Business with values is need of hour

King Johnson Koyyada : They are all builders and developers. Notwithstanding their experience in the industry, these developers comprising both new and old players, are trying to sell off their projects promising flats for just Rs 20 lakh and villas for Rs 30 lakh. Agents are being hired offering about six to ten percent commission in exchange for collecting 100 per cent amount for these properties from the gullible consumers.

If one keenly observes, the situation in Hyderabad is similar to what happened in Delhi-NCR a decade ago. The vicious culture of selling flats only through agents, without any direct contact between developers and buyers, also began in Hyderabad. If the same situation continues in future, the construction sector in Hyderabad will be damaged beyond recovery. These developers can still stick to their values and excel in the construction industry. Else, they might end up behind the bars like their friends from Noida and Gurgaon areas or keep appearing in the courts for every hearing.

Driven by greed, some developers in Gurgaon and Noida sold flats by offering six to ten per cent commission to their channel partners. Both the agents and the land owners made good money. But, the developer got stuck and failed miserably in handing over the flats to buyers in a timely manner. All such developers have either ended up behind the bars, or running around the courts till date. Their greed had led to their destruction, both professional and monetary. Some developers in Hyderabad too appear to be walking on the same road.

In Hyderabad, a developer had sold 120 flats without RERA’s permission by paying about six per cent commission to the channel partners/agents. Interestingly, such builders have no proper answer to the question as to whether such projects will work out financially upon paying such huge commissions. Several professional builders are not relying on such channel partners and instead, selling their properties on their own. However, the problem still persists with the companies selling plots and flats through UDS, pre-launches!

While one must welcome the new trends and energy of debutant realtors in the construction industry, but they must pay attention to executing their projects rather than focusing on sales through UDS and pre-launch offers. They must be careful about some agents who are selling the properties promising to construct apartments within short span and at a discounted price, if the buyers were willing to pay entire amount in advance. While such agents are minting money, the professional builders are getting into trouble, due to such activities.

To ensure that Hyderabad does not turn into another NCR, the builders must do their business based on values and continue to progress in the industry on a long-term basis. Otherwise, they might have to leave this field permanently. The developers must give up the habit of easy money and adopt self-discipline to put an end to such misguided practices. They must sell their projects only after obtaining RERA approvals. Developers must act transparently and aim to hand over flats to buyers in a timely manner. Thus, they can earn a good name without compromising on quality.