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It's every homebuyer's worst nightmare to face the long halt delay in possession of their dream house. Because of this, the homebuyer suffers not only economically but also mentally. Therefore, in this blog, PropertyAngel will discuss what you as a homebuyer can do if your real estate project is delayed. Firstly, it's important to understand the reasons behind delayed projects. The most common reasons include poor project management, lack of funds, delays in obtaining permits and approvals, and legal disputes. Regardless of the reason, homebuyers have the right to take legal action to protect their interests.  The Legal Route: RERA, NCLT, and CPA
The Real Estate Regulation and Development Act (RERA), passed in 2016, protects homebuyers in case of delayed projects. RERA aims to regulate the real estate sector and ensure timely completion of projects, and it applies to all states and union territories in India. It mentions a few of the most important roles of a real estate regulator, which are:
NCLT Also, homebuyers can file a complaint with the National Company Law Tribunal (NCLT). The NCLT has the power to appoint an administrator to take control of the project and ensure its timely completion. Additionally, the NCLT can order the developer to compensate the homebuyers for the delay. CPA Apart from RERA and NCLT, homebuyers can take legal action under the Consumer Protection Act (CPA) as well. The CPA gives consumers the right to seek compensation for any deficiency in services or goods. If a developer fails to deliver a home within the promised time frame, homebuyers can file a complaint with the appropriate consumer court. Should You Sell the Property? This is the first question that comes to mind for a homebuyer who is stuck in a delayed project. Because you're mentally and financially stressed due to such a big delay, the best option may be to sell the property. But it isn't as easy as it looks.
All these factors make finding a new buyer nearly impossible, as no one would be willing to purchase a real estate property with so many issues and problems. Should You Continue To Pay for EMIs? This is a common question, as you might be confused about whether you should continue paying your EMIs for the home loan or stop. There is also concern that if you stop paying your home loan EMIs, your credit score will suffer, and your financial credibility in the market will suffer. However, according to some experts, homebuyers shouldn't stop paying their EMIs even if the project is delayed. The main reason for this is that financial institutions from which homebuyers may have availed their home loan may drag them to court and, in addition, charge homebuyers interest on the EMI amounts deferred by them. Final Words If you're stuck in a delayed project, your first option is to go the legal route and file a consumer complaint under RERA, NCLT, or CPA. If you're considering selling your house, it will be tough for unfavourable reasons. According to some experts, as a homebuyer, you shouldn't stop paying your EMIs. About PropertyAngel PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
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India's real estate market has been on a growth trajectory for a while now, with increased demand for property due to the country's growing population and economy. This has increased the number of real estate options available for buyers. Before investing in real estate, it's important to understand the different types of properties available in India.  Types of Real Estate Property in India
Residential Real Estate Residential properties are the most popular real estate investment in India. Because of its low entry cost and easy financing options, this investment is a good place to start for aspiring real estate investors. The common types of residential properties include: Single Family Homes Homes built on single lots with no shared walls are called single-family homes or SFHs. Such houses have a garage either detached or attached. The value of such residential properties often increases over time. Also, single-family homes located in a rapidly growing area typically have a high resale value. Condominiums A condominium or Condo is a single unit within a larger building or community. These are most popular in high-density, urban areas with many shops and restaurants. Since the condo owners aren't responsible for the exterior of the unit, they need to make only fewer repairs. As such, investors mostly don't have to worry about landscaping the unit or fixing the roof. Townhouses A townhouse is a hybrid term between a condominium and a single-family home. They often have multiple floors, one or two shared walls, and a small garden space. They are larger than condos but smaller than single-family homes. Generally, these kinds of residential properties are less expensive to buy than single-family or multifamily properties. Cooperatives In cooperatives or co-ops, you own a share of a building. In other words, everyone using the structure jointly owns it. Co-op owners must pay maintenance fees. Therefore, the Homeowners Association or HOA expenses are lower than the condos. Multi Family Homes Multi Family homes consist of two or more units and can be either row house-style, multiple floors, or range from duplex to a four-plex. Along with this includes garden apartments, mid-rise apartments, and high-rise apartments. The only difference between a condo and a multifamily home is that you cannot buy the latter individually. Also, buying a multifamily home with a single mortgage can result in less paperwork and headaches than buying two single-family homes. Commercial Real Estate Commercial properties are best for making investments, including hospitality projects, industrial space, retails, etc. These properties are specifically designed for investors who want to improve their local communities. Usually, these types of properties have a higher potential for cash flow. CRE investors can benefit from longer leases and lower vacancy rates than other forms of real estate. Office Space Office buildings, like multifamily properties, are also designed as low, mid, and high rise depending on their size. Office buildings are categorized into:
Industrial space also differs in size based on its specific use:
These properties are sub-categorised into:
Hotel and Lodging Hotels are categorized into:
These properties usually include hospitals, doctor's offices, clinics, or senior care facilities. Unique Purpose In real estate, unique purpose property includes publicly owned properties like places of worship, libraries, schools, parks, and cemeteries. Vacant land Vacant land, or raw land, is an underdeveloped or unoccupied area. The cost of such land varies directly depending on the land's size, location, and the earth's zoning use. Raw land purchases often provide steady cash flow and come with several exit strategies. The vacant land typically comprises timberland, working farms, ranches, orchards, or any new construction site. Usually, developers acquire such vacant lands and combine them with other properties by assembling and rezoning them to increase the density and value of the property. About PropertyAngel PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore. In India, many people dream of buying a home. However, one must also consider the low air quality index (AQI), which reaches severe levels due to high pollution, especially in metro cities. The country's reliance on fossil fuels and lack of environmental regulations have contributed to this problem, with air quality levels often exceeding safe limits. However, the real estate industry believes that green buildings aren't only a solution but will ultimately be the only real solution for countries like India.  What Are Green Buildings?
Green buildings are designed and constructed using environmentally friendly technologies and processes. The goal of green buildings is to minimise environmental impact throughout their entire life cycle, from construction to operation and maintenance. According to Anarock data, green buildings can reduce energy consumption by 20-30%, water consumption by 30-50%, and significantly reduce waste generation through extensive recycling. Apart from the obvious benefits to the ecosystem and biodiversity, the use of green building practices leads to lower electricity consumption, better health and overall well-being, and enhanced productivity in the case of commercial buildings. How Are Green Buildings Different From Regular Buildings? A green building and a conventional building may not look very different from the outside. However, the parameters used to award green certifications are the best way to differentiate between green and regular buildings. It includes:
Pradeep Aggarwal, Founder and Chairman, of Signature Global, says, "Green buildings substantially increase savings through 32% energy savings, 52% water savings, and 53% less embodied energy in materials. The use of toxin-free materials and the design of green buildings are such that energy consumption gets reduced without compromising the occupant's comfort. These buildings will have better ventilation, natural light, and lower indoor pollution." The Scenario of Green Buildings in India The US Green Building Council's annual report ranked India third in the world for Leadership in Energy and Environmental Design (LEED) of green buildings in 2021, with 146 certified buildings and spaces totaling nearly 2.8 million gross square metres. China came in first with more than 14 million gross square mt., while Canada certified more than 3.2 million gross square mt. LEED is the most well-known green building rating system in the world. LEED in India is supervised by Green Business Certification Inc. (GBCI), which aims to accelerate the implementation of green buildings throughout India. There are several programs and agencies across different countries that define, categorise, and certify green buildings, such as LEED (the US), BREEAM (the UK), CASBEF (Japan), and DGNB (Germany). In India, Indian Green Building Council (IGBC) and Green Rating for Integrated Habitat Assessment (GRIHA) are at the forefront of promoting green building programs and certifications. Is it Financially Beneficial to Buy a Flat in a Green Building? In India, the price has always been an important consideration for first-time homebuyers; many do so even today. According to Anarock's data, green homes cost at least 10-15% more, depending on various amenities and factors. Therefore, green housing still remains an elitist concept and option in India rather than a necessity. The price differences between certified green homes and non-green homes are significant for budget-conscious first-time homebuyers. However, this additional cost is an investment toward future savings. Green homes save between 30-40% on energy and water bills. According to real estate experts, the higher costs associated with developing green buildings are a major disadvantage for developers of affordable and mid-range projects, as these costs are pushed onto buyers. That's why the current demand for green housing comes more from financially settled buyers instead of first-time homebuyers. The Reality of Green Buildings in India In January-October 2022, India recorded four silver-certified buildings, 49 gold-certified buildings, and 82 platinum-certified buildings across the top seven leading markets. The Ministry of Environment, Forest and Climate Change (MoEFCC), Government of India, fast-tracks environmental clearance for green building projects that have been pre-certified and/or provisionally certified by IGBC. Some state governments like Punjab, Haryana, Maharashtra, Uttar Pradesh, and West Bengal offer additional floor area ratios. While other state governments offer discounts on property tax, provide subsidies on fixed capital investment, etc. About PropertyAngel PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore. |
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