Many real estate developers say RERA legislation is a step in the right direction as it will remove the chronic issue of late delivery of housing projects and eliminate the not-so-serious players from the business. It will also inject much-needed capital into the real estate sector and restore the confidence of homebuyers , a survey-based report by FICCI and Grant Thornton says.
Most developers are also in wait and watch mode to see how the provisions of the new Act pan out and impact both the developer community and the sector. They also hope that it does not become another tool for increasing red tapism in the process of obtaining approvals. “The compliance of this Act should not become one more layer of approval to be obtained but rather help in easing out the entire approval process,” they say.
The recently cleared Real Estate Regulatory Act (RERA) will bring in transparency in real estate transactions and help reduce the number of litigations in the sector
Respondents of the survey, Real Estate Regulation Act, 2016 (RERA) - Are we ready? felt that the new Act would improve governance in the sector and attract foreign and domestic investments in the short term. When asked what changes they expected in their real estate dealings after the implementation of RERA, more than 60% felt there would be more transparency.
Around 40% of the respondents felt that implementation of RERA would help in timely delivery of projects since 70% of the sales proceeds will be set aside in an escrow account by developers and also eliminate non-serious players from the sector. More than 40% of the respondents believe that maximum impact will be in the area of project planning and construction.
As many as 50% hoped that the lending options from lenders would improve and availing finance will be easier.