Always remember that different builders have different strengths. Choose yours accordingly!

How to find one? It’s simple.

  • Check if the projects by the builder are listed with the real estate regulatory authority. Just log in to your respective state’s RERA website and check the list of approved projects.
  • You can also look for ISO-certification, which is usually displayed on builder websites.
  • Check if the project has any ratings such as CRISIL or CARE for added credibility.
  • Another measure of a builder’s reputation is an association with known real Estates bodies like the Confederation of Real Estate Developers Association of India (CREDAI) and the Builder Association of India (BAI). Members of these groups are liable to reply to their association in case of any disputes or complaints.

 

  1. Background and reputation check:

Check for builder reviews and completed projects on popular real estate forums. Additionally, you can also post your queries there.

The suggestions and opinions of your friends and relatives should also be considered.

Once you are comfortable with all these aspects, you must ask the builder for the sanctioned plan of the project that you are considering. It is recommended that you get this plan and other documents checked by a lawyer before you go ahead and sign on the dotted lines.

 

  1. Do your homework:

Get off your couch and visit some of the past projects of the builder. It will give you get a fair idea of the construction quality.

 

  1. Pick a builder who makes your life easier:

Always select builders that provide services beyond the project’s completion. For instance, a builder should maintain the project for a few years after completion and then transfer the maintenance to the society elected by the residents.

Also, in case you want to sell the project or put it up for rent, the builder should help you connect with potential buyers and tenants.

 

  1. Grading system for builders:

In the real estate sector, renowned builders are often termed as ‘A-grade.’ However, this is an unofficial grading structure. While these grades do serve as a tool for buyers, it should not be the sole criteria impacting your decision.

Instead, you can check builder ratings in ICRA, an Independent Credit Ratings Agency to get a fair idea.

Keep these six points in mind, and you will find the right builder in no time. It is essential to go that extra mile to ensure that you do not fall into the trap of builders who indulge in unfair business practices.

Sources: roofandfloor.com

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