The Haryana Real Estate Regulatory Authority (RERA) has put a curb on the sale of two projects in Gurugram — Neo Square and Zen Residence 1 — as their promoters have failed to produce the documents required for registering them with the Authority, a TOI report said. It added that show-cause notices have been served on the two projects.
“The Haryana RERA registration and the licence, as on date, of the Neo Square commercial project stand expired. The promoter has already been granted seven opportunities and still failed to rectify the deficiencies, including the renewal of licence. A show-cause notice has been issued to the promoter as to why the application for grant of extension of registration of the project shall not be rejected,” the TOI report said quoting Haryana RERA chief K K Khandelwal.
The report also quoted him saying that a notice informing the public not to indulge in sale and purchase in this project has also been issued.
In Zen Residence 1 at Sector 70A, the Rera has noticed complete negligence. Its one-year one-year extension period of registration has already expired and a large number of documents have not been submitted yet. The RERA has also restrained its promoter not to indulge in any sale in the project.
In a statement, Haryana RERA said the promoter of The Meridian in Sector 89, an affordable housing project, has already been granted over 10 opportunities and has failed to rectify the registration deficiencies. “Also, the promoters of Centra One project in Sector 61 failed to comply and rectify the deficiencies in 30 days, as nobody was present on behalf of the promoter during a hearing on September 12”
The Real Estate Market
According to a joint report by real estate consultant CBRE and industry body CII, unprecedented sales and launch momentum have been witnessed in the first half of 2022. Property prices have increased across most micro-markets and across segments due to record sales and developers’ decision to pass on rising construction costs to buyers. It, however, said monetary tightening by the RBI to tame inflation could raise financing costs.
“We are currently witnessing a fall in unsold inventory levels across most top cities of India, except a select few locations. The fall is attributed to robust sales despite steady new launches. As a result, inventory overhang at a pan-India level is at a six-year low, with average quarters to sell for projects falling from over 15 in 2017 to sub-9 levels in H1 2022,” the CBRE-CII joint report, titled ‘Indian Realty – Charting the growth roadmap for 2022′, said.
It added that appreciation in asset prices could be selective going forward. Asset prices have witnessed an uptick on account of strong momentum in sales as well as the developers’ decision to pass on the rising construction costs (on account of growing input and labour costs) to buyers.