Real Estate Projects delay or not delivering on time, it is become a common thing of builder which is facing by buyers and due to delay, sentiments of buyers are hurting. Real Estate Projects delay or no on time deliver is the main reason why buyers and investors are not ready to invest in real estate and can say that now real estate is not the first choice of investment. Still many good names are trying to maintain their reputation but due to covid 19 pandemic, they are also now in trouble and they will also deliver their project little bit late. In real estate, there are few reasons that why Real Estate Projects delay or not delivered on Time.
- Government Policies
- Natural Disaster or GOD Act
- Negative Rumors
- Misuse of Funds by Builder
- Builder’s Wrong (Fraud/ Scam) Intention
- Low Cash Flow in Builder Firm
- Court Case
Indian is a democratic nation/ country. In every 5 years, new central government and state government has formed and deformed. Every party have their own vision, mission & strategy. So according to their plan or strategy they make 5 years, 10 years, 15 years or lifetime plans or schemes. If same party will make government for more 5 years, then plan or strategy will work for 10 yrs or more. But the party would not make it possible or different party will make government then it will depend on ruling party that they want on going schemes or strategy or they want to change. If they will change then as per strategy, sectors like real estate, manufacturing, FMCG, etc will face the challenges. Same with real estate, due to time to time changes or updates, builder will face the issue or in result Real Estate Projects delay and customers are facing problem.
Natural Disaster or Act of GOD
Natural Disaster or God Act, like earthquake, flood, tsunami etc. Any act or activity, which would not done by person or could be happen due to GOD, comes into Act of God. There is movie OH MY GOD, which is depend on GOD ACT. Due to such thing’s projects would be delay. In 2020, Covid 19 or Corona Virus is the disaster / pandemic/ epidemic and because of covid 19 many countries faced lockdown situation and they are facing tough conditions and because of all economy of all countries are getting down and created recession period. Due to Natural Disaster (Covid 19/ Corona Virus), real estate builders are not able to work, and real estate projects delay. Same with Act of GOD time, builders are not able to work and in results, projects would delay.
Misuse of Funds by Builder
This is one of important reason, that why real estate would not be deliver on time. Well, after few good project deliveries, when builders would create name or faith then builders are start using their funds in wrong manner. Like instead of focusing on one or two projects delivery, builders start launching so many projects and then builder could not able to deliver a single project. In Noida, Amrapali, Jaypee, Supertech and many more builders are in same category. Also, they start buying luxury items and spent on unnecessary things. If builder would focus on one or two project on one time then they will never face any bankruptcy type issue or they have to manage funds for launch project and then construction and delivery.
In current time, Negative Rumors is also become a reason of project delay. Because with wrong use of online marketing and media support, some unethical people or companies creates negative or wrong rumors, so that they create negativity of builder in market and then they make proposal of black mailing infront of builder. With the help of such negativity or unethical practice such unethical people or companies makes good money. Also, few builders will not support them and file case of black mailing. Such negative rumors effects on builder’s sales and due to low sales, it impacts of delivery and real estate projects delay.
Builder’s Wrong (Fraud/ Scam) Intention
Before 2016 RERA formation, there were so many builders who creates hype in the market and collect funds unethically from investors or buyers. In Noida region, I hope you heard about Cosmic, Premia, Collective Growth, Ek Dant and so many companies, who basically launches so many projects but their intention were not right or they just want to collect fund unethically and then run away and created scam or fraud. In March 2016 RERA formed for such reason only because earlier in Indian there was no regulatory authority who ask question to builders and charge penalty. Well after formation of RERA, still things are not so smooth or good but still better than previous. And Real Estate Projects delay issues are reducing.
Low Cash Flow in Builder Firm
From last 2013, Real Estate Market is only crashing and like earlier every third person wants to buy or invest in property. But now real estate is not the first choice of investors and buyers. They are looking for better and better ROI options. This is reason why real estate builders are facing low sales. Only on some festivals like Diwali time, they could be having good liquidity but rest time they are facing low liquidity. In real estate, 60-70% works are depended on cash and because of low sales or booking, liquidity or cash flow would be low, and work could be in pendency and it impacted that Real Estate Projects delay.
Real Estate Projects Delay due to Court Case
In current time, when person is educated and aware for their rights, it is good but sometimes it is bad also. Because many greedy people those who are looking for some profit or gain, they use wrong step and directly involve courts in the matter. May you heard that people use to take Court Stay on projects and stop the construction or work of project. Such things would become a part of Real Estate Projects delay. Because if any person has any doubt then directly ask question to builder or involve RERA authority. After that, if person would not be satisfied then take a step of court.
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