by 99acres Bureau |May 3, 2017
The Real Estate (regulation and development) Act is finally being implemented. What are your views regarding the same?
As they say ‘Change is the only constant’ and RERA most certainly looks like a welcome change. It intends to bring about a paradigm shift in the working of real estate sector while safe-guarding the interest of the investors, buyers and also address developer’s concerns. The new law is likely to make markets steadier due to the single window clearance process. The momentum will also infuse positive buyer sentiment which will in turn improve the demand and supply dynamics of the sector.
How developer-friendly is RERA? Do you think it has turned out to be a win-win bill for both buyers and developers?
A lot of people see RERA as consumer-friendly. In a way it is not only consumer-friendly but also beneficial for developers. It promises to address the concerns of both consumers and developers. It will give all developers a level field and will drive them to ensure timely delivery which will instil encouragement within the buyers and simultaneously help the sector grow.
Will realty demand revive post RERA implementation?
With the dust of demonetisation finally settling, buyers’ sentiments are positive in anticipation of higher transparency and efficiency. Also, genuine requirement for homes coupled with the advent of affordable housing has increased housing finance options, which paves way for higher demand.
Is RERA going to impact property rates in your city/cities?
The property prices are not likely to come down till the time ready reckoner rate is not reduced. The price of the land is high and that needs to be reduced as the cost of construction is high. Also there is a premier on stamp duty and there Transfer of Development Rights (TDR) premier along with a rate of construction so the price will not come down. Until and unless the price of ready reckoner rate does not decrease the price will not fall. Once the TDR and ready reckoner prices decrease it will solve the problems to a great extent.
What is the road ahead? What is it that still needs to be done in order to hit the target that RERA was conceptualized for?
RERA is a logical sketch drafted after due consideration. It has certainly pointed the real estate sector in the right direction, but it’s only after we have walked down that road and analysed each of its aspects practically, will we understand if more work is needed to hit the target and address shortcomings, if any.
Publication / Source: 99acres.com