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RegisterHomeowners are gearing up to complete their flats which have remained unfinished since a long time now. People from all walks of life have turned into amateur developers and are trying to complete the remaining work in cases where the actual developer has gone bust. There are numerous people who are going through the same situation and they have now become desperate to complete the work on the property where they have spent lakhs of rupees. There are thousands of projects across the country which is facing the problem of non-completion leading the homeowners to suffer the most.
An analysis conducted on approx. 11,000 home builders by research firm LiasesForas in February, has revealed that developers on average have to repay twice as much in debt each year as the income they generate.The property prices in India’s biggest cities are declining, in Mumbai home values have sunk 11% last year following a 5% decline in 2017.
The homeowner-developer relationship
Homeowners have now become eager to complete the pending or delayed real estate projects all by themselves. With a number of developers becoming bankrupt, it has become difficult for them to complete the projects due to an ongoing fund crunch.
It was found that the fault mainly lied with the developers as they were not able to evaluate the situation and ended up making a bad investment decision. Taking up of small term loans for long term investment also affected their funds and the regulatory changes also contributed to the misery.
The only hope that lies now with the homeowners is the fact that after completion of the project, the property would gain due to the accelerating conditions of the real estate market. A number of buyers have invested their life savings in real estate with the expectation to gain the perfect space, and now they will have to take additional loans to complete them.
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