Under-Construction Projects in Pune- Everything you Must Know

If you’ve long been cherishing the dream of buying a flat, the right opportunity is certainly on the threshold. Lately, buying a house has become easier as banks are reducing interest rates and making it easier for the middle-class to buy houses. In cities like Pune, you are spoilt for choice when it comes to new residential projects. There is no dearth of under-construction projects in Pune and so also ready possession properties in this city.

Deciding to buy a ready-possession flat is easy since you are aware of what you are buying but what adds to the dilemma are the apprehensions that are inherently linked to under-construction homes.

Here are a few important things a home buyer must consider before investing in under-construction projects in Pune

• Is the property RERA registered?

A home buyer should always opt for projects registered with the Real Estate Regulatory Authority (RERA), which was aimed at bringing transparency in real estate deals. It is worth noting that the model Act and the apex court judgment giving home buyers equal rights with the other creditors have made the under-construction house attractive. The central Act also covers things such as starting from the launch of the projects and making developers accountable for post-sales issues.

• Builder’s Reputation

The biggest risk in buying in upcoming projects or under-construction projects in Pune is a delay in completion. Before you buy a property, it is advisable to check the builder’s reputation. There have been cases of stalled projects where the builder is not financially sound.

A home buyer should avoid developers that got into trouble with other projects. Also, avoid builders embroiled in NCLT cases, if there are multiple consumer complaints against them. Furthermore, a buyer should find for how long the builder has been in business, and keep in mind that chances of delay are higher in bigger projects. It is, thus, imperative to do a detailed background check of the developer before investing in an under-construction project.

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• Builder-buyer agreement 

It is crucial for homebuyers to thoroughly read the papers of the builder-buyer agreement and ensure that the completion time of the project is mentioned in no uncertain terms. Plus, a buyer should verify whether the builder will adequately compensate the buyer in case of a delay in the completion of the project. You must look closely for the clause pertaining to delivery or possession date. Some agreements do not mention an exact date, as instructed by RERA.

Buyers should aim to invest in a property that is already 40-50 percent complete and shows visible construction progress.

• Changes in the building plan

Before investing in a project, read the fine print carefully, especially about the provision regarding the change in the building plan. RERA guidelines clearly state that any alteration can only be undertaken with a buyer’s consent. If changes have to be made to either the design or the layout of the property, the approval of two-thirds of the buyers in the project must be obtained.

• Bank Loans

For those planning to buy an under-construction property on loan, it is always advisable to choose bank-approved projects. Here, banks evaluate the developer and the project before sanctioning the loan. In an approved project, lenders will ensure the project is completed and the realtor doesn’t default. Also, approved projects may subsequently be disapproved for new buyers if there is a substantial delay or construction is not per the approved plans or a serious court case is filed against the realtors.

Check here - Benefits of ready possession homes in Pune

Benefits of Buying Under-Construction Projects in Pune

• An under-construction property does not hurt a buyer’s pocket since payment is done in a staggered manner.
• It usually yields a higher return on investment due to an extended window period between the buying stage and delivery timeline. If you sell the property closer to possession, you stand a good chance of earning a healthy appreciation on your capital investment.
• Any property with an Occupation Certificate as of 1 May 2017, is mandated to be registered under their State’ RERA. Under-construction properties, therefore, will necessarily come under the ambit of RERA and are liable to comply with fair trade practices. Buyers can avail information regarding these properties on their respective State’s RERA website and even seek speedy grievance redressed by the Appellate Tribunal formed under RERA.

However, there are certain key risk areas that homebuyers must keep in mind when booking an under-construction project in Pune.

Cause of Concern

Higher Risk:

There have been cases when the builder has failed to deliver on time or in some severe cases, failed to deliver at all due to various reasons such as funding crunch, rise in the cost of construction materials, and increase in lending rates, among others.

The discrepancy in The Final Product Layout/ Features:

This is the most common issue with the buyer not getting the promised product at the time of possession. Usual incongruities are lesser usable areas than promised changed layout and deficient amenities.

Whether you are looking at 2 BHK under construction flats in Pune or premium ones, it is essential to keep the above-said pointers in mind when taking the plunge. All the best!