Realty bubble bursts in tricity
The real estate bubble in the tricity and on its periphery seems to have fizzled out which is apparent from the increase in number of complaints against real estate developers in consumer courts.chandigarh Updated: Jun 28, 2015 10:16 IST
The real estate bubble in the tricity and on its periphery seems to have fizzled out which is apparent from the increase in number of complaints against real estate developers in consumer courts.
Data from two consumer forums reveal that the number of complaints against real estate companies, which was only 127 till 2006, shot up to 2,000 by May 2015. This means that till 2006, only nine cases were filed against real estate developers in a year as against 185 cases per year after that.
As per the statistics, about 200 cases are filed in Chandigarh district consumer forum every month of which 15% complaints pertain to disputes with real estate developers.
Most of the complaints against the real estate companies are regarding their failure to construct flats and develop commercial spaces in the stipulated period or failure to give possession of residential and commercial plots on time.
Talking about the increase in complaints against real estate developers, president of the Consumer Courts Bar Association, Chandigarh, Pankaj Chandgothia said: “As on date, the consumer courts are flooded with complaints against real estate developers. This is because they were issued licences in this area in 2006-2007 leading to the launch of a number of housing projects in SAS Nagar and on the tricity’s periphery with a promise to hand over the possession by 20102011. As the companies failed to deliver, customers started filing complaints.”
Treasurer of the Chandigarh District Bar Association Daljeet Singh said: “The housing projects launched around the city allured people to invest in real estate projects. But the reality hit investors hard when they found that the developers did not have required permission and owing to the escalation of prices of the raw material, most of the projects failed to take off.”
Property consultant Pradeep Nanda said: “In 2004-2005, the governments sold large chunks of land to private real estate developers at minimal prices. But by 2008, the projects crashed as the expected number of buyers were low and most of the housing projects did not have the capital to meet the proposed demands, Soon, the projects were caught in legal battles.”