With Rise In the Might Of The Homebuyers, Real Estate Industry Changing For Good
The era of builders taking homebuyers for a ride seems to be getting over with a new avenues opening up for the buyers to take on the real estate firms and they even approaching such avenues proactively for the redressal of their problems. A number of real estate players have been forced to face insolvency proceedings in the last few years and many of them are likely to be wound up shortly. Not just insolvency proceedings, homebuyers are increasingly getting impatient with the false promises of the builders are approaching consumer courts. The buyers today are more aware of their rights and are not shy of using the means available at their disposal. They are joining hands and moving the courts together in many cases. This certainly does not bode well for the non-serious and fly-by night real estate companies.
Buyers are not willing to be fooled anymore with promises of assured returns on their investment in properties, something that builders are used to offering the customers so far. This would also bring paradigm change in the way finances are arranged by the builders.
If there was a builder’s lobby, in recent times we have seen the rise of homebuyers’ lobby also. This new lobby is wielding pressure not just on real estate companies but also on the government. They have now formed their own associations and are approaching the Prime Minister’s Office and various other government departments with their grouses and are being heard also. This is new kind of consumerism that the country had not seen before. They growing might can be ascertained from the fact that when they suggested a stress fund to kick start the stalled housing project in the country, the government did actually set up such a fund. The government not only gave in to their demands, but made the deal much sweeter by more than doubling the corpus of the fund than what was suggested by the homebuyers.
It is because of the activism of the buyers that even state RERA authorities seem to getting up from their slumber and have now started taking harsh steps to rein in errant builders. In some cases, land of the real estate companies have been confiscated by the authorities for not meeting the terms laid out in the RERA law. If the recent trend of steps taken by various RERA authorities is any indication, then certainly real estate companies will have t mend their ways in the times to come. Even the police and district authorities seem to be taking the right action against builders now.
All the recent changes in the system and the rise of activism and consumerism by the buyers certainly augers well for the real estate industry which is likely to get professional in the future.