The real estate demand has reached around 1.35 billion square feet by 2020 in India. This is said to be up from around 900 million square feet currently. Out of the total numbers around 85% will be for the residential properties in India.
According to the reports, the sale of residential properties have slowed down due to low demands by customers at the current rates. This is leading to an inventory overhang is metropolitan and other major cities. Due to this slowdown, the builders have increased the discounts and are offering attractive offers so that there is some improvement that is seen in the condition of residential properties in India. However, the developers as well as the real estate sector needs to do something very differently to achieve success in this sector.
There has been a change in the real estate model and this will change more often and continuously and at a more rapid speed. However, the developers need to find the ways that these changing scenario can be a profitable one for them as well as the buyers. The builders are not able to understand this changing scenario and how should they cope-up with these changes. Once they get a hand on experience about these changing scenarios, definitely, there is no looking back for the residential properties in India.
Traditionally the charges that were attributable to the real estate firm was in managing approvals, land acquisition and agglomeration. However, now people are constructing sustainable, concrete business and value creating industries around very good process managed real estate along with very good execution skills. These definitely are the ways one can be successful in this changing scenario of the real estate in India and with this the developers need to understand and cater to the demands to the buyers so that they do not hesitate in buying their dream home. Thus, the real estate firms needs to upgrade themselves with the changing environment and reach new heights.
There will be financial protection for the home buyers whose projects do not complete on time. Any delay in the construction will provide benefits to the buyers. The buyers are allowed to claim for tax benefits of Rs 2 lakhs after possession if they invest in any under-construction building and it does not complete within 3 years. However, there will be a reduction of 30,000 if the builder delays the construction beyond the limit and thus they will have to pay higher interest. Also, the first-time buyers have to pay additional rent if they are buying homes for self-use.