Amid rising inflation, property prices are also increasing rapidly. In such a situation, further increase in their prices can be seen in the coming festive season. Especially amid the increasing demand for ready-to-move housing units and skyrocketing sales of luxury properties, the demand for under-construction properties in Gautam Buddha Nagar and Ghaziabad region has again increased.

There is no doubt that underconstruction projects are affordable compared to ready-to-move-in, but uncertainties regarding its completion, certainty of possession, poor quality, lack of monitoring have kept home buyers away from this segment. Are. So what has happened now is that underconstruction projects are again becoming an attractive deal for home buyers. According to market experts, budget, trust, infrastructure development, flexi payment plan, construction techniques and strict monitoring of projects i.e. regulatory action. Due to all this the demand for underconstruction projects is increasing.

Reasons for increasing demand for underconstruction projects

Real Estate Regulation: Facing major issues of poor fund management and diversion of funds by promoters, RERA has put in place stringent rules towards management of project related bank accounts and construction progress in all types of real estate projects.
Project Collection Account: U.P. RERA has given instructions to open project collection accounts for all projects and home buyers and promoters have been instructed to deposit all the money related to the construction and development of the project only in the project collection account. This will ensure that the funds being deposited for the project are utilized for the construction of the project. In order to make this information available to the home buyers, RERA has also instructed the promoters to compulsorily give the details of the project collection account in the advertisements/promotional materials made for the home buyers and in all types of correspondence etc. Which home buyers can verify through RERA portal.

QPR Update: Quarterly progress report of their projects to promoters in RERA - Q.P.R. Arrangements have been made to fill it. Filling QPR provides information to RERA, home buyers and other stakeholders of the project about the actual progress of construction and development of the project. On this basis, it can be found out how much the promoter has constructed as compared to the set targets or whether the promoter is ahead or behind his set targets. The information received from QPR can prove to be decisive for home buyers.
Government Policies: The Central and State Governments are working together to formulate policies to protect the interests of home buyers and complete the stalled housing projects.

SWAMIH FUND: SWAMIH Fund, set up by the Central Government dedicated to the rehabilitation of financially remunerative housing projects, has turned around the status of many stalled projects in Noida and Greater Noida. After funds are distributed to such stuck projects, not only the existing home buyers are now expected to get their units, but new home buyers are also showing eagerness. Under the policy, more than a dozen stalled housing projects have been revived and many others are also expected to get a new lease of life.

Amitabh Kant Committee: The state government has been successful in its efforts to restart construction work and register units in incomplete projects in Noida, Greater Noida, Ghaziabad and Yamuna Expressway areas. The competent development authorities have accepted the recommendations of the Amitabh Kant Committee on incomplete housing projects, paving the way for the rehabilitation of the projects and opening the way for registration of units for occupied home buyers.

Budget and Trust: The spectacular realty boom of 2010-14 due to entry of new real estate institutions has now become a mature real estate sector in 2023-24 as major promoters are now launching projects with limited units and towers. The ticket size of the units is certainly high, but the assurance of timely delivery is playing a major role. Promoters with excellent track records have no dearth of buyers for newly launched under-construction properties as their costs are better than ready-to-move-in inventory.

To help home buyers invest with easy payment plans, promoters are bringing such plans in the market so that they do not have to face the double burden of EMI along with rent. Generally, the situation is similar with those who upgrade their property because they are already paying EMI for their existing house. Small project size, construction in less time using new technology and EMI after possession has increased the confidence of customers. New construction techniques and large-scale infrastructure development are taking place in Gautam Buddha Nagar and Ghaziabad. Due to this also the demand in this segment is increasing.

What do experts say

CREDAI Western UP Secretary Dinesh Gupta says that availability of funds in a real estate project and its proper maintenance plays a big role in completing the construction. With the advent of RERA Act, confidence among home buyers has increased for under-construction projects because arrangements have been made for maintenance and monitoring of the funds received for the project and standards for completion of construction have been set. Apart from this, the guidelines of the authority for construction and possession are being followed by the financial institutions and the promoters themselves.

Nirala World CMD Suresh Garg says that by adopting advanced building construction techniques, we have completed the next phase of Nirala Estate ahead of time. Considering the quality and speed of construction, we had received an overwhelming response from buyers, resulting in good sales numbers and a lot of enthusiasm towards the company for its upcoming residential project in Greater Noida West.

According to Himanshu Garg, Director, RG Group, the government policies have been quite encouraging for promoters who really want to regain the confidence of home buyers. Many promoters have complied with the demand of the authority and soon we will start new phases and projects. We have seen an extraordinary demand for the size in homes at RG Luxury Homes as it allows buyers to buy 3 BHK within the budget which is a sign of confidence regarding under construction properties due to the revised government policies and strict regulations. Accordingly, we are planning our upcoming project.

Eros Group Director Avneesh says that since the beginning we have been following the official guidelines and as a mark of confidence we have completed our last phase of Sampoornam. Furthermore, we received an amazing response to our newly launched Sampoornam 3 considering its size and cost. Apart from location and facilities, our latest construction technology and low height structure helps us to complete the project before or on time. As soon as we got the RERA registration number, we crossed the sales figure of Rs 200 crore in just 2 days. The company had invested Rs 400 crore in 5 towers of Phase 3 and 318 units out of total 726 will be developed in Phase 3.