Most builders usually don’t commit the exact project delivery time in the contract terms between them and the property buyers. This is usually done to avoid penalties due to delay in possession. What most builders, especially those associated with commercial real estate, do is start a project with whatever amount they get after the initial payment by the buyers.
However, these funds are usually not enough to continue the work and pay for goods and services on time. This in turn stalls the project for an indefinite period, which could be anything from a few weeks and months to even a year or more depending on the time it takes to finalise all the bookings and secure funds for the project. This is certain to cause stress and agitation amongst buyers, which eventually leads to denting the reputation of those builders in the eyes of buyers, investors, and financers alike.
Commercial real estate developers need to realise that construction pace of a project and timely delivery of commercial space to respective buyers are key to the success of their project and improving their market reputation. However, not many developers pay heed to this fact and are often seen giving more importance to things that make little difference to the success of their project. To understand this better, let us discuss the issue with an example.
We are going to talk about a shopping mall in Raj Nagar Extension, which goes by the name of Himalaya City Center. One thing that they did well is honouring time – both theirs as well as their customers’. They continued working on the same construction pace from start to finish. How they managed to do it is the question though?
To begin with, they didn’t rely on initial booking amount that buyers paid them for commercial shops in Raj Nagar Extension. They made another line of credit available to them with the help of a financial institution. They didn’t have to halt the construction process at any stage. Also, by completing the construction of the high-street retail project in Raj Nagar Extension on time, they were also able to honour the word they had given to buyers. What this also resulted in is creating a happy and satisfactory experience for all the investors and buyers. And the developers of the first shopping mall in Raj Nagar Extension, Ghaziabad, enhanced their market reputation as well in the process. That’s what you call a win-win situation.
There is a lot to learn for all the other developers from this story. Those that are not able to deliver to their promises of timely possession are often on the receiving end from buyers and investors. Timely delivery of projects is especially very important for builders who are still trying to find their footing in the market. Not honouring time and the sentiment of buyers could land a harsh blow to their prospects. Developers can earn the trust of buyers by delivering their projects on a timely basis. And trust in real estate, like any other industry, is paramount for long-term success.