If you noticed the advertisement for HDFC Red and thought that the new property portal listed properties approved by HDFC Ltd, you may be mistaken. Like other property portals, such as 99acres.com, Makaan.com and Indiaproperties.com, HDFC Developers Ltd (HDFCDL) has recently launched a property portal, Hdfcred.com, for under-construction projects.
While any developer can register a property on Hdfcred.com, that is not the case with the bank’s list of approved projects.
What’s bank’s list of approved properties
Most banks, including State Bank of India, Central Bank of India, ICICI Bank Ltd and HDFC Bank Ltd, have such a list. Properties figuring in banks’ lists are considered trustworthy since banks do their due diligence before including one. Says B.N.S. Ratnakar, general manager, Central Bank of India, “Usually banks approve of projects that are saleable in the market. Banks also look at the developer’s capacity to complete the project.”
Also, banks usually sanction loans on the properties listed with them. In fact, prospective buyers can check whether the property they have narrowed down upon is in any bank’s list of approved properties.
If you are a prospective buyer, getting access to the list is simple. All you need to do is visit your bank’s branch and ask for the list of approved projects. The bank executive will ask for your preferred location and the budget. Accordingly, he will shortlist four-five names in that area where you can get an apartment in your budget. Depending on the list, you can visit the site to know more about the project and amenities.
Should you trust the list? If a particular project is in a bank’s list, it indicates the project is a safer bet. “But you cannot trust the list completely as banks cannot take the guarantee in case of delay in possession,” says S.K. Sayal, director and chief executive officer, Alpha G: Corp, a New Delhi-based real estate firm.
What’s the new site
Launched in December, the portal has listings of primary properties in under-construction residential projects across Delhi-NCR, Mumbai, Pune, Hyderabad, Bangalore and Chennai. The portal gives the name of the project and other related details such as price points and area specification, just like other property portals. It also allows you to compare between projects and gives the expected possession date, too.
Says Renu Sud Karnad, managing director, HDFC, “As an information gateway, it will give information about the surrounding infrastructure and amenities too.”
What it doesn’t offer: A majority of properties fall outside the scope of Hdfcred’s listings since it does not list properties in the secondary market, in other words properties on resale. These constitute at least 60% of all market transactions.
The secondary market also happens to be the one where the buyers are most vulnerable—problems such as lack of clear titles and other frauds abound. Says Sud, “Unlike other portals, Hdfcred.com limits itself to the primary market. As secondary market remains unorganized, we are not looking into it.”
What to do
In general, no portal can ensure timely delivery and a transparent deal. You can use these sites primarily to get an idea about the prevailing prices and options in the market.
“The bank may not approve projects listed on the portal. You may not get loans from the bank for the project where you decide to buy,” says Vineet Singh, business head, 99acres.com.
In terms of running a check on the credibility of a project, banks’ lists can give you an indication, but its better to run other checks as well before finalizing a project.
Illustration by Shyamal Banerjee/Mint