RegNews, Hyderabad: The true builders or promoters of multi-storey apartment complexes have adopted a wait and watch attitude in the light of several undivided share of land (UDS) schemes cropped up in the city. The undivided share of land (UDS) scheme on Hyderabad’s outskirts, which took its birth two years ago, has spread to all over Telangana making the buyers to suspect the credentials of the genuine builders or developers.
In addition, 100 per cent buy back offer schemes have been plaguing the realty sector in the state. The Telangana RERA is accused of turning a blind eye to such undesirable developments taking place in the state’s realty sector. The city builders, with experience over two to three decades in realty sector, are hesitating to launch new projects in spite of the city realty market is better placed compared to realty markets elsewhere in the country.
Why the city developers are not coming forward to launch new projects in spite of the city realty market recovered fast from the Covid-19 impact? There are many experienced builders in the city. Majority of them build apartments according to a plan. If they find suitable site, they first study the market conditions prevailed there and will put their best foot forward like getting the plan prepared, securing permissions from local bodies and issue advertisements depending on the level of the project.
In sharp contrast to this approach, the UDS scheme is in vogue in Hyderabad market for the past two or three years. Under this system, the agents are doubling up as builders. The realtors who sell plots are becoming developers. But, they have no experience in building apartments at all. There was no track record of building prestigious projects. In spite of all this, many of them without thinking twice and been entering into agreements with site owners paying high amounts towards the upfront cost promising the site owners to give more apartments.
Later, they develop the land into house sites with no permissions from local bodies and the RERA. They sell flats at the price they liked. For example, a traditional builder sells in Kolluru at Rs 5000 to 6000 per square feet. But under the UDS scheme, the realtors take the cost 100 per cent upfront and sell the flats at Rs 2500 to Rs 3000 per sft.
The buyers are not verifying the background of builders and losing their hard-earned money by giving credence to the agents. They are attracted by the attractive rate per sft and not verifying the feasibility of the builder delivering the flat on time adhering to quality standards and other aspects. The UDS scheme has spread to all over Telangana like cancer. Many people dispose of their house or land in villages and adding some more of their savings to the amount realised and give it to the builders executing projects under UDS scheme.
The builder register undivided share of land in the name of buyers. The buyers feel that as though the builder handed them key to their flat. They will realise the real problem only after some period. What if the civic bodies did not allow the builder to build property due to legal problems?
There are many buyers in the city who have lost their money in such projects. They are worried about how to get back their money. Builders who feel that the UDS scheme is not correct, have been backtracking to launch new projects. They feel that collecting 100 per cent money from buyers before the local bodies issue permission is not right.
If the flats are to be sold cheaper the quality of construction would suffer, they feel. If there is no quality in construction, the developers would have to feel wrath of the buyers. That is why majority of builders think twice before launching new projects.
Where UDS scheme is prevalent?
The scheme is largely prevalent in Tellapur, Kollur, Osman Nagar, Velimela, Patighanpur, Bhanuru, Nandigama, Shamirpet, Medchal, Keesara, Rampalli, Ghatkesar in the West Hyderabad. Therefore, the buyers should think again and again before decided to buy a flat at these areas.
