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Completing projects on time is key to success in real estate market today
Financial Express  |  October 17, 2019

Real estate, like any other sector or industry, has elements which can be seen as fundamental for the survival and growth of the industry. Out of all the fundamentals of property development— land acquisition, feasibility assessment, dealing with authorities, etc. — the most vital one for all stakeholders is delivery. It is incredibly important for the developer to be able to finish a project and hand it over as promised to the customers.

 

Project completion is the key to success for any real estate developer as any developer is only as good as his previous track record. Any real estate developer must have a good track record of completing projects on time for the end users to be able to trust them. This trust from the end-users is the core of the relationship between homebuyers and developers. The trust between a developer and homebuyer is nurtured through an honest transmission of information, transparency, and most importantly through on-time delivery of projects. A transparent business operation and open communication with customers is the best strategy for developers in the post-RERA era. Needless to say, the Act has made homebuyers aware and emboldened of their rights in the real estate market.

 

For a long time, developers have had the upper hand in the development process. However, now that we find ourselves in the midst of an economic slowdown with plenty of unsold residential inventory, customers have the upper hand in the decision making process. In the midst of the slowdown, these customers are also extra cautious with their expendable income. All of this leads to picky end-users with more options to choose from and less money to spare. Obviously, in these circumstances, the customers will gravitate towards the developers with a good track record of consistently delivering their projects on time.

 

The situation of before— where homebuyers would consider 6 months to 1 year after the promised delivery date as ‘grace time’ for the developers and yet some developers would still delay updates on delivery— has no place in the current environment. Property buyers have been dealing with unscrupulous realty players for a long time and their tolerance for ambiguity is now down to zero.

 

Honest and transparent developers with a good history of customer satisfaction can and will succeed in the real estate industry, irrespective of the economic climate. And the developers who keep customers hanging for delivery through false promises will be weeded out in the current climate of accountability in the real estate sector. With their reputation being at stake, the real estate segment must deliver not only punctually but also responsibly.