The real estate market is staring at a major crisis with promoters having a tough time in complying with MahaRERA deadline amid the outbreak of COVID-19.
The slowdown in the real estate sector is going to affect the buyers as delays are likely to creep in for the possession of their dream homes.
Around 300 ongoing construction projects in the city and outskirts could get delayed by varying time frames as against the stipulated deadlines, CREDAI office-bearers said. The actual number of projects is expected to be more considering the construction activities of non-CREDAI members.
Sunil Bedmutha, secretary of Aurangabad chapter president of Confederation of Real Estate Developers’ Associations of India (CREDAI), said the construction activities were almost stalled due to the current shut down. “The outbreak of COVID-19 was an unforeseen crisis which has caught the builders and promoters off guard. Besides slump in ongoing projects, the fresh booking inquires have been also plummeted in an unprecedented manner amid shut down due to COVID-19,” he said.
Bedmutha said the flow of capital in the real-estate sector has been almost stalled. “The payment from many buyers has been stuck due to the current shut down. As per the latest directive, the banks have been asked not to undertake loan-related work that also includes home-loan. The shut down as well as a dearth of funds is going to delay the ongoing projects,” he said.
The CREDAI has approached Maharashtra Real Estate Regulatory Authority (MahaRERA) with a plea to relax the existing rules in case of delayed possession of homes. The official regulator in the field of real-estate, MahaRERA can ask the promoter to pay the home buyer a monthly house rent and penalty as well for the delayed possession of flats.
“The COVID-19 is a natural calamity and therefore any delay in handing over the home to buyers is inevitable. MahaRERA authorities must show a lenient approach towards the promoters,” CREDAI office-bearers said.
Praveen Gunjkar, a buyer who has booked his dream home, was expected to get possession in June. “The builder had assured us that we can shift to our new home by the start of Monsoon. I now fear delayed possession considering the overall set of conditions. Such a delay would hamper my future planning including terminating rent-agreement with landlord and shifting of my child to a new school,” he said.
Meanwhile, the current slump in the real-estate may offer an opportunistic time for buyers to secure the property deals at a relatively lower cost. “The COVID-19 crisis will have an adverse impact on the real estate sector and shortfall of capital is imminent even if the current crisis subsides over a period of next few weeks. The builders and promoters are to be in dire need of money once the shut down is over and could offer concession and attractive schemes for buyers,” Jitendra Limbekar, a real-estate agent said.