HOLD IT! DON’T DROP IT! - www.sumangalampropmart.com

Jan. 22, 2011 - PRLog -- s your Noida apartment delayed? Is your apartment development stalled? Or has your developer put your flat on hold? Citing problems from building permits to slow pre-sales to weather conditions, Noida real estate developers have had a tough stretch in convincing pre-build apartment home purchasers that the sky is not falling on the development that they purchased in. Right now, however, Noida property market is seeing multiple apartment projects stall and put on hold and these delayed developments have put a further dent into the minds and fear of homebuyers. As the number of delayed projects on hold that are stalled by the developer rises, many pre-launch apartment homebuyers are demanding answers to why this is happening, when construction will start again, how they can possibly walk away and get their deposit back in addition to when the delay or hold will be lifted on construction.
Many questions, but unfortunately there haven’t been many answers to these important issues surrounding delayed developments and projects put on hold. “In most cases, poor pre-sales resulted in tougher times for builders to seek construction financing, and therefore the entire project was delayed or put on hold,” says a real estate consultant, adding, “In other cases, building permits have delayed the pre-sale grand opening or construction.”
Also affecting and delaying properties and putting projects on hold is the fact that developers are waiting for the market to pick up again in order to gain more momentum and pre-sales before proceeding. It’s a waiting game right now and unfortunately several Noida apartments by both fancied developers as well as little-known builders are on hold, delayed or stalled at the moment, some indefinitely. “Delay is a subjective word and when it comes to Noida projects, there are certainly many such developments at the moment,” says a realtor. “A delay basically is a result of lower than expected pre-sales, lower than normal homebuyer satisfaction, developer problems with financing, or finalising apartment residence architecture, design and master plans in addition to delays in trades and materials,” he adds.
Slow occupancy permits cause other delays once the apartments are completed and ready for move-in. “A delayed project does not mean it is cancelled or mean that the property developer or builder is looking to cancel the project,” he says. “The delay can happen at any time in the lifecycle of the project, including during pre-construction, during construction/building, design, and at completion.”
Experts say delays can be indefinite until the market changes and homebuyers start purchasing pre-build properties again. However, for the most part, the delay in a project is due to one or a known number of factors that are mitigated and corrected in order to proceed as planned. “A definitive timeline will be re-organised in order to accommodate for a later occupancy and move-in date,” says a developer on conditions of anonymity. “The Noida real estate development delays in apartment projects have been the subject of many news headlines during the property boom and its aftermath as most new pre-construction developments did not meet their deadlines caused by a backup in occupancy permits, tight labour market and delay in getting construction materials and interior designers for the finishing touches.”
Currently, there are many delayed projects within the city and those are mostly due to lender financing problems and poor pre-sales that have not gotten to the number that is expected for continued financing from lenders. “Pre-sale apartment homebuyers will have their deposits secured in trust and therefore, will remain there until the construction proceeds,” says the developer.
With an indefinite delay, however, may cause problems as the pre-launch homebuyers may not see their original deposits for months to years. The overall impact is any delays in development projects is a negative thing from the standpoint of the homebuyer, who expects and is looking forward to moving into their new home during a specific time period.
Any apartment project that is delayed also has negative consequences on the builder/developer, who must correct the problems and focus on completing the project. In many cases, a delay in a real estate project will cost the developer more money and time, and thus eating into his return on investment. As well, pre-sale homebuyers have their deposits locked in trust until something budges, either an announcement of cancellation or construction progress to completion at a later date.
To sum up, when a real estate development is put on hold, all sorts of red flags come up to the general public and prospective homebuyers as there is too much speculation happening in the headline news stories. No one’s denying that the down times in the real estate property market certainly affected most developers. But the problem with our developers, however, is no one openly declares if they have officially put on hold, or abandoned the project. With the result, hundreds of investors and homebuyers are left in the lurch. “As a project is placed on hold for many reasons, the developer has a choice of releasing the information he sees fit to make sure that pre-sale buyers do not freak out about the news,” says a real estate consultant. A drive around many Noida and Greater Noida neighbourhoods confirms the developers have other things on their minds than completing the projects and handing them over. Much like a delay, or even worse, a hold on a real estate development basically means that nothing is really happening until the problem(s) is/are resolved. Whether they are building permits, sales activity and numbers or construction financing, a project on hold basically means that the development is in limbo and can go either the cancellation route or be delayed indefinitely with pre-sale homebuyers deposits locked into their contracts for a long time. “Unlike some developments by small builders, the problem with several Omaxe and Unitech projects that are horribly behind schedule is that they have received most building permits,” says a Noida Authority official on conditions of anonymity. “These on hold and delayed projects may become the first Noida apartments to be built in over a decade.” Omaxe Twin Towers project in Sector-50 is one such unfortunate victim of the financial crisis that the developer is still trying to come out. Though the company hasn’t officially declared it as yet, we all know it has been delayed until further notice. Another problem with our developers is that if people do not purchase any homes, they still refuse to convert them into rental apartment buildings.

source: www.topfloor.in

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