CREDAI (Confederation of Real-Estate Developers’ Association of India) has implored the Telangana government to keep a strict vigil on the illegal and shady practices being used by real-estate agencies to trap prospective buyers into investing/purchasing projects that are not viable as an asset or just projects that are not feasible from an investment standpoint. CREDAI has urged the Telangana state government to empower the state RERA (Real Estate Regulatory Authority) to help keep these illegal practices in check.
According to CREDAI, a lot of new real-estate operators without experience and without any legitimate prior experience in the real-estate market have been using lucrative schemes & too good to be true offers to unsuspecting customers. These illicit operators generally sell UDS (Un-Divided Share) of land without the necessary approvals or any legitimate documentation. The heads of CREDAI assembled in Hyderabad last week to warn the public against purchasing property being advertised & marketed with such untrue schemes.
The top officials of CREDAI claim that the nominal & dirt-cheap prices some of these projects advertise are not even sufficient to cover construction & development costs. Most of these projects either get postponed, face innumerable delays and eventually get caught in a mire of legal & statutory problems which eventually puts the buyers at risk.
On another note, Telangana’s real-estate market has been amongst the most solid markets in India over the pandemic. Hyderabad witnessed over 50,000 new projects between Q1 2020 & Q3 2021, which was second only to Mumbai Metropolitan Region (MMR) at a time when real-estate markets across India were struggling.
In spite of the steadiness of the real-estate market in Telangana, the state’s RERA i.e., TS-RERA has not been very effective in addressing customer cases & complaints. TS-RERA has witnessed more than 5,500 cases from buyers & customers against illegal practices used by real-estate projects and agents. Yet, TS-RERA is the only state RERA to address zero consumer grievances. In India, the RERA in all other states have addressed & disposed nearly 80,000 cases. Other states with sparse RERA activity are – Andaman & Nicobar Islands, Tripura, Puducherry, Dadra & Nagar Haveli and Daman & Diu – which are mostly Union Territories.
Although the inactivity of RERA has not dampened the momentum of real-estate market, big players in the market feel the RERA could be key to protecting Hyderabad & Telangana real-estate’s good market reputation.