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Introduction
Buying property in India is a significant step, especially for Non-Resident Indians (NRIs) who may not be familiar with the market. If you’re considering an under-construction property, the process can feel even more complicated due to potential delays, quality issues, and communication gaps. However, by focusing on a few essential checks, you can make a smart investment. Here are five things every NRI should consider before buying property in India.
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1. Check the Builder’s Reputation
The first step when buying property in India is to research the builder’s reputation, particularly for under-construction properties, as you can’t see the finished product yet. A builder’s reputation gives you an idea of their reliability and quality.
Look into the builder’s previous projects and their track record in the market. Sometimes, properties look amazing on paper, but if the builder isn’t trustworthy, you may face issues with delays or poor construction quality. A reputable builder is likely to have several successful projects and will deliver on promises, even if their properties are priced a bit higher. Paying a little extra upfront for a reliable builder can save you significant trouble later on.
2. Verify RERA Registration
Next, make sure the builder is registered with RERA (Real Estate Regulatory Authority) in India. RERA is crucial for transparency, ensuring that only registered builders can collect funds and that they’re committed to project timelines.
If your builder is RERA-registered, you’ll have more legal support if issues arise, such as delays or quality problems. Builders who are not registered are not legally allowed to collect payments before registration. Most Indian states have RERA websites where you can check a builder’s registration status, making it easy for NRIs to verify that everyone involved—builders and agents—is compliant with regulations.
3. Assess Quality in Past Projects
Looking at the builder’s projects completed within the last 5-7 years offers valuable insight into their construction quality. Buildings typically start to reveal their durability and quality around this time. Do these projects show structural issues, leaks, or other signs of wear? Quality builders deliver properties that hold up over time, even if they cost a bit more upfront.
If you notice damp walls, cracks, or other signs of deterioration in the builder’s older projects, it could indicate poor quality control. In such cases, it’s wise to look for other options, even if the pricing and location seem attractive.
4. Ask About Project Delivery Timelines
Timely delivery is often essential for NRIs, as no one wants to wait years beyond the promised date for their property to be ready. Although most developers now specify project delivery dates, sometimes these are overly optimistic. Checking the builder’s punctuality record can help you avoid long delays.
While RERA aims to reduce delays, some builders list longer completion timelines on RERA documents to avoid penalties, even if they expect to finish sooner. This means they may list a project as taking four years when it could be done in two, giving themselves extra time without facing repercussions. Be sure to get clarification on the expected timeline before you commit.
5. Investigate Post-Sale Support
Buying a property doesn’t end with taking possession. Reliable post-sale support is essential. Most buildings come with a warranty or guarantee, meaning the builder should respond to issues that arise shortly after possession. Unfortunately, some builders become unresponsive once they’ve collected the majority of the payment.
If you’re considering a builder known for poor post-sale service, you may encounter frustrations down the line. Check feedback from other buyers about the builder’s post-sale service. Are repairs handled quickly? Are maintenance requests addressed? This can be a valuable factor when evaluating your options.
Extra Tips for NRIs Buying Property in India
Some NRIs worry that being too picky might limit their options. However, India has many reputable builders who follow high standards in construction and service. Well-known companies like Hiranandani in Mumbai are known for quality construction, punctuality, and reliable post-sale service. While they might be more expensive, these properties usually retain their value for decades.
Beware of Builders Who Frequently Change Company Names
If you notice a builder frequently changing names between projects, consider this a red flag. Changing names can make it difficult to track past projects and could indicate they’re trying to avoid accountability. Reputable builders generally maintain their brand across projects to build buyer trust and justify premium pricing. Fly-by-night builders, however, often change names to separate themselves from past issues.
Conclusion
In conclusion, NRIs looking to buy property in India should focus on the builder’s reputation and track record above all else. A trustworthy builder will ensure a high-quality project, while a problematic builder can turn even the most attractive design into a nightmare. Buying a property is often one of the biggest financial decisions you’ll make, so take the time to check the builder’s reputation, RERA compliance, quality of past projects, punctuality, and post-sale support.
By focusing on these essentials, you’ll be more likely to secure a property that’s not only well-constructed but also retains its value over time. With the right research and careful selection, you’ll find a builder who prioritizes quality, reliability, and customer satisfaction, making your investment safe and rewarding.