The RERA Act shall bring in complete transparency; it shall also support discipline, accountability, customer centricity and command compliance in the real estate sector. RERA will safeguard the interest of the homebuyer and ensure timely delivery of projects. The real estate will now move from being an unregulated and unorganised one to a streamlined one. RERA as a policy measure has the potential to revive 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?
We believe it will benefit all the three stakeholders - industry, developer and the buyer. It will help the industry in terms of governance and transparency. There will be project efficiency and robust project delivery. There will also be an improvement in standardisation and quality. It definitely will attract higher investments and private equity funding in future.
For the developers, there will be a common system in place, consolidation of the sector and finer corporate branding for a lot of key players. It will also lead to higher investment and an increase in organisational funding.
The RERA Act is all about safeguarding the interest of the buyers and they shall receive the maximum benefit. To begin with, there will be a complete transparency of sale with safety of money. The quality and the time efficiency of the projects will increase. There would be balanced agreements and treatment for the buyers.
Will realty demand revive post RERA implementation?
RERA is likely to bring in more transparency and shall lead the sector to be able to attract more FDIs. This is set to improve the feasibility of financing options available in the market, leading to increased investments and thereby, a more efficient and buyer friendly system. This will definitely lead to an increase in realty demand post its implementation.
Is RERA going to impact property rates in your city/cities?
Property prices are not connected to RERA. It is determined by demand and supply in the market. Given the scenario right now, we do not think prices will see an alteration post the implementation of RERA. However, margins are expected to decrease as developers will have an additional layer of costs on compliance and monitoring.
What is the road ahead? What is it that still needs to be done in order to hit the target that RERA was conceptualised for?
There are a few guidelines that the developers and the investors need to follow in order to implement RERA efficiently. The developers should institutionalise periodic RERA projects; explore quality design development, project execution and monitoring concepts. The investor should revisit, review and reinvent existing commercial arrangements and institutionalise periodic RERA projects again. Basically, they should both ensure that the project is RERA assessable.