Are dispute redressal councils the answer to the woes of a property buyer or investor?

Magicbricks.com moderator says: With real estate increasing at a rapid pace, buying or investing in a property is not anymore a distant dream. The industry has seen a steep rise in the number of real estate developers and builders who offer a range of properties including flats, multi-storeyed apartments and bungalows accompanied by a lot of other facilities at attractive rates. Most people find that they can get a property at affordable prices with a host of other amenities and look forward to the day when they would step into their dream home.

However, there are times, when a consumer is not delivered of what he is promised by the developer and faces a number of problems before he can settle into his new home.  it is in such instances that the consumer can approach councils such as the National Consumer Disputes Redressal Commission, which takes certain steps to safeguard the consumer’s interest. Do you think the Consumer Commission is the right forum for any consumer who may be facing certain differences with his builder or developer? Do you think government should establish more such councils or commissions to handle the problems faced by consumers investing in real estate?

Real estate booms in the Middle East

Magicbricks.com moderator says: Though oil still continues to drive the economic prosperity in the Middle East countries, however, the realization has set in that this non-renewable resource is not going to last for long. To counter it, they have started to look for other alternatives, among which, real estate happens to be a big one. Most of these countries including UAE, the Sultanate of Oman,Bahrain,Qatar,Saudi Arabia have all been busy gearing themselves as prime destinations for real estate investments by introducing laws that would allow foreigners and expatriates to purchase properties in these countries.

Infrastructural wonders such as broad roads and highways, magnificent hi-rises, sprawling hotels and malls, and specially designed real estate zones have further fuelled the demand for real estate in these countries. Besides this most of the government in these countries support new ventures and businesses by ensuring there's hardly any restriction in the form of extensive legal formalities, taxes or laws while undertaking or starting a new venture. With most of them already witnessing a rise in property prices by 25 to 30%, there's no guessing on how fast real estate is growing in this part of the world.

Share with us your thoughts and opinions on how do you think the real estate market will shape up in the Middle East countries? Do you think the property prices will continue growing at such a rate or will they come down after a while? Have you ever had the experience of buying a property in one of these countries and how has it been for you?

Were you promised free car parking space and later made to pay?

Magicbricks.com moderator says: With the property market taking a dramatic turn, people have no inhibitions in investing their hard earned money in real estate. They are ready to pay anything for their own space, a place, which can give them the feeling of their own priced possession, a place, which comes well equipped with all the modern amenities and features.

Cashing in on this need of the buyers, most builders these days are providing dedicated car parking spaces in the complex itself. Unlike earlier times, car parking has become a major issue as it has now gained the status of a necessity rather than of a luxury. It is become a norm for even the middle class families to own at least two cars. But the problem lies in finding enough parking space for the vehicles.

Many real estate developers charge extra for the parking space, while there are others who promise free parking space and then at the last moment back out on their commitment. One of our readers faces a similar dilemma who was allured with the promise of free parking space and at the time of agreement was asked to pay for it. Do you think the buyer should stand firm on his ground and refuse to give in or should he start his search for another property all over again? What would be your take on such a situation and what suggestions would you give to our reader.

Reader’s Query
"I had purchased a 2.5 bedroom flat in a residential complex measuring 1020 super built up. Car parking was mentioned as common amenities in the brochure but was amended in the agreement stating that it has to be purchased. The builder has circulated a circular stating that those who have not purchased car parking would not be allowed to enter the complex."

Vastu Shastra - Spilling its magic on real estate

Magicbricks.com moderator says: Ever wondered which direction should your bed face or in which direction your kitchen should be located? Whether your property should be north facing or south facing? Usually these are the questions which plague a person’s mind for whom the science of ‘Vastu Shastra’ is paramount for getting his or her home constructed. 

Vastu Shastra has gained a significant prominence in the recent past as the demand for purchasing vastu shastra compliant properties has been on a rise. More and more builders and developers make it a point to abide by the ‘Vastu Shastra’ rules while constructing real estate projects. This ancient form of art and science contains principles and practices based on the five elements of air, water, sky, earth and fire, which ensure that harmony exists between man and nature.

Though ‘Vastu Shastra’ is an age old practice, however its growing popularity in the recent years has propelled the real estate developers to adopt this form or else bear a negative impact in the absence of it. As one of the property developer points out that the value of a property may be less when compared to a ‘Vastu Shastra’ compliant property. In today’s day and age when science and technology rules, it comes as a surprise that this ancient form of art has become such an important part of real estate. We would like to know how you feel about the growing impact of ‘Vastu Shastra’ on Indian real estate. Share with us your views and opinions here.

What if someone makes a claim on your property?

Magicbricks.com moderator says: The Indian real estate market is expanding as never before and with real estate developers offering unique and competitive features, the buyer in most cases ends up in a win-win situation. However this isn’t the case with all as one of our reader’s had invested in a property on which another party is laying its claim as a grant land. The construction on that land has been stopped as the case has been taken up by the High Court. Now the question that arises is will the builder pay any compensation for the delay? And what steps should he take to save his property? Post your opinions and suggestions to help our reader. 

Ravi’s Query
“I have purchased a builder share flat in Kundalahalli, Bangalore. The property was registered in Jan 06, and the flat was supposed to be handed over by March 06, but till the date 15 Aug 07, it has not been handed over. Meanwhile, another party is claiming that the land was a grant land and it belongs to them. Now the construction has been stopped and the case has been taken up by the High Court. The builder has added a clause in the sale deed that any defect in title is to his account. I wonder if the builder will pay compensation for the delay and what steps should I take to protect my flat?"

Soaring rents in Mumbai leaving Manhattan behind.

Magicbricks.com Moderator says: Mumbai, the Financial Capital of India has always been a favorite destination for big business conglomerates, MNCs and financial institutions and various other companies which accommodate high profile office space in India. The increasing demand and limited supply of office spaces have made it the most expensive office market in the country leaving behind many European countries.

The average per sq ft cost in Nariman Point and Bandra Kurla Complex (BKC) is 1.5 times higher than Manhattan. In fact Nariman Point is positioned at the fifth spot in the list of the world’s top ten most expensive office centers. The Bandra - Kurla Complex and Parel rentals have gone up from Rs 200 to Rs 400 per sq ft per month in the last one year. Shortage of premium commercial space and increase in demand has caused a sharp increase in the city by 20-30% over the last quarter.

With such skyrocketing prices of office space, do you think Mumbai will continue to be the commercial hub of the country? Does this mean in the near future new townships such as Navi Mumbai will spearhead the commercial development? Do share with us your views and opinions.

Is it wise to trust new developers?

Magicbricks.com Moderator says: In the past few years the real estate industry has been growing by leaps and bounds and this in turn has led to the emergence of innumerable real estate developers throughout the country. Some of them have emerged as the stalwarts while others are still establishing their foothold in the industry. But irrespective of whether the player is small or big, everyone’s purpose is to offer the best deal to the customer and this is usually achieved through a gamut of additional benefits and offers. One of our readers wants to know if he can trust a new developer who is assuring to pay EMIs of a flat till occupant possession or does this entail too many risks? Help our reader by sharing with us your suggestions and opinions.

Reader’s Query
“I want to buy a flat (3 BHK in Delhi). I heard this radio advertisement where the developer promised to pay the EMIs of flats till occupant possession. This seems lucrative but the developer seems to be a new player in market. Is it wise to trust new developers like this? Or should I explore options available with big/reputed developers?”

A cut in stamp duty – Is it a blessing for the property buyer?

Magicbricks.com Moderator says: The new stamp duty cut announced by the government will provide quite a relief to the property buyers who have already been reeling under the burden of constantly increasing real estate prices and loan rate interests. The Delhi Government has decided to reduce the stamp duty on property prices by 2%. This was done with the intention to access funds from the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and to get the funds the states cannot exceed the stamp duty of more than 5%.

The stamp duty on properties registered in the name of men will now stand at 6% while it would be 4% for the women. This would mean substantial savings as the buyer can save Rs. 60,000 for a property worth Rs.30 lakh; a lakh for a property that is worth 50 lakh and likewise the savings will increase with the rise in property price.

Lately the Delhi government has rolled out quite a few significant policies in regard to the real estate industry. What are your views and opinions about the cut in stamp duty? Do you think this would act as a much needed breather when the real estate prices are at an all time high?

Should one invest in shares of a listed developer?

Magicbricks.com Moderator says: Investment in real estate has gained a lot of momentum in the last couple of years. Buying a plot or an apartment is the most common form of investment in real estate, however there is another breed of investment which is coming up and that pertains to investing in shares of a listed developer. One of our readers is also thinking of investing in shares; however he has concerns regarding the risks involved in this kind of an investment. In this case what advice or suggestion would you give to Anant?

Anant’s Query
“I want to invest in real estate, but do not wish to possess a plot/flat which I would have to manage. If I invest in shares of a listed developer would I get same returns as I would if I bought a flat/plot? How safe are such investments for small investors like me? How do I choose which is the best company to invest in.

Gurgaon circle rates to double – What impact will this have on property?

Magicbricks.com moderator says: The district administration of Gurgaon has decided to revise its circle rates. The rates are expected to be doubled since the present circle rate is almost one-fourth of the market rate. This step is being taken with an intention to curb under-valuation of residential and commercial properties.

Though the district administration plans to increase the circle rates by almost 50% to bring it to par with the present market rates, there are those who feel this attempt may still not be able to restrict black money in real estate. As one property dealer points out that,  “the property rate per square yard for DLF-I was increased to Rs.15,000 from Rs.12,000 per/sq yard last year and though it’s good to have the circle rate at par with the market price, we know how impossible it is to curb black money transations.”

Do you think it is really impossible to restrict black money transaction even when the circle rates are increased by 50%? What kind of an impact will this have on demand for property in Gurgaon? Tell us about your views and comments on this proposed hike in circle rates.