Sound Agreement Between Buyer & Builder

After all the running around you have finally made up your mind and chosen your dream home. Do you think it is the end of your worries and it’s just a matter of time and you’ll soon sign the ‘sales agreement’ to become a proud home owner?

In reality post selection procedure is more crucial than the selection procedure. Are you wondering why and how? This is the stage where one actually has to pay and get away with his life savings.

Cosmic India

Rather than reading and analyzing the impact of each and every clause in the agreement or consulting a property lawyer, most of the time buyers simply sign it. They usually think it’s too long or they simply ignore it as the language is too technical or at times are overwhelmed about owning a house, and hence, fall in the trap. Developers take advantage of buyers’ ignorance and draft agreements which are highly developed based.

Here is a list of checkpoints that a buyer must keep a check before signing the sales agreement with the developer:

Firstly a sales agreement is a legal document which lists the terms and conditions of the transaction. These are agreed upon by the parties involved and bind the parties to fulfil their part of the commitment.

Most of the contracts have a clause stating that the given plans are tentative and therefore, there can be alterations in the final product. Also, the final price of the house is adjusted accordingly. There should always be a mention of the permissible extent of such changes.

Usually the builders sell on super built up area which includes the actual area of the house along with an unaccountable addition for common spaces. One should be careful and should make the developer include the details of carpet area and super area in the agreement. This also gives the buyer an account of the extra charges demanded with respect to alterations in the plans at a later stage.

Details of all the charges starting from the basic cost of the house to all the extra charges the buyer has to bear should be clearly mentioned. All the levied charges like utility charges, maintenance fees, club house membership charges, parking charges should be included in the agreement. There have been cases especially in Mumbai where developers have sold the parking to external parties even when as per the contract they belong to a resident of the society.

Another critical and must do point is registering the sales agreement to avoid litigation at a later stage. Being a legal document it helps in case of a fraud and creates a public record of your property. In case of any discrepancy a buyer should always go to the consumer court as they favor buyers. Also, buyers facing similar problems should collectively work on the issue to build up pressure on the developer and other concerned parties. Consumer forums and other social networking mediums are also strong in today’s time.

In the end, with the absence of any regulation defining real estate practices in India, it is a buyer’s duty to check the agreement before signing it. It is advisable to consult a lawyer and demand alterations in the agreement if required before formally signing it. It’s always best to do a check on builder’s track record. Above all, a sales agreement should always be registered.

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Delhi metro and its influence on real estate

Delhi Metro Railways, generally referred to as “Metro” was launched in the year 2002 to fulfill the demand of traffic congestion in the city. Metro although being conceptualized as a social profit compared to being an economic one, has clad to be vastly to blame for the economic process of the region and therefore the town especially. Over the last 5-7 years, the land costs round the Metro railway areas have raised as developers flocked in to speculate in those areas, and patrons notice it a profitable possibility due to easy accessibility and development in those areas. 

Delhi Metro influence on real estate

Metro has a direct influence on the real estate business in NCR. Within the time of the land boom, localities wherever metro is operational (or close to start), tend to appreciate better that different localities. These localities are conjointly expertise a lower cost correction throughout the slowdown period. Major infrastructure projects are launched keeping proximity to Metro as the sole deciding factor. The “Metro Walk mall” close to Rithala station and “Delhi Hatt” at Kohat district are cases in point. Retail shopping areas have conjointly come back up at Netaji Subhash Place and Indralok stations. This is often simply the beginning and one would see metro become the attentiveness for major infrastructure projects in the town.

Ever since metro’s enlargement plans for NCR was declared, folks that were earlier unwilling to maneuver out of the city have started staring at NCR as a viable living possibility. The comfort of an air-conditioned, pollution free ride and therefore the associated time & price advantage are the main factor behind this alteration in heart.

Today, proximity to metro has become one in all the foremost necessary decisive factors for a property seeker. One can see this impact within the real estate prices, for instance localities like Dilshand Garden, Sastri Nagar, Mansarover, Indralok, Rohini, Pitam Pura, & Rithala wherever the metro has been useful, saw an appreciation of 18% – 40% per annum in capital values from 2008 - mid 2012. These areas were conjointly comparatively unaffected throughout the slowdown from August 2008 forwards. A similar trend is visible in Uttam Nagar, Dwarka, Janakpuri, Tilak Nagar, Vikaspuri, Patel Nagar, Subhash Nagar and Karol Bagh.

With metro extending its wings to Noida, Ghaziabad, Gurgaon, and Faridabad, property seekers would be suggested to stay this at the middle stage of their property buying method. If past data is cipher, the areas within 1 km radius of metro ought to step up upwards of 15% compared to different areas within the neighborhood. This positive impact would be felt in localities on all the metro routes.

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What is in store for Real Estate in 2013?

Anyone who has had a look into this sector over the past decade will predict almost the same as what we say here because real estate has grown in leaps and bounds when comes to costs, purchases, sales and prices. The trend has not withered over time and has in fact become stronger.

Real Estate Business

For the coming year 2013, we expect mostly the same. There are hopes of growth in the real estate sector, mainly due to the government’s positive approach towards reforms and moderation of interest rates, experts say.

Land acquisition and real estate regulation bills are expected to be passed during the year, while there is a likelihood of the Reserve Bank of India (RBI) bringing down the interest rates.  The passage of FDI in multi-brand retail by the government shows its seriousness on introducing reforms. RBI can be expected to lower interest rates in the coming months which will benefit developers as well as consumers.

 Residential prices, which have been increasing over the past few years, are likely to witness subdued growth in most markets in a short to medium term till the pressures of unsold inventory are eased out.

 Finance minister P Chidambaram had recently asked the developers to sell their unsold inventory at a lower price.  Besides, infrastructure initiatives such as Greater Noida metro rail network and proposed metro link in north-west Bangalore are likely to have a positive impact on the residential market of these cities.

 FDI in multi-brand retail will also boost the demand for commercial real estate.  Apart from the international brands, several domestic brands are also exploring opportunities to increase their foot prints across the country.  According to Jones Lang LaSalle (JLL), major cities like Mumbai, NCR-Delhi, Bangalore, Chennai, Pune, Hyderabad and Kolkata, will see the addition of close to 9.5 million sq ft of mall space in 2013.

 The primary reason is that a sizable amount of supply that was expected to reach completion in 2012 has been being pushed to 2013. While Mumbai, NCR-Delhi, Bangalore and Chennai will together contribute 70 per cent of the total retail space absorption, cities like Pune, Hyderabad and Kolkata will account for the remaining 30 per cent.

 Further, the ongoing policy reforms are expected to provide some cushion to corporates who are likely to execute their expansion plans in near future.  Demand for officespace is expected to be broad-based and not restricted to IT-ITeS and banking sectors. However, even as leasing activity performs relatively well, rentals are expected to remain stable.

 According to JLL, cities including Mumbai, Bangalore, Delhi NCR, Chennai, Hyderabad and Pune will witness commercial corporate property transactions focused on their own occupancy needs.

On the whole, we can expect 2013 to bring a larger-than-usual number of NRI investors into the commercial space arena. This is because NRIs are currently enthused by the prevailing exchange rate benefits and the fact that commercial real estate capital values are still 15-25 per cent under their 2007-08 peak levels.

So, if you are to make some investments this year then get real estate on your list cause this is better than gold, it’s a gold mine. Prices are set to rise and so are the benefits to the early birds.

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Need for Office Space soar to 7 million sqft in Apr-Jun qtr

Need for Office Space soar to 7 million sqft in Apr-Jun qtr

As per the quarterly report by CBRE, a global property firm, metro cities like Mumbai, Bangalore, Delhi NCR have absorbed over 75% of the total space leased in the second quarter. 

Office Space

As per a recent survey, In spite of the recent downfall in the real estate market for large office spaces, almost 7 million sq ft space was rented during the second quarter of the year as against the 5.4 million sq ft from January to March. Also, almost 9 million sq ft space was added throughout the quarter from these metro cities, making it a nearly 96% of the space added in the whole quantum. Most of these spaces were the delayed developments especially in the city of Mumbai from previous quarters.

However, improvement is subjected to the global economic environment and government policies in India. Also, with the slowdown in large office requirements from giant global companies, the office market might witness a fall in absorption this year. The IT segment may also lose its charm as the tax linked incentives are not yet clear with the occupiers.

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