Homebuyer appeals to Lokayukta to take action against Housing Department for failing to respond to RERA complaints

A homebuyers has requested that the Lokayukta take action against the Housing Department for failing to respond to RERA complaints.

Shailesh Charati stated in his complaint that despite being notified by the authorities, the secretary, deputy secretary, and undersecretary of the Housing Department, in addition to the RERA member secretary, had not taken the necessary action to prevent illegal construction and sale of apartment units.

Charati explained that he had notified the RERA of an illegal apartment development in JP Nagar in April 2021. On the RERA website, he had stated that the promoter had misrepresented the building as a separate project but had withheld information about the litigation. He approached the department secretary to initiate action under Section 26 of the RERA Act after his complaint was disregarded by RERA.

In his objection to the Lokayukta, that's what charati expressed, notwithstanding five updates and over seven months after his grievance, the Lodging Division had neglected to make a move. " "This lack of action is assisting the chairman and K-RERA members in continuing their work without regard for the law and denying homebuyers justice," he added.

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Rental hike hits Bengaluru home seekers houseliv Realty

 If you are looking to rent a property in Bengaluru this year, brace yourself for an unprecedented rental surge. After making a consistent recovery from the pandemic slump since March 2022, rents in the city are leaping forward. 

“I have seen a property at HRBR Layout in Kalyan Nagar, worth Rs 20,000 in rent being rented out at Rs 40,000,” said a RERA-licensed broker, who did not wish to be identified, adding that this is not an isolated case. “Landlords are greedy. It doesn’t mean properties are improving but demand is high and landlords are hiking rents,” he pointed out. 

A tenant from Whitefield who also wished to stay anonymous, agreed. When his two-year tenancy contract expired this year, he was faced with a 57% jump in his rent from Rs 14,000 to Rs 22,000, for his 1BHK home. Unable to afford it, he was compelled to seek refuge elsewhere in the area. 

“People who already paid a higher rent last year will not see this kind of 30-40% jump this year. People who are coming now, moving into a property which was either not occupied or occupied at lower rent will see a jump.

The Covid-19 pandemic exacerbated a demand-supply mismatch of housing units in India’s Silicon Valley, as restricted mobility disturbed construction cycles by six-eight months. On the other hand, with companies calling employees back to offices, demand for rental housing continues to grow, giving landlords the upper hand.

“In the last five years, demand has been way ahead of supply in the case of Bengaluru,” said Vivek Rathi, who heads research at property consultancy Knight Frank India. 

“The highest demand-supply mismatch is in Bengaluru and that is why the highest rent increase is also in here. Now, with offices opening up, people are returning to town leading to a greater tenancy demand, while supply has not kept up,” Garg argued.

A landlords’ market

From demanding resumes to income records, besides enormous deposits, email approvals for guests to stay over and other stringent curbs - Bengaluru’s landlords have turned rather infamous. 

To add to tenant woes, home owners are now blatantly demanding higher-than-listed rents, alongside listing different rental prices on multiple property tech platforms after receiving queries from interested tenants.

“Properties I went to look at within a day or two of being listed on online brokerage platforms were already booked. Landlords then openly proposed that I pay more to rent the property,” attested Harsh Vitra, an engineer from Mumbai who moved into the city last month. “I was also grilled with multiple questions on topics ranging from my religion to caste, eating habits and if I planned on bringing female companions home,” he added.

Any end in sight?

Industry veterans gauge it could be three to four years before supply begins to inch closer to demand levels, thereby cooling rent inflation for residential properties in the city. 

While construction costs are moderating, interest rates remain elevated, which is prompting both parties - developers and buyers - to adopt a cautious approach, explained Rathi. Furthermore, any project undertaken today must navigate an average construction cycle of three to five years before completion, he added. 

Team Houseliv

BIGGEST HOUSING BOOM IN 15 YEARS HOUSELIV

The housing sector in India has been witnessing a significant boom in recent times, with various factors contributing to the growth. A Capital Advisors firm in the country has reported that this boom is probably the largest in the last 15 years. The firm’s Managing Director and CEO, Vipul Roongta, has attributed this growth to factors such as affordability and the aspiration of customers to own homes.

Roongta also noted that the residential real estate market has revived strongly after undergoing significant pain due to the new realty law RERA and demonetisation. The accountability enforced by RERA, which holds developers accountable for completing projects and can result in imprisonment for defaulters, has been a significant contributor to the sector’s revival.

To cater to the growing demand for affordable housing, the firm has launched a $3.2 billion real estate fund. 85 per cent of the capital has already been committed. Last year, housing sales in India reached an all-time high of nearly 3.65 lakh units across seven major cities, according to property consultant Anarock.

Kuldip Narayan, Joint Secretary, Union Ministry of Housing and Urban Affairs, said the size of the urban sector will double in the next 25 years.

He said the requirements for facilities, residential spaces, commercial spaces, and urban infrastructure would double.

“With increasing urbanisation from 12 to 30 per cent, the next 20 years could see more development than in the last 50 years,” he said.

Narayan also alluded to the government’s emphasis on changes in construction technologies highlighting the government’s “consistent stand on reducing carbon emissions and improving energy efficiency” and encouraging the industry to “adopt better and resource-efficient construction technology”.

Raj Menda, joint chairman at  FICCI Real Estate Committee and Corporate chairman at a real estate firm, said, “After consecutive years of slowdown in the sector, last year witnessed unprecedented growth by reaching a new historical height in the commercial office segment”.

He added the extraordinary demand for flex space from medium and large enterprises further propelled the sector’s growth.

Arun Chawla, director general at FICCI, said, “With an increase in urbanisation and household incomes, the demand for residential real estate has seen an unprecedented surge. As a result, India is now among the top 10 price-appreciating housing markets internationally.”

In conclusion, the housing sector in India is experiencing a significant boom, and the demand for affordable and mid-income housing remains strong. The government and private sector are working towards meeting the demand and providing the necessary infrastructure to support this growth.

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