How to check a builder's reputation and past projects

When you book an under-construction flat, you are paying for something that does not exist yet. Whether it arrives on time, at the quality shown, with clean paperwork, depends on the builder. Hyderabad has many established developers and many new ones, so check the builder as carefully as you check the location and the floor plan.

What the builder's record affects

The first thing is delivery. Buyers who suffer most in this market are the ones stuck with a delayed project, poor construction or a legal dispute over the land. A builder who has handed over several projects on time is more likely to do it again.

The second is resale value. Flats by a well-regarded builder usually resell for more. In areas like Miyapur or Nallagandla, a 2BHK from a known builder may sell at a premium of around 10 to 15 percent over a similar flat from a lesser-known one in the same locality. Treat that as a rough indication and compare actual resale listings before you rely on it.

The third is the loan. Lenders are more comfortable with projects from builders they already know, because the risk of a title or delivery problem is lower.

Every builder has to register a project under RERA, large or small. Registration alone does not tell you much about the builder. Established developers usually have the systems to keep approvals, timelines and filings in order. A first-time builder may be perfectly sound, but you have less evidence to go on, so check the approvals and the title more closely.

How to check a builder

1. Look up the project on the state RERA website. Note the registration number, the committed completion date and whether progress updates are being filed. Look at the same builder's earlier projects on the portal and see whether they finished on time.
2. Visit a project the builder completed a few years ago. See how the building has aged, and whether the clubhouse, gardens and other promised amenities exist and work.
3. Talk to people who live there. Ask about construction quality, how long possession took and how the builder handled complaints. Residents will tell you things no brochure will.
4. Read online reviews and buyer forums. Give weight to the same complaint appearing many times, and ignore one-off rants.
5. Ask how the project is funded. A builder with sound finances is less likely to stall midway. Which lenders have approved the project is a useful sign, since a lender does its own checks, but it does not replace yours.

Paying more for a known name

A reputed builder usually charges more. In our view the extra is often worth paying for an under-construction flat, because what you are buying is a lower chance of delay. For a ready flat with its occupancy certificate you can inspect the finished building yourself, so the name matters less.

If you want to know how a particular builder's past projects have turned out, ask a relai advisor.