Residential Properties

Why Gomti Nagar Extension is the best residential area in Lucknow in 2021?

If you are looking to buy a home in Lucknow this new year, you must read this piece before you make a final decision. Why? We have looked at various localities of Lucknow and are then making an informed suggestion to benefit you both in short as well as long term. You need this advice because a home buy will probably be the biggest purchase you will make in your life.

Why Gomti Nagar Extension is the best residential area in Lucknow in 2021?

Lucknow is one of the fastest growing cities in India and has increasingly emerged as the preferred choice for buying a home for anyone in eastern and central parts of Uttar Pradesh. A well laid out basic infrastructure, already functional metro rail, an international airport and excellent network of roads provide the basic wherewithal for a tension free life here. Added to this is a well – educated and one of the most civilized population groups in India. This is also the seat of political, judicial and executive power of the largest Indian state of Uttar Pradesh. With a stable government at the hub, the opportunities galore in this futuristic town.

Why Gomti Nagar Extension is the best residential area in Lucknow in 2021?

When one looks at Lucknow, the city has grown in all the directions in last few years. There are developments in Gomti Nagar extension, Raebareilly road, Sultanpur road, Hardoi road and Kanpur road. However, if you ask anyone in Lucknow his preference for buying a new home, the answer in all likelihood will be Gomti Nagar extension or Shaheed path (which is the official name), unless there are budget constraints, one is facing. The rental values for flats in this area are easily 1.5 times a similar apartment in the second best residential area. Despite a relatively new development, the locality is being considered even by old Lucknowites to move in and stay.

The question is then, why this rush to buy homes in this area. To get the answer, we should look at multiple factors. Gomti Nagar extension has an excellent connectivity to the airport and the railway station through Shaheed path. The second thing one looks at is the amenities in the area. Whether you look for entertainment facilities or shopping area, there is no close rival to this location. The largest and the newest mall, the phoenix city mall is located here, which has got a gaming area and a multiplex. There are multiple facilities for sports with an international cricket stadium, Ekana cricket stadium located here. The area is also blessed with many schools affiliated to different boards, where students from all over Lucknow prefer to study. The medical facilities in the vicinity are the best in the town.

Another reason why this locality emerges as the most preferred destination for home buyers, is the most modern apartment complexes on offer by the best builders in the town. Whether it is large north India based developers like Ansal or Omaxe or one of the best developer of UP, Paarth Infrabuild, the properties on offer here have the most modern amenities.

Paarth Infrabuild offers the best located projects Aadyant and Arka in this cluster. These projects are situated adjacent to Phoenix city mall and the cricket stadium and have the best amenities on offer.

Integrated township living – Need of our times

Imagine living in a neighbourhood where everything you need is a stone’s throw away. Sounds too good to be true? Well, integrated townships have made this dream a reality and therefore, have fulfilled a lifestyle need of new age home buyers.

Integrated township living – Need of our times

Self-sufficient integrated townships are fast becoming the order of the day, and are popular among developers and residents alike. It is an ultra-modern and cosmopolitan real estate model, featuring the combination of residential and commercial complexes with associated infrastructure such as schools, colleges, shopping centres and various other facilities. Traditional urban living is plagued by a range of issues such as overcrowding and shortage of space. Integrated townships help combat these problems by creating miniature urban ecosystems that offer an abundance of space, security and accessibility. From cost-effectiveness to convenience – the range of benefits offered by integrated townships are endless.

Easy Access to Essentials
The COVID-19 pandemic served to demonstrate the need for easy accessibility to essentials, as the movement was heavily restricted. Living in an integrated township ensures that you never have to worry about getting to a supermarket or hospital again. All the benefits of city life are offered within the project, with all essential services being available at close vicinity. By choosing an integrated township, you can wave goodbye to all the hassles of commuting!

Perfect Environment for Children
Urban environments are causing children to become increasingly cooped up in cramped apartments, resulting in excessive use of technology and lack of exposure to open, green spaces. Integrated townships effectively combat this issue through the creation of numerous public spaces for children such as parks and playgrounds. Moreover, the presence of creches and day-care centres make it a convenient place to raise children, with heightened security also ensuring peace of mind for parents. Townships enable children to grow up in safe, clean and green spaces, with no dearth of opportunities to run around and enjoy their childhood.

Great Value for Money
While a township property may seem like a large investment, a closer look reveals that it is more cost-effective than buying an independent property. As townships are often located in the outskirts of cities, they offer a wide range of amenities at reasonable prices, while ensuring great connectivity to the main city. Moreover, townships offer a better return on investment and great potential rental incomes. Additionally, integrated townships offer the added advantage of lower maintenance costs, as service taxes and maintenance charges are distributed over a large population.

Enhanced Lifestyle
Apart from essentials such as schools and supermarkets, integrated townships also feature a range of facilities and benefits to enable an optimal lifestyle. These projects offer an escape from the claustrophobic city, with an abundance of ventilation, greenery and open spaces. Moreover, the reduced need for long commutes also allows you to spend more time doing the things you love. Provisions for jogging, yoga, meditation and other enjoyable activities make living in integrated townships an extremely wholesome and satisfying experience.

There are, however, very few integrated township projects in Lucknow. Paarth Republic is one such project, which is in advanced stage of development and offers various residential options to meet requirements of different budgets.

Increasing demand for 3 BHK apartments

The real estate market in India is going through an interesting phase. While on one hand, the reducing home loan interest rates and stable prices are attracting new home seekers, the current home owners are looking to upgrade on the other. The mid income segment housing space is heating up and the data suggests that there is a fast increasing trend in enquiries.

The data for different towns and projects in India shows, that over the years 2 BHK homes were most preferred by new buyers everywhere. This also resulted in a skewed planning by developers, which favoured a higher percentage of homes to be constructed as 2 BHK and very few as 3 BHKs. However, with improving income levels and increasing lifestyle demands, a certain shift towards 3 BHK apartments is being observed. These 3 BHKs are also offered in some cases as 2BHK+study configuration, making these more affordable, while providing that extra room that can be used as needed.

If we look at the evolution of this demand, we can find a few strands of it in the way the society is growing. As the nuclear families have become more common and a typical family has 4 members, including 2 kids, the requirements of 3 rooms beyond the living room is a basic requirement for a typical middle class family in cities. It is no more an acceptable trend to accommodate guests in the main bed room or in some temporary sleeping area. The kids rooms are also designed in a way that they can’t be used for guests, therefore the need for a third bedroom is felt by most mid-income families.

Another reason, why this trend for 3 BHKs is increasing is the affordability. The incomes have increased, while the prices have not moved up for homes over last 3-4 years. With interests on home loans at the lowest ever levels, suddenly the same EMI can help buy a bigger apartment. There are instances across India, where a builder has also helped the existing buyers waiting for possession, upgraded to a larger unit without changing the financial impact to the customer, using a decrease in interest cost of nearly 2-2.5%, to cover for the additional unit cost. That has also been welcomed by buyers.

A huge jump in 3 BHK homes in non-metro towns, like Lucknow is also observed due to the offered price point. A 3 BHK home in Lucknow can be bought for 60-80 lac, a sweet price point for most families. The other reason which has apparently pushed more people towards a larger unit is the impact of work from home employees. With pandemic starting a new preference both for employees and employers, where work from home is quite acceptable, the need for larger homes is felt more than ever. The extra room which can be used as a temporary office setup, can also be used as a guest room, when needed.

Paarth Infrabuild offers beautiful and well-designed 3 BHK homes in different projects in Lucknow at prices which are attractive for md-income families.    

Does your home reflect your personality?

Every home, even if constructed with the same design, feel different. This difference comes in due to the ways one decorates or maintains his home. No wonder, the home reflects the owner’s personality in more ways than one. The design of your home can be an expression of yourself and you build a story through the colours and styles that you choose. Your home is your haven, so when it comes down to it, it should reflect the people who live in them. There are many ways it happens. Let’s look at these, which can bring you closer to the vibes of your home.

Lifestyle

If you are someone who likes to be organized in life, then the chances are that your house will be clean and spacious, and there won’t be a pile of clutter in sight. Homes with lots of storage and simple designs reflect those who are logical and calm, and like to have things planned out.

Accessories

For those who love the outdoors, homes will be full of plants and flowers, with a garden bursting at the seams. It is important to make sure your home reflects your lifestyle, as how you feel in your day to day life should be the same when you’re in your home.

There are many different ways that personality can be reflected through the accessories around your home. You may be a fairly quiet person, but the yellow cushions on your sofa or the floral tablecloth you choose in your kitchen could reflect your positive outlook in life.

The pictures you have on your walls or the designs you choose for your curtains could also reflect your love of animals, without actually taking over the house. It’s nice to inject your personality into all the different accessories around your home and garden.

Experiences

A great way to find out about someone is to learn about his or her experiences, and often these can be seen around the home. Homeowners that spend a lot of time traveling often bring home keepsakes and trinkets that can be found in various rooms, showing the experiences that they have had in life.

The experiences you have tell a story and are reflected in who you are and how you feel, and this is then reflected in your home decorations. It’s great for someone to be able to walk into your home and really feel that it represents you.

Relationships

The way you decorate your home can definitely affect the dynamics of any relationships you have in the house. Think about all the different people who live with you and how their personality could also be reflected in the way your home is decorated.

If you have kids your home may have some smaller pieces of furniture or rooms with brighter walls. If you live with your other half, you may choose colours that reflect love and romance, turning your house into a warm and cosy home to share together. 

Paarth Infrabuild offers homes, which one can customize to a great extent basis his personality and lifestyle choices. There are homes of different sizes and designed differently, creating communities around these choices the customers make.

Benefits of buying a home from reputed developers

In last decade, the age of home buyers has gone down and number of home buyers has increased substantially. Taking advantage of the same boom, the developers have started to offer the customers with different types of housing projects, for their ease and to cater to their interest.

However, there are some fly-by-night developers who have entered the trade to make some quick money. They would typically release attractive advertisements and offers to lure customers. There are also some developers in every market who have delivered good projects in past but are facing huge financial crisis. Therefore, a critical part of a home-purchasing decision is background check on developer. So what should one look out for:

  1. Choose a developer who has delivered some projects in the city earlier
  2. Check out for a financially strong builder. You can do a google search on the developer to see if he has defaulted on some payment etc or taking huge loans. It’s better to avoid such a developer even if he meets the criteria 1.

While it might sound like some work, a due diligence at this stage will help you to avoid disappointments later. Some of the benefits that one can enjoy by purchasing a home through a reputed developer:

Modern Design

A reputed developer who has multiple projects, will have his own setup to oversee the designing and the construction process. This ensures one gets the most state of the art design, which are functionally useful and provide living comfort for a long time. Typically, a developer with a quick money in mind, doesn’t create his own setup and gets contractors to do everything. This results in compromising quality as the contractor is not bothered about his long term reputation with the end customer. 

Transparency in dealing

A reputed and large developer will have a process to take care of any concern raised by a customer, something which is very important in buying a product with deep engagement. There is a process of 3-4 years during which you need help on aspects like checking progress of the project, payment reconciliation, documentation etc. Small developers don’t have CRM department to handle these queries and ever changing sales people are of no help in such situations. Also, with a large developer, everything will be recorded in writing or through a mail. Registration of projects with RERA also ensure a certain minimum transparency by the builder. The projects offered on individual basis by small builders in unorganized sector are not even registered with RERA and offer no specific details.

Easy accessibility of Home Loans

A reputed developer will already have a project approval done for home loans for its customers through reputed financial institutions. In such a case, it becomes extremely easy for a customer to get his home loan processed. In some cases, financial institutions also offer special promotions on home loans like subvention schemes or special interest rates for home loan on such residential projects.

Timely Project Delivery

Good and reputed developers ensure that they keep their commitments to the customers and therefore use modern project management techniques to ensure customer satisfaction.

Paarth Infrabuild is one of the most reputed developers of Lucknow. They have multiple projects in the city and offer best value for money to its customers with transparent offers.

2021 – The time for residential Real Estate

2020 though affected adversely due to beaten customer sentiment, saw good traction for residential real estate towards the end of year. Q2 of calendar year was absolutely poor as most of the country was under lockdown, but the pace of recovery intensified with residential  real estate sales increasing by 51% in Q4 2020 when compared to Q3 2020. This is as per the recently published report Residential market update report for Q4’2020 by JLL.

The time for residential Real Estate
Happy family planning their new apartment

Sales picked up on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans & freebies from developers coupled with government incentives such as the reduction of stamp duty in some states like Maharashtra & Karnataka (for affordable housing). The easing of lockdown restrictions and the ongoing festive season further aided in bringing buyers back to the market.

On an annual basis, sales in 2020 recovered to more than 50% of the pre-COVID volumes witnessed in 2019. The markets of Hyderabad, Mumbai and Delhi NCR gained maximum foothold in 2020 as compared to 2019.Some markets like Lucknow, in fact, experienced a big rebound in sales and helped developers to increase prices of properties also, which had been stagnating for last few years.

While there is still a long way to go, the worst is behind for the residential sector, reveals the report. It says the challenges faced by residential real estate in 2020 have, in fact, become the catalyst in providing stimuli to the industry for sustained growth. With people spending an inordinate amount of time at home, the lockdown re-established the importance of owning a house. At the same time, the Central Bank(RBI) is leading the way to recovery by holding policy rates at historically low levels to initiate a cycle of consumption-led growth. This has resulted in extremely low mortgage rates. And, prices have also been stagnant for the past few years. This affordable synergy makes it a great time to purchase a home. Furthermore, the market is also witnessing renewed interest from Non-Resident Indians (NRIs).

The significance of owning a home to avoid the uncertainties of living in a rented accommodation was reinforced during the pandemic. The desire to own a home is perhaps now stronger than ever. Moreover, while end users continue to drive demand, there is renewed interest from investors and from Non-Resident Indians (NRIs) impacted by economic uncertainties in Europe and the Middle East and they find India to be a safer place than the place they are inhabiting right now.

The pandemic has also changed the preferences of homebuyers and has been bringing in new dimension to property search. A healthy lifestyle will be a key criterion for homebuyers in the post-COVID era. Resultantly, preferences will tilt towards larger homes in self-contained complexes with facilities like gym, green open spaces and access to daily necessities. Moreover, with work from home becoming a reality, product configurations are likely to change with bias towards larger homes.

Also, remote working practices will increase the attractiveness of suburban markets. Suburban markets offer lower density environments and more spacious apartments at affordable rates. Since, travel to office may no longer be an everyday activity, the importance of connectivity to office hubs will no longer dictate home purchases.

It is also pertinent to note that project delays, could be cited as one of the biggest reasons behind a demand slowdown that has gripped India’s residential market in the last few years. Therefore, demand for ready-to move-in homes or homes in advanced stage of construction is likely to remain strong. Also, the effective and uniform implementation of RERA across Uttar Pradesh is expected to improve the confidence of homebuyers and ultimately, lead to greater sales traction in newly launched and under-construction residential projects also.

In 2021, a further improvement in sales across all housing segments is expected. However, development focus on mid and affordable segments is expected to continue. In 2020, more than 80% of the new launches were in the sub Rs 10 million category. Moving ahead, new launches will remain concentrated in these price segments with developers trying to reap the benefits of strong pent up demand in these segments. The government is also committed towards boosting affordable housing. The recent Union Budget has extended the benefit of additional interest deduction on home loans for first time home buyers in the affordable segment. Further, there is a time extension to claim the tax holiday on profits from affordable housing projects until March 2022.

The organised housing market in India has seen the influx of several organised players in a bid to tap the opportunities arising out of the strong demand from a growing millennial workforce. This brought back in focus the modern lifestyle offered by state-of-the-art township designs. The large open areas and facilities contained within are great reasons for customers to flock to these projects. In Lucknow, there are very few options like these available with reputed builders in a modern environment. There will be an increased focus on health and wellness aspects in the post-COVD era, which is expected to drive demand for organised and all-encompassing housing setups. Paarth Republic township offers its customers these advantages to adapt to the changing lifestyle requirements.

Another important aspect which is increasingly being seen in towns like Lucknow is the senior citizens living alone. These senior citizens living alone were the most impacted during the pandemic. The role of an organized township with modern healthcare facilities becomes all too important now. Only a self – contained residential complex can be designed with senior friendly amenities such as medical support on call, services for food, housekeeping and assistance around the clock, which became more prominent during these trying times. This has increased the attractiveness of such facilities and demand for organized senior housing setups is expected to pick up in the near future.

If 2020 was the year that changed everything, 2021 may be the year where change becomes the ‘new normal’ and adapting to this ‘new normal’ will require imagination, innovation and digital transformation. The arrival of 2021 will not shake off all the challenges of a pandemic-riddled economy but the groundwork for a sector-wide recovery has been laid. The year is poised to establish itself as the year where India enters a new phase of real estate growth, innovation and investment.

With strong financial health, Paarth republic is continuing the construction and provision of other facilities and therefore is finding traction with new customers.

10 step guide to buying a new home in India

Step 1 : Decide your Budget

Your home is one of your biggest purchase. A proper budget has to be planned to know how much money will be left each month to meet your expenses, after accounting for home loan EMIs. It is therefore, very important to look at your past savings for the purpose and estimate how your future earnings are expected to move. It may be simpler for a salaried person, though may involve some serious work for a business owner or a self employed professional. One should also account for any future expenses that can be accounted for now, like children’s educational expense etc.

10 step guide to buying a new home in India

Step 2 : Assess Family requirements

Remember, you are buying a home to ensure that your family enjoys living in it. Different members in the family can have different interests and expectations from new home. It is critical to understand their requirements before you set out on home search. Your family size will help you determine the number of rooms that you need. You may need extra room, in case, a family member is a professional or work from home executive. Older parents, similarly may need easily accessible open space as well as medical facilities nearby. All these along with future needs should be considered while planning to buy your dream home.

Step 3 : Location

It is essential to decide on a few areas where you want to buy a home. It can depend on location of kid’s school or your office. There may be other specific considerations for the family with reference to location and all of these should be brought in, before filtering the preferred locations. Take a good look at the location and the locality by visiting shortlisted areas at different times of the day. It is preferable to choose a developing area, adjacent to the prime business district of your city so that the price is not that high. Location will also have a large impact on the resale value of your home. Choose wisely to ensure your home is a wealth creator for you in future.

Step 4 : Rental rates in the area

The rental rates in an area are a good proxy to understand how people in general perceive an area for living. Since these rates are decided by people based on the amenities in the locality, and the general advantages the locality offers, compared to other locations, it can be a good comparison for several shortlisted locations. Typically a project with higher rentals will be closer to work areas and required amenities like schools and hospitals.

Step 5 : Resale Value

Resale Value is an important thing to consider before you plan to invest or buy a property. Property buyers generally don’t consider this point, when they buy. They make the mistake of focusing solely on a prime locality or the budget of the property. If you choose the wrong property or location, it is possible that your future sales price will always be less than the other homes around it. It is important to look at your home also as a wealth multiplier over a period of time, as at some point of time, you may plan to sell it and buy a new house.

Step 6 : Loan eligibility

Home loan eligibility depends upon the repayment capacity, income, existing loans or debts and age of the loan applicant. The lending company or banks provide online services such as home loan eligibility calculator or pre-approval of loan. These will help calculate loan eligibility of the home loan borrower and therefore help in deciding the budget for your purchase. The maximum loan that can be sanctioned varies with the banks and the eligibility criteria may vary according to the bank or RBI regulations. It is also worthwhile to check the documents that will be needed for availing a home loan and the interest rates offered by different banks. Although, now most of the prominent developers have a facilitation cell for home loans.

Step 7 : Stamp Duty & Registration Fee

This is an important expense or tax, much like the sales tax and income tax that are collected by the Government. When planning your budget for property buying and deciding to buy a property, you need to know the rate and charges applicable in your city. If you want to know the market value of your property and the stamp duty amount on it, you need to contact the Ready Reckoner to locate your valuation zone and sub-zone. These details are available online as well as the builder team can guide you on it.

Step 8 : Additional Costs

Even if this isn’t your first time home buying, you will want to get help from a team of professionals. Fees or service charge by real estate agents, lenders or mortgage brokers, home inspector, land surveyor, lawyer or notary etc should be considered. Find out how much is the maintenance charge. Will car parking be provided and do you have to pay extra for it. If your previous owner did not have a vehicle, speak to the secretary of the society and ask for a parking lot. Also, you should consider getting your home insured, which will also have a cost.

Step 9 : Developer credentials

Different developers have varying motivation behind a project development. There are some developers, who have multiple projects in the city or elsewhere and therefore, they want to give a lasting value to the customers, expecting to earn a goodwill. At the same time, there are some whose only interest is in making quick money. It is, therefore, important to do a thorough check on the developer before you sign on the dotted line.

Step 10 : Approvals

There have been multiple instances when developers launched a project without getting all the approvals. Though, with RERA, the instances of the same have reduced but there are still some people who try to play on customer’s ignorance. It is important to check all the necessary approvals – like RERA approval. You may visit RERA website to get complete details as shared by a developer with the authorities and then cross check the details given by developer representative with these.

If you take care of these steps, your home buying experience will be smooth and you will enjoy long term happiness. The process may take some time, but when making an important investment decisions, it is worthwhile to spend this time.

If you are looking to buy a property in Lucknow, trust Paarth Infrabuild. With some of the best residential projects in the city and a legacy of trust and transparency, they will be an ideal support to help fulfil your dream of a beautiful home.

Paarth Republic – the only planned township on Kanpur road

Modern life is busy and full of stress. With the advent of web and mobile telephony, it has become extremely difficult to keep our personal and office time completely separate. The increasing globalization in every job is also overlapping time zones and is bringing a new dimension of stress. Thankfully the town planning has kept pace and ensured that there are separate zones of actions for different kind of activities. Paarth Republic township on Lucknow Kanpur highway has used these concepts of planning to make life for its residents peaceful and enjoyable. This is also the largest township on this side of town, which brings its own unique advantages.

Paarth Republic - the only planned township on Kanpur road

Let’s first understand as to what is meant by a planned township. A planned township is any community that was carefully planned from its inception and is typically constructed on previously undeveloped land. This contrasts with settlements that evolve in a more ad hoc and organic fashion. We have all seen the chaotic life in unplanned and organically developed residential clusters of Lucknow. Places like Alambagh or Krishnanagar are an example of this life – with no plans and regulation, one can see a commercial development next to a residential one without any concern for privacy of residents. A planned township is an antithesis to this. There are separate zones for residential, commercial and recreational activities. This ensures providing all the facilities without compromising one’s privacy.

The concept of town panning is as old as civilization. However, most parts of Indian cities emerged from expansion of old villages or towns. This resulted in haphazard development. However, some of the cities like Chandigarh, Lutyens’ delhi, Noida have been planned developments with clearly marked zones for different type of activities and a planned infrastructure. However, cities like Lucknow have been deprived of these advantages. Some developments of this kind have come up near Gomti nagar, however on Kanpur road, Paarth Republic is the only development that uses the modern concepts of town planning to ensure it is a premier most township not only of this area but in entire Lucknow.

But what are the advantages of a planned township living. A township living ensures that all the basic requirements of a peaceful and happy life are made available in a fashion that protects individual choices of all residents while offering them advantages of community living. The residents, therefore, don’t have to worry about basic requirements of living. There are markets inside the township to meet everyday requirements of provisions and medical facilities to take care of any eventuality. A clear demarcation of each residential unit and written rules about what modification are possible, make sure that there are no unnecessary disputes among neighbours. Clearly planned and marked parking areas ensure that there is sufficient space for parking and avoids any disputes which is a huge trouble in city areas now a days. The areas of recreation facilities and clubs etc are created a bit off from the main residential areas ensuring no disturbance to sleep of people living here. All this goes on to make life happy and satisfying.

Indians have been flocking to buy houses in large planned townships, especially in post pandemic era. Paarth Republic is seeing a continued traction for its offering and has limited units left to be sold.

Infrastructure development in Kanpur road area

Lucknow has been growing fast over last decade and has been a leading non-metro town when it comes to new developments. While infrastructural developments are happening across the city, the progress in Lucknow-Kanpur road area is quite rapid. And it is quite appropriate considering that this road connects the two most important cities of UP and it has the fastest growing airport east of Delhi airport. The metro connectivity to other parts of city from here ensures a quick and efficient transport system.

Till a few years back, Kanpur road area was not considered to be appropriate for luxury residences. The city was gravitating towards Gomti Nagar and further towards Raebareli road. Amausi airport had not received any expansion for years and connectivity from this area to rest of the places in the city could at best be described as patchy. The ongoing metro work was a nuisance and it was not easy to visualize the advantages of this network in future. But as Lucknow started growing and airfares in India started coming down, people took to air travel in droves. The airport was expanded and international flights were started. Just to understand it, let’s look at some of the statistics. The footfall at Amausi airport increased from 23 lacs in 2013-14 to 47 lacs in 2017-18. Also, as the metro started operations, people realized the efficient mode of transport it provided and suddenly this whole area near the airport was in focus. There is an ongoing project of an elevated road connecting Shaheed path to airport.

As the metro network keeps getting expanded, new infrastructure developments started taking place in the area. A new integrated terminal building at the airport was started with an outlay of roughly 1400 cr. And is progressing fast. The Lucknow- Kanpur highway was also upgraded and is now a congestion free road, further paving way for making driving smooth here. Another big infrastructure project that has been announced in this area in Sep’2020 is the setting up of India’s largest start-up incubator center opposite Amausi airport. This is planned to be a 2.5 lac sq ft facility which will be set up by Uttar Pradesh electronics corporation and probably be built and operated by Software Technology parks of India (STPI), a central government agency.

As expected, this area is witnessing a rush of private projects also as government projects are reaching their completion. There are new industries being set up and a number of residential projects are being launched. As Amausi airport expands and new integrated terminal starts operation, this area will also become a large transit center for travelers from across Uttar Pradesh. Considering that, a host of new hospitality projects are being developed in the area, which will improve the traction even further. Though most of the residential projects in the area are very small in their scope and are not well planned, the Paarth republic township is sure to meet the expectations of new age investors and renters. As a result, the prices are moving up in this community as rental yields are also expected to move north.

Why is RERA important

In India, owning a home is a dream most people savour through their life. There is only a small percentage of people who get to own their home. Most of us save our lifetime income for buying a home of our dreams. But before buying property lots of questions arise in buyer’s mind. Are we investing in the right location? Will the builder deliver what is promised? Is this builder an honest builder? What clauses should be there in a house buying agreement? To solve this problem the government has introduced RERA for home buyers. Let’s understand in detail as to what is RERA and what does it entail.

Before this regulatory act, some unscrupulous builders and developers of India had their own rules and regulations. The buyers were given almost no choice by such developers. While the buyer was paying for the property and this would be the biggest asset most of them ever invested in their lifetime, a lot of builders avoided sharing the important details with the customer. That is why Real Estate Regulatory Act (RERA) was introduced, to protect buyers’ rights on one side and builders’ payments on the other.

What is RERA

The Real Estate Regulatory Authority (RERA) is an act introduced by the Indian government in 2016. The main objective of this Act is to protect property buyers’ right and help them reach out to a regulatory body in case of any issue with the builder. The act also ensures that property buyers understand their responsibilities of payments and they protect a developer’s rights to ensure there are minimal disputes.

RERA has put forward clear guidelines regarding constructing and developing the real estate. This has brought a lot of transparency between buyers and developers and established a way forward in case of a dispute. As there are uniform rules created, it becomes easy for a buyer to compare different projects and understand detailed cost structure without the bomb of hidden charges exploding on him later on.

Importance of RERA

Indian real estate needed a regulation like RERA to add confidence in India’s Real estate sector. RE is a leading part of the economy and contributes to almost 15% of GDP. The act ever since initiated, has resulted in several changes in construction sector by bringing in transparency at every step and forcing all parties to fulfil their duties.

The act has brought clarity between property buyers and property developers thereby building the necessary trust between sellers and buyers. It has established state authorities in every state and has tried to do away with anomalies or malpractices in the sector.

Now RERA is helping home buyers in timely delivery of their real estate project. That is a great relief for homebuyers across India. It also is a great news for developers like Paarth Infrabuild, who have always kept the interests of customers at the center.

RERA has become a rule playbook for both seller and buyer of real estate that include the intermediaries also. The few provisions of act have made the following beneficial changes to RE selling:

  1. Uniform size definition

There is no denying the importance of the size of a unit when buying a property. Before RERA, every builder had his own way of defining unit size and was difficult for a buyer to understand the implication of various components shown for a unit size. However, with RERA, a standardised way of defining unit size has been propounded making the process transparent and trustworthy.

2. Penal interest rates

In RERA regime, in case of default in payment by the buyer or default in completion of the project by the builder, the rate of interest to be paid shall be the same for both parties.

Earlier it was very different. In case the builder used to delay the possession of property – the interest paid by builder to the home buyer was less whereas in case the buyer defaulted – the interest to be paid by the buyer to builder was much higher.

The RERA Act has now clearly specified that the interest rate shall be the same for both the parties, making the process fair.

3. Fiscal discipline for builder

A developer usually has several projects which are being constructed simultaneously. Earlier there was no restriction on builder to use funds from a project in the same project. All that has undergone a change now. This would now not be possible as after the introduction of RERA, the builder is liable to deposit 70% of the revenue collected for a particular project in an escrow account. He can withdraw from such account only on the basis of completion of project, which shall be certified by a civil engineer, architect and a chartered accountant in practice.

As the funds can now not be diverted to other projects and used for other purposes – this will ensure that the funds are used for the purpose only for which they are raised.

Pre-RERA, there have been certain cases wherein some rogue builders raised the funds from home buyers for constructing their homes but used the funds for buying land for the next project leaving this project in limbo. They later became starved of funds and were not able to complete the construction of the property.

As the funds can only be used for the purpose for which they have been raised – this will ensure that the funds are not diverted elsewhere and that the money is used for the purpose for which it is raised, thereby ensuring timely completion of the property.

4. Right to information

This has been another big change in RE sector. Retail customer often was not provided all the information and he had no way to force the builder to share the requisite information. However, RERA has clearly stated various information which should be provided in writing to buyer in the agreement as well as in the advertisement.

5. Grievance redressal

Grievance redressal was another area where buyer used to run from pillar to post to get himself heard without a positive outcome. Now RERA has ensured the establishment of an authority for grievance redressal in every state making life easier for a customer.

The biggest advantage of RERA lies in discipling a few errant builders and thereby making a level playing field for all developers. Institutional developers like Paarth Infrabuild, who has all its projects approved by RERA, and who have always been transparent to customers are major beneficiary of this act along with the end customer.