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.
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.
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.
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.
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.
Self-sufficient integrated townships are fast becoming the order of the day, and
are popular among developers and
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.
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!
Environment for Children Urban
causing children to become increasingly cooped up in cramped apartments,
resulting in excessive use of technology and lack of exposure to open, green
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-carecentres 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.
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
great potential rental incomes. Additionally,
offer the added advantage of lower maintenance costs, as service taxes and
maintenance charges are distributed over a large population.
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
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,
other enjoyable activities make living in integrated townships an extremely
wholesome and satisfying experience.
There are, however, very few integrated township projects in
Republic is one such project, which is in advanced stage of development and
offers various residential
options to meet requirements of different budgets.
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.
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
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.
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.
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
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
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.
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.
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.
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:
Choose a developer who has delivered some projects in the
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:
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
and reputed developers ensure that they keep their commitments to the customers
and therefore use modern project management techniques to ensure customer
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.
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.
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
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).
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
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.
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.
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
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.
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
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
republic is continuing the construction and provision of other facilities
and therefore is finding traction with new customers.
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.
Step 2 : Assess Family
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
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
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.
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.
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
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
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
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
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.
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:
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
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
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
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
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.