Project Delays Cause Anxiety Among Home Buyers

Alternatively, for the home buyers, the wait to get over the possession continues. For instance, home buyers who booked a flat way back in 2009, was assured that the project will be ready by January 2011, which was further postponed to deliver by January 2012 and now again has been delayed till June 2013.

According to Samantak Das, director - research and advisory services, Knight Frank India, a real estate research firm, “The delays are certainly impacting actual end-users who are finding it difficult to cope with financial pressures in the current marker scenario. It is always thus advisable to purchase in a ready to move in complex, if not buying for the investment purpose,” reports DNA.

Moreover, developers are also facing catch 22 situation as caught between high interest rate and increasing input costs and also an issue raised to lower project prices, which they have maintain to hold their operating margins upto 30-35 percent.

“The assets being developed by realtors are proving unproductive which is why we are seeing high debt burden on the real estate companies. It’s a very inefficient scenario and a highly speculative one moving towards fall, making it look like the market is tipping off,” said Kapoor.