Delhi RERA chief warns real estate developers against falling into investors' traps

Falling into investors' trap might impair cash flows and result in real estate projects being blocked, according to Anand Kumar, chairman of RERA, Delhi and Chandigarh.

Real estate developers should not fall into the trap of investors, since this could influence their cash flows and result in projects being postponed. Anand Kumar, chairman of the Real Estate Regulatory Authority for the National Capital Territory of Delhi and Chandigarh, stated that the CII Conference on Evolving Landscape of Indian Real Estate: Trends and Future Outlook' was conducted in the Capital.

Kumar stressed that if builders do not act against such investors, their financial cycle will be disturbed, resulting in postponed projects.

Several high-net-worth individuals buy multiple flats in the intention of making large profits, he said, adding that these investors cease paying their installments after paying roughly 30% of the entire cost of the housing units.

Real estate developers are therefore forced to cancel the flats, resulting in customer disputes, he claims.

If you (the builder) discover that someone is not paying on time, you should contact RERA first, before he does. Because RERA is intended for both allottees and developers, Kumar explained.

He stated that under RERA, developers can even revoke the assignment of apartments if someone fails to pay.

On the matter of unauthorized construction, he observed, "If we stop unauthorized development, we may build 5,000 dwellings on the same land as 1,000 houses. 

Sanjay Kulshrestha, chairman and managing director of HUDCO, stated that approximately 3% of the country's land contributes to 60% of GDP and that real estate developers should look into non-metro and smaller centers.

Regarding the PM Awas Yojana, he stated that the government announced in the interim budget 2024-25 that it will build 2 crore affordable housing over the next five years. State governments, such as Uttar Pradesh and Maharashtra, are creating townships. In Maharashtra, a highway connects Nagpur, Mumbai, and JNPT, linking 18 districts. From 15 hours, the transit time is reduced to 8 hours.

These 18 regions can supply commodities to ports in four to five hours, he added, and urged real estate developers to explore smaller untapped geographies to create affordable housing.

he told reporters.

Real estate is the second largest employment after agriculture, and it is one of the fastest expanding sectors, according to Neel C Raheja, Chairman of the CII National Committee on Real Estate and Housing and Group President of K Raheja Corp.

We are at the forefront of hiring, training, and providing better opportunities for them, he added.

Sriram Khattar, Vice Chairman and Managing Director of DLF Rental Business, stated that by 2023, India will have emerged as the global office.

Real estate is the second largest employment after agriculture and one of the fastest expanding sectors, according to Mr Neel C Raheja, Chairman of the CII National Committee on Real Estate and Housing and Group President of K Raheja Corp. "We are at the forefront of hiring, training, and providing better opportunities for them," he added. Mr Raheja stated that the real estate sector currently accounts for approximately 7.5% of GDP and is predicted to expand to 15.5% by 2047.

Mr Sriram Khattar, Vice Chairman & Managing Director, DLF Rental Business, stated that by 2023, India will have emerged as the world's office. In the office segment, markets had a record lead in 2023, with India's top seven sub-markets exceeding a transaction of 60 million square feet. A milestone has been reached. This strongly demonstrates the country's credentials as a global office. The demand came from global capability centers in manufacturing, engineering, financial services, and technology at a time when third-party tech outsourcing had a rather muted year, stated Mr Khattar, adding that sales in the residential and retail divisions were up in 2023. In 2023,

In 2023, India purchased larger flats priced above ₹1.5 crore, making it the fastest-selling category for the first time.

Source: Hindustan Times