Investors to take initiatives and undergo completion of stalled residential projects- Challenges faced

Investing in the property market can help people save up and secured the future for their loved ones. It is of utmost importance that one considers investing their hard-earned money into something fulfilling for a prosperous future. Local residents around emerging metropolitan cities who were content residing as tenants are now transitioning to become first-time property owners. This is encouraging as property developers are looking for strategies to cater to rising demands for affordable housing. The inclusion of governing bodies like RERA and tax reforms like GST have brought about a sense of purpose in the property market. 

Prestige Primrose Hills is an upcoming residential apartments in Kanakapura Road with 1/2/3 BHK Units. The project is going through RERA registration process and will be launched once approved. 

Prestige Primrose Hills

Challenges faced prior and after RERA and GST Implementation

If we go back 5-6 years, residents who were promised on set expectations were left questions as realtors weren’t delivering. This led to delay in project delivery which isn’t healthy for the market by any stretch in imagination. Realtors are required to abide by the norms as they are liable to hefty penalties in case of any misconduct. With all the strategies in place, property developers are still unable to work together with RERA authorities and provide the necessary funds to potential investors who are left waiting. This delay in compensation is transferring a heavy toll on RERA as cases registered in cities like Mumbai are far too many. In order to take things into their own hands, prospective residents are employing methods and completing stalled projects themselves. Lack of ownerships transfer, sale deeds attested and negligence in legal formalities can lead to projects being stalled or no progress since it’s conception. This has adversely affected the Indian property market in a major way as it results in mindsets being changed as far as FDI (Foreign Direct Investments) are concerned. Investors are now taking steps and working with professional consultants in order to complete the project as they have invested a significant amount of funds from their very pockets. If these respective stalled projects have enough cash flow and are delayed because of secondary reasons, working on delayed structures is a good idea that can be challenging at times. 

Challenges faced in self-completion of pending projects

One has to realize that property market investments are long-term in nature. Investing in options like the stock market and mutual funds require funds that are less priced. Investing your hard-earned money in residential properties would require effective analysis of property trends and allocation of surplus funds which is sure to grow, depending upon your choice of residence. In regards to self-complete stalled projects, there are promising challenges that come along the way. For instance, prospective residents wouldn’t have the expertise required to complete such structures. Architects and engineers who are otherwise present at the site offer premier construction services for a sustainable and durable lifestyle. In their absence, it becomes difficult for residents to devise plans for completing the project themselves. Also, hiring such agencies that cater to residential requirements like contractors and engineers can turn out to be expensive. Along with this, residents have to tackle complexities by the government and RERA authorities if they aren’t firm on legal grounds. Effective completion of the project also depends on the due nature of any residential project. Present cash flow, size of the land available, transfer of ownership over the past 5-10 years and details regarding its stage of delivery. 

Pre-requisites to consider for successful self-completion of projects

Before heading to the property site and completing the project yourselves with additional assistance, residents need to analyze the parameters that are required for effective property construction and development. For example, projects that are 90% completed should be considered by residents as an opportunity to develop and employ their own ideas. Potential investors should target properties that are small-scale in nature. Meaning, properties providing no more than 150-200 residential units is feasible for self-construction. The financial status of the project should be well protected. That is, the delay of the said project should be because of secondary aspects and not because of shortage of fiscal scarcity. 

Benefits of self-construction of stalled projects

If respective buyers and the developers have come to an agreement on regards to property construction, a combined effort can make things happen. Investors should make sure that the previous delay in project delivery is certainly not because of lack of fiscal assets. This can help them devise strategies and budgets for efficient property development. This is a win-win situation for both investors and realtors as the project which yielded nothing can now appreciate by about 30% based on the location and surrounding infrastructure development. Also, residents who have contributed funds can occupy spaces themselves and the rest could rent out the property to tenants for extended rental gains. 

To conclude, there are pros and cons to self-developing delayed residential projects. By employing creative strategies and effectively managing funds, investors can inch closer to their dream home much earlier than expected. Happy Investing!