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Problems Faced By Builders In Ghaziabad
Total Articles: 128
The situation of Indian real estate has been grim for over the last few months. Ghaziabad real estate business like any other realty sector is an extremely capital intensive business. Most builders of properties in Ghaziabad fund their project through the customer sales proceeds. Therefore developers mostly do their budgeting and calculations with the assumption keeping the average sales of Ghaziabad flats in mind. But now in the last few years the sales of flats in Ghaziabad have been slow. Although there have been a lot of enquiries but they have not translated into sale of Ghaziabad flats. With sales proceeds from properties in Ghaziabad not coming in as expected the developers are forced to borrow to finance their constructions. But these the interest costs mostly eat into profitability and they also force builder to increase the cost of Ghaziabad flats.
But, increase in prices of properties in Ghaziabad inturn leads to negative sentiment and demoralization of the property buyer and this then becomes a vicious circle where there are no sales. Furthermore, the price then gets compounded when construction costs rise with the increase in price of raw material and labour charges. In the end projects are stalled due to drying up of the finances. Both the builder as well as the buyer of flats in Ghaziabad become the sufferer. This scenario where costs are continuously up and sales are not reviving is worrying the entire country.
Also lack in transparency and delay in getting approvals has also troubled the builders who are keen to launch projects in the city. Recently the RBI had reduced rates by 25 bps which resulted in lowering the home loan rates. Many people were keen to invest in flats in Ghaziabad but this was not adequate to jumpstart the sales of properties in the city. Only when bold and decisive steps are taken will the real estate sector start to show positive growth. An introduction of policy reforms which will lead to improvisation in approval time frame, single window clearance, elimination of bureaucracy that leads to corruption will help the builder to improve delivery time-line and lowing the holding costs. But the builders should also respect the local rules and by-laws. Many a times it has been seen that builders openly flout rules and in the end the buyers are out open in lurch. So things need to be strengthen from both end if stakeholders want the real estate scenario to do better in future.
Makaan.com has a comprehensive list of real estate India for buying, selling and renting properties across the real estate sector in property India and flats in Ghaziabad.
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