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How RERA will impact real estate prices?

How RERA will impact real estate prices?
  • General
  • Saturday 3rd June 2017
  • Author: Vikas Tawar

Highlights

  • Real Estate (Regulatory and Development) Bill- A Bill passed to protect the interests of consumers, to bring neutrality in real estate transactions and to take the time to implement projects in time.

  • Land acquisition in many places becomes an issue. Errand Builders often sell their projects to investors without the approval of the plans;

  • The biggest advantage to real estate companies will be their credibility.

Real Estate (Regulatory and Development) Bill- A Bill passed to protect the interests of consumers, to bring neutrality in real estate transactions and to take the time to implement projects in time.


Here is a look at the Real Estate Regulatory and how it will affect the real estate market. According to RERA, each state will set up its own regulatory rules to control the functioning of the regulator to the federal sector. Center for Union Territories including the national capital, has drafted regulations. While many states are still lagging behind schedule notification RERA rules, many have notified the rules and will begin a regulatory function. 
RERA seeks to resolve issues like delay, price, quality construction, title and other changes. The aim of this bill is to restore the confidence of consumers in the real estate sector through institutional transparency and responsibility in real estate and residential transactions, thereby increasing the reach of this sector in capital and financial markets. This bill will lead to the growth of this system of systematic methods through effective implementation of the project, professional methods and standardization.


Land acquisition in many places becomes an issue. Errand Builders often sell their projects to investors without the approval of the plans; however, unauthorized growth, poor quality, bad projects in litigation etc. are also big issues. 


How it will impact?


The new law, implemented by the Reserve Bank of India for the direct investment of real estate investment trust and transparency in the sector from 1st to 1st and to protect the interests of consumers, is being implemented by the Real Estate Regulation and Development Act (RERA). Experts believe that after the new law the housing demand is expected to recover. Also, this law will protect buyers from unethical activities. However, due to unquoted inventory, stability can be seen in property prices. 


The biggest advantage to real estate companies will be their credibility. Not only from banks and financial institutions but also from the market There will not be any problem in raising money. Due to paralysis, the bank will not refuse to lend to real estate companies. Apart from this, the NOC for government departments for builders will not be too much annoying. 


The advantages of real estate companies dependent on the rates market is also that the prices of houses sold under their projects will not be decided by the government or the regulatory authority, but they will depend on the market itself. Of course, after the coming of this law, only the buyer will not be the king, but there will also be transparency in the real estate sector. Even the builders will get the benefit of this law and it will be easy for them to take loans from banks and financial institutions. 


The implementation of RERA will increase the transparency in the real estate sector, as well as confidence in domestic and foreign investors. However, many problems can occur in the beginning of the implementation. Prices can remain stable at the moment, but in the next 6 months, it can increase by 10 percent. 


This is a very important decision for the country's real estate sector as this law will bring transparency in this area. At the same time, it is said that the time has come that when home buyers can breathe easily and can confidently approach them.

 



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