Recently RERA (Real Estate Regulation and Development) Act, 2016 completed a year on May 1. Although certain sections of the Act were introduced on May 1, 2016, it came into force in its entirety on May 1, 2017.
Before RERA, there was no real estate regulator in the country due to this many builders took homebuyers for a ride. Delays were rampant and homebuyers usually did not have a reliable source to address their grievances.
Many home buyers believe it has given proper shape to the sector and on a positive route. Most states and Union Territories (UTs) have followed a quasi-implementation route.
“RERA has brought us a ray of hope; it guarantees timely completion of projects and delivery to the buyers. This mean, we need not worry about the project”, said Shubham Ahuja, a homebuyer.
“The provision which says that a developer cannot launch or advertise a project before registration with RERA haring information project plan, layout, government approvals and etc: again work in favor of the buyers,” added Ahuja.
On the other hand, the developer also believes it was a positive move which will reap better result in the coming time ahead.
“The act ushered a path for the developers to regain the trust of its buyers. The changes brought in by the implementation of RERA have allowed developers to freely attract buyers towards projects which have occupancy certificate. The focus now is on end-users which in turn have added importance to quality over quantity. Developers across the real estate industry are strategizing their business portfolio to align with the emerging reality of RERA.”- Mr. Ravish Kapoor, Director, Elan Group
“The Real estate regulatory act (RERA) is India’s first serious attempt to regulate an industry not known for its ethical business practices. The act is changing the entire landscapes of the real estate and redefining the process of how sales happen in India. Every segment associated with it is unlearning the old ways of operating and aligning to the new terms/process which is RERA specific. This has boosted the buyers confident and has brought transparency in the sector with encouraged investment.”-Mr. Rahul Singla, Director, Mapsko Group.
As per Knight Frank report, currently, more than 25,000 projects have been registered under RERA across India.
“The developers are now getting more careful in promising something and there are more written commitments than verbal promises. Many states have registered themselves, while several states still need to notify the rules under the Act. However, the act will majorly be ensured that there is a flow of institutional funds, making the end-user the real winner and protect them from unscrupulous activities. RERA, along with GST will make sure that the market is largely driven by end users. At BDI, all our upcoming projects are RERA registered to benefit our buyers. – Mr. Ssumit Berry, Managing Director, BDI Group
It is hoped that the act will make real estate purchase simpler, by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act.