Careful while buying commercial space in Group Housing projects

With hundreds of “Group Housing” projects coming up in Noida and Greater Noida, the demand for commercial space is bound to go up. Almost every group housing project has space for commercial activities and developers have constructed shopping complexes and/or mini malls inside the societies which are open to outsiders. Average population density of these societies is above 4000 and investors are trying to cash in on the opportunity.

While there is no harm in purchasing a commercial space in group housing project, one must do due diligence of the property.

The Risk: 

Out of greed, most of the Noida / Greater Noida builders have violated “U. P. Apartment Act 2010” and have encroached upon buyer’s common areas. Most of these upcoming commercial areas were planned much after project was sold. Developers have sidelined resident’s concerns and have risked their safety and security. These commercial space when open to outsiders are big threat to security to the residents.

These layout plan changes and encroachment on common areas are not going down very well with the home buyers. With increasing consumer activism in real estate and favoring judgments under U.P. Apartment Act 2010 on layout plan changes from Allahabad High Court, buyers association are not hesitating in opposing such commercials.

The Logical Buyer did a random check and found that most of the big builders have also violated the norms. While some of them have replaced play school to with new commercial space, others have shrunk club house to expand the mall. One of the renowned builder went to next level and encroached upon the society’s peripheral road. Residents says this commercial space is a nuisance for them as they have to exit society and re-enter from entry gates in absence to peripheral road. Residents are already planning to move High Court to take a stay on such structures.

In another Noida project, after entire commercial area was sold out, builder went ahead and planned a new commercial area. This make old commercial useless as new one is open to outsiders too.

The Solution:

While not all the commercial properties may have legal issues, one must be careful while making his purchase. Buyer should ask the developer for the old as well as new layout plan and ensure your property exist in old approved layout plans.

Before making a purchase, one should speak to the residents and find out if they have any objection to the layout plan changes. Buyers should also do due diligence and ensure the property in question is not disputed.

 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.