RERA, one of the most awaited reforms in the real estate sector has finally materialised as it will streamline the entire sector over the next few years. Apart from ushering in transparency in all transactions, RERA will protect the interest of all concerned stakeholders. Such a regulatory body was needed for the real estate sector, which was facing challenges on multiple fronts. This will make the sector more accountable, vibrant and competitive and will eventually weed out players, who are yet to follow industry best practices and good governance.
How developer-friendly is RERA? Do you think it has turned out to be a win-win bill for both buyers and developers?
Majority of the top developers are already following the guidelines under RERA because we always position customers at the core of every transaction. The RERA will foster the relationship between builders and customers by building trust and confidence through transparent dealings. It will also make the developers accountable to the customers. In the process, the institutional fund flow into the market will improve. For long, FDIs were not too keen on exploring the Indian real estate market and with RERA in place, we expect a shift in their approach towards us.
Will realty demand revive post RERA implementation?
These are just initial days and a lot of speculations are being circulated in the market. But such speculations have no impact on the established players. Although there could be a fluctuation in prices, we are seeing an upward trend. With RERA making the industry organised and better equipped to deal with the customers, the demand could potentially go up in the second half of this year.
Were there any new launches you were holding back in anticipation of RERA? Do you plan to go ahead h the launches immediately post the implementation?
We have seen a kind of stand still in the sector for the last six months or so. Buyers are also waiting for RERA implementation. Like all developers, we also have a couple of project launches in the pipe line. Currently, we are awaiting clarity from the authorities. Bangalore has been a much-disciplined market and the implementation of RERA will sail through here.
Is RERA going to impact property rates in your city/cities?
Yes and we believe for the better. RERA is all set to transform the existing real estate ecosystem in the country. With its enforcement on May 1st, 2017 the industry will witness more traction.
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?
Whenever new rules and guidelines are introduced in any sector, the stakeholders concerned will take time to comply and follow them. During this period, it becomes imperative for every player to remain cautious. The road ahead is and must be transparency. Today, the biggest problem the real estate industry is struggling with is trust deficit of the home-buyers. The implementation of RERA is bound to witness greater transparency and bringing accountability of developers, which in turn will boost the trust and confidence of the home buyers in the market.