10 things to watch out for in a under Construction Property

The thought of under-construction property investment in Mumbai would sound both exciting and overwhelming at the same time. It is rightly said that Mumbai is the city of dreams, and thus, it opens various opportunities for people who are looking to buy their dream luxury home. However, investment in an under-construction property carries some risk factors and thus, requires due diligence, research, patience and a keen sense of detail. Today, we will present a list of ten crucial factors that you must consider especially in the realm of Mumbai real estate.

1. Builder’s Reputation and Track Record Credibility of the developer: 

You must research the past projects of the builder, including delivery timelines, financial strength, and standing in the market. A builder who has delivered quality projects on time in the past is less likely to disappoint. To get more consolidated proof, check online forums, and reviews, and consult existing customers if possible, to gauge the builder’s reliability.

2. Legal Clearances and Approvals

You must ensure that they have received all necessary legal approvals and clearances from the Mumbai Municipal Corporation and such other authorities. These approvals include the following - titles, environment clearances, and building approvals. Any lack of proper approvals can lead to legal troubles and even stalling of the project. 

3. Location and Connectivity

The location of the property is key to its quality of life and investment appreciation. Check out the connectivity to the major business hubs, proximity to services such as hospitals, schools, and shopping centers, and overall infrastructure of the area. You must make sure that the property being constructed is in close proximity to all of this.

4. Quality of Construction

Quality construction is essential for the durability of any building. Be very particular about the materials used, the construction practices adopted, and the technology used by the builder. You should visit builders' previous projects to witness construction quality and meet some residents for feedback.

5. Amenities and Facilities

Modern and urban living requires a number of amenities for convenience and leisure. Amenities will include swimming pools, gyms, play areas, and security systems, along with parking facilities and green spaces. Besides, these amenities add to a comfortable lifestyle and add value to the property especially if you’re planning to re-sell.

6. RERA Registration

The Real Estate (Regulation and Development) Act, of 2016, aims to bring transparency and accountability in real estate transactions. You should ascertain from the website whether the project is registered under RERA and confirm that details available on the RERA portal pertain to the status of the project, information on legal issues if any, and past history of delays per law.

7. Financial Viability of the Project

Analyze the financial health of the project by understanding the funding model of the project, banks funding the project, and the financial stability of the developer. An unstable financial project may cause delays or even abandonment.

8. Payment Plan and Pricing

Under-construction properties provide down-payment plans, construction-linked plans, and flexi-payment plans. Choose one plan which fits into your financial situation. Further, compare the property prices with other similar projects to be sure that what you pay is at par with the surrounding projects.

9. Possession Delays 

Delay in possession has always been a problem with under-construction properties. Do check out in the builder-buyer agreement, the date of possession promised and the clause for compensation in case of delay. All these terms, when understood clearly, shall save you from a lot of hassles and loss of money in the future.

10. Post-Possession Support 

After-sales support is important in taking care of any snags noticed after moving in. It entails paperwork care, the handling of construction issues, and maintenance services. 

Making an Informed Decision Therefore, a property under construction in Mumbai not only gives the benefit of a lesser cost compared to a ready property but also the benefit of the buyer's choice of different floor plans and the choice of many locations. Even if it comes with challenges and risks. By keeping an eye on the above factors, you can mitigate these risks and make an informed decision.

Conclusion 

When we talk about real estate in Mumbai, India-  Buying an under-construction property is always a very important and emotional decision. It takes lots of research, patience, and strategy for the same. Considering these factors will help you to maneuver through this complex real estate market and make an investment that does not fall below your expectations or the financial goals that you would have set. Even with the rising markets and limitless opportunities, Mumbai remains a promising city for those wanting to invest in real estate.

HomeSharp looks into the legal, liaison and regulatory perspective of each project as well as the developer's quarterly update for sales and construction that is posted on the MahaRERA website to ensure that every home that is offered is in fact a safe and sure investment for the buyer.

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