Real Estate Regulation and Development Act (RERA) was came into force on 1st may 2016. It has been more than a year since the RERA was introduced and it is yet to be enforced across all over the country. Many State governments have delayed to regulate this act.
Pankaj Kapoor, MD, Liases Foras says that “Maharashtra has fully implemented RERA and Madhya Pradesh is working on this, but there is very much slow process in other states regarding RERA”.
Samantak Das, Chief Economist and National Director, Research, Knight Frank India says that out of the 25000 odd projects under RERA across the country 62% are from Maharashtra.
Bengal has on a different route and introduce his own housing law i.e. Housing Industry Regulation Act (HIRA).
Dhruv Agarwala, Group CEO, Proptiger.com says that it’s the starting period of RERA in the country so there is no purpose in focusing on its slow implementation. According to him and RERA real estate will be a totally different industry in 3 or 4 years from now.
“Recent judgements by Maharashtra RERA—some of the judgements came within 30 days of filing complaint— have been successful in restoring buyer sentiment in under-construction projects,” says Das.
RERA has made real estate sector totally transparent like builder can no longer give false promises to home buyer regarding size, locality etc . Home buyers can now see the status of the project, units sold, possession date ,etc on the RERA website. RERA website have all the details of ongoing project which makes buying property easy for buyers.
The impact of RERA is that the developers stopped indiscriminate launches, they are now cautious about new projects and make sure to take all the approvals before any launch. The supply has now begun grabbing again , the industry is getting organised now and the supply of the property will increase soon. This all is going to happen with the help of RERA . RERA is actually helping to expand the market by opened up the opportunity for good and small builders, they can take credit from financial institutions.
RERA has helped the buyer from the builder in extensions of possession date . If there is delay in possession without any genuine reason than RERA imposed stiff penalty on builders. There are several projects in which builder neither give possession nor give a particular date regarding possession so in these types of cases RERA help buyer from builder and RERA will also help to reduce the corruption in the sector of real estate.
According to Agarwal several builder will deliver the possession before the date fixed under the RERA rules , but accepting verbal commitment from builder will be risky for home buyers . So before buying buyer would make sure that the project is RERA approved and buyer should take all the commitments made by the buyer in writing.
This is not compulsory that all RERA registered projects are investment worthy ,there are many projects registered under RERA on which investing money will become the worst decision of your life like in the stock market there are many companies which are registered under SEBI but investing money in these companies is the waste of money so there are many RERA registered project that may not suit you.
Since the genesis of RERA implementation, the picture of Real Estate sector in India has drastically changed. Now buyers at least have one regulator where they can approach for their grievances and on the other side Builders have certain regulations to comply with which ensures the transparency and safety of all the stakeholders.