Realty sector positive as RERA boosts homebuyers’ confidence in Maharashtra, says survey
Recent findings, there seems to be a significant improvement in sentiments across all the stakeholders in the property marketmumbai Updated: Feb 17, 2018 11:57 IST
The Maharashtra Real Estate Regulatory Authority (MahaRera) has played a significant role in boosting the sentiments in the real estate sector, says a survey.
This is significant considering that the sentiments of developers and home buyers play an important role in the realty sector.
The findings have been unveiled in the ‘Real Estate Sentiment Index,’ a joint study by the Federation of Indian Chambers of Commerce and Industry (FICCI), National Real Estate Development Council and international property consultant Kinght Frank. As per the findings, there seems to be a significant improvement in sentiments across all stakeholders in the realty sector.
The earlier two surveys over the last six months had showed negative sentiments, which has now changed to positive.
According to Samantak Das, chief economist and national director-research, Knight Frank India, MahaRera has played a vital role in bringing about the change in sentiments.
“With more than 79% of the cases being decided in favour of the consumers, there is growing confidence among homebuyers to make purchases. This very confidence in turn is good for the builders, as it means business for them,” said Das.
“Builders are looking to RERA as a stage for conducting business in a better way. There is positivity even among the banks and financial institutions as they have an exact idea of the project and when they could get their money back,” he said.
Das said apart from RERA, the growing clarity in Goods and Service Tax (GST) is also making things easier for the realty sector.
Earlier last month, Knight Frank while analysing 60 rulings from September 1 to December 6, 2017, found that 47 rulings, or 79%, were made in favour of consumers across Maharashtra, 11 (18 %) swung in favour of builders, while the remaining two, accounting to only 3% were neutral.
Builders also credit RERA for bringing in transparency.
Amit Ruparel, Managing Director, Ruparel Realty said, “It has made builders more focused on the project in terms of execution. In addition, we also see increasing number of private equity players in the market.”
For years, buyers were taken for a ride by the builders and many had to wait for years to get possession of their apartments. However, now builders need to give full disclosure of their projects and also compensation in cases of delay. This has also thrown fly-by-night builders out of business.
How RERA is benefitting the stakeholders
1) Will know when they will get possession
2) In cases of late possession, could be compensated
3) Funds cannot be diverted. Hence, buyers’ money is utilized for project.
1) Eliminates majority of fly-by-night operators, leaving only the competent ones in the fray.
2) Inculcates professionalism and accountability.
3) Builders get access to institutional funding.
1) Do not have to grapple from an opaque system.
2) Complete transparency facilitates better planning as they know about the progress of the project.
3) Get a time guarantee on getting money back.
First Published: Feb 17, 2018 11:56 IST