Nearly 50 Percent Homes to Be Delivered in 2013 Delayed
Bangalore: People who are waiting to get possession of their homes in 2013 will be delayed due to limited fund and slow down in project approvals. Nearly 50 percent homes that make up of around half of 323,000 homes which were promised to be delivered in 2013 are running behind construction schedule, according to a new survey, reports Ravi Teja Sharma of Economic Times.
Besides, three out of four homes which are about to be delivered in 2014 are expected to be delayed further, according to a survey conducted by Liases Foras.
"There have always been delays, but it is a bigger concern today as the quantum of homes being built is much larger now," said Deepak Parekh, chairman of HDFC. In this context, DK Mittal, Secretary, Department of Financial Services stated that "Everyone's money is stuck. It is not only bad for homebuyers, but also for the economy," reports Economic Times.
The reason behind this delay is mainly due to lack of funds and delays in project approvals. However, other reasons are drop in home sales, passive primary market and banks are showing unwillingness to lend money to developers. Apart from these, agitation by farmers, labour shortage and legal issues are also fuelling the project delays.
Project delays have left over lakhs of home buyers in trouble amid soaring property prices and volatile economic condition. Vaibhav Gaggar, partner at law firm Gaggar & Associates said, "Individual homebuyers have the option of taking recourse to the law, but almost no one does so as it is a cumbersome process and may lead to further delays if the builder digs in his heels," reports ET.