real estate developers keeping quiet, now the prices of the essential has gone up, like transport, milk, and vegetables provisions all are gone up, the industry is really sluggish , there is no good orders for any industry, now the bribe and other things all are gone down, even electricity is going up, so living become difficult, in between the flat buying will come down, so unless the real estate developers reduce the profit no body will buy, the market will be come dull and those days are over
Writer is mixing up issues. What he calls are not hidden costs, these are open and one should only know the terminology before jumping in blindly. If you are using a wall and it is built on floor, how can disown the floor? One other hand, builders sell plots in proportion to total number of flats to reduce registration charges and then charge you developer charges for construction. So this is fooling the government.
The other side of delays and escalations need to be collectively fought by all the buyers as a common interest matter. There are legal recourse for these. If the agreement is clearly stating a handover date and if there is abnormal delay, then the buyer is entitled to reduction in total cost by way of interest accrued on earlier payments; instead, the developer tries to cancel the agreement and sell the half built flat to another buyer at a much higher cost based on market rates. These things need to be tackled legally and do not form part of hidden costs.
the catch is in the superbuilt up calcualtion. builder will tell it is 40 %. now from 1000 sq ft s.b area you deducy 40 % , then carpet area should be 600 sq ft. but you add 40 % to 600 sq ft , it will be 840 sq ft. so where has your 160 sq ft gone ? govt should force them to sale at measurable carpet area. let builder decide his cost. because there are constraints to builder also. he has to pay at every step to govt officers and ministers etc k.k.desai
I saw one property at kharghar in new mumbai by broker saying 980 sq ft and calculating overall cost of 46 lacs. when i met the marketing guy of that builder he told 970 sq ft costing of 42 lacs where as same property one year back they promise me at overall rate of 37 lakh.Surprisingly when i measured the area it was coming around 925 sq ft. So where and whom to trust.Therefore we should wait till there all of the black money is exhausted what they call it a liquidity crunch.The price will fell down drastically and will be then stabalised.
I think problem of delay in delivery is very common with all builders. I have booked a flat with the reputed builder Tata Housing in Bangalore and the flat was promised to be handed over to me within 6 months. I paid the entire money at time of booking . Now it is going to be 18 months,I am yet to get the possession which is likely in few days. In the mean time government has increased the guidence value and I have to pay Rs. 70,000/ extra. The loss due to delay in handing over in form of rent etc. is additional and now Tata Housing Bangalore is refusing to give any consideration for the delay. If builders like Tata Housing can ignore its commitments and customers has to suffer, what to talk of small builder who may occassionally get into financial difficulty. cklal
Last week in Pune(sub urban) I saw a property. They were quoting Rs 2750 per sq ft. This week they are quoting 2700. My friend booked an apartment for Rs 2200 last year and in the same area now apartments are available for RS 1700-1900 per square foot. One big builder company has the ad. "pehele possession bad me EMI" All this shows property prices are decreasing and will decrease.