The real estate has been calculating the revenue on Percentage Completion Method and not Project Completion Method. With the Percentage Completion Method, the developers treated payment received from the home buyers for purchase of flats under construction as turnover of the company and net income generated from such projects was treated as profit.
The low consumer confidence has been linked as much to peoples’ lack of confidence in their own ability to pay as with the employment uncertainties. Collectively, the buyers’ risk aversion in today’s economy as well as the developers’ unfair business practices have eclipsed real estate like never before.
With high expectations from 2018, it was anticipated that the teething problems around policy initiative introduced in 2017 (RERA and GST) would ease out by the end of the year, bringing a new order of transparency and efficiency.
RERA was supposed to save the day for homebuyers, but that doesn’t seem to have happened – at least not yet. In many states RERA, in its present form, is currently either non-existent or a pale shade of what it was intended to be.
With so much money around and developers mostly uneducated, it is the senior functionaries in most of the real estate companies who create their own cartel of corruption. Sales leads that are generated within the company are generally leaked to the brokers and the brokerage is distributed with the sales, marketing or the corporate communication, depending upon their clout within the organisation.
A section of analysts maintain that it has been proved across the industries that quality audit by third party improves the product or services being offered if it has been implemented in right manner and objectives to improve the quality. As product or services gets improved in standard of quality at consistent basis then perceptions of customer towards the management also improves.
A staggering infrastructure finance deficit is threatening Asia’s growth and prosperity. By 2030, an estimated US$1.7 trillion per year (or total of US$20 trillion by 2030) in infrastructure investment will be needed in the region to keep pace with economic development, sustain population growth and urbanization and mitigate the effect of climate change.
In a move to strengthen its position as one of India’s largest student co-living companies, Stanza Living has raised a total of INR 73 crore (USD 10 million) in an investment round led by Sequoia India.
Analysts active in Navi Mumbai firmly believe that this NRI has got more than one upcoming node in Navi Mumbai where he can invest. Interestingly, the upcoming nodes have been more holistically planned and promise to have better infrastructure.
This is probably one of the wishful thoughts of the developers that have been over projected round the year (NRI investment being the other). But a ground zero study of the property market across the key cities indicate that the online property portals offering real estate deals may have made inroads like never before, this definitely is not the end of traditional brokerage or substitute of traditional format of selling through taking clients to see it and believe it.