The Real Estate (Regulation and Development) Act, 2016, which is set to be implemented by the Centre on May 1 2017, is one of the most awaited developments for the real estate market. The sector, which has been grappling with red-tapism, corruption, and fraudulent practices is expected to see a breakthrough post the effective implementation of the Act. The formulation of the Real Estate Regulatory Authority (RERA) under the Act is anticipated to instill transparency, fair-play, value offerings and credibility into the sector. Just three days ahead of the development, the real estate industry is anxious to see how the Act unfurls.
Here are the top expectations from industry stalwarts:
Manoj Gaur, Vice President, CREDAI – National and MD, Gaursons Group
Post the implementation of RERA, all project approvals will have to be in place and the agreement signed with buyers will include the interest and the penalty clauses laid down in the Act. The statute now demands that builders sell the unit on the basis of carpet area and therefore, there is a need to specify common areas and the parking areas separately. At the CREDAI level, too, the apex body of developers is holding training sessions for developers to educate them on the changes expected in the new business environment.
Deepak Kapoor, President, CREDAI-Western UP and Director, Gulshan Homz
Homebuyers have been long waiting for RERA which promises to safeguard their rights and interests. With RERA in place, there will be a regulator in every state which will monitor all the transactions and redress buyer grievances. The regulations are fair and developers have already started working in accordance to RERA. This is likely to improve the demand and supply dynamics in the sector.
Rajesh Goyal, Vice President, CREDAI-Western UP and MD, RG Group
Developers are certainly well prepared for the new era, post implementation of RERA. The Act is certainly going to impact both buyers and sellers. Developers who are not able to deliver on their promises would be automatically filtered out, reducing the existing supply in the market. The sector would be much more organised than before and developers would be answerable at each stage of project development. Buyers, on the other hand, would be assured of timely deliveries or assured penalty charges in cases of delay, but simultaneously would see the property prices going up because of drastic fall in supply.
Gaurav Gupta, General Secretary, CREDAI-RNE
Since the Act ensures and promotes fair dealings in the real estate sector with highest degree of transparency, buyers will feel much secured while transacting now. This in turn will boost end-user demand. RERA has been drafted and executed to safeguard the interest of every buyer. Once the Act becomes fully functional in each state, grievances will not remain unanswered, and will come with a definite solution. This will help in rebuilding the lost demand in the market and allow the realty sector to be an ethical contributor towards the Indian economy.
Anubhav Aggarwal, Managing Director of RNA Corp
RERA will bring a paradigm shift in the way business is conducted in the real estate industry. Although the act has protected end user’s interests efficiently, the developers see a ray of hope under the section 7 of its rules which states that the extension of project registration demands for an explanation on the reasons for the delay. Here the builder can state all the reasons, even the ones involving sanctions, which has been a major road block in timely delivery of the projects. On one hand, it will bind the developers under strict adherences, due to which they may suffer initially, but on the other hand, the Act also promises that the concerns of developers will not be completely neglected.
Avneesh Sood, Director, Eros Group
With RERA to be implemented in full scale now, developers opine that it would help in improving the overall image of the sector. Infusing transparency and cracking a whip on illegal trading, the Act would augment buyer’s confidence in the market paving way for growth.
Ashok Gupta, CMD, Ajnara India Ltd.
Soon with the nationwide implementation of RERA, we will see a completely different scenario in the sector. In fact, developers have been gearing up for RERA ever since it became an Act in the parliament and have been working based on the norms, excluding the limitations.
Pradeep Aggarwal, Co–founder and Chairman, Signature Global
The Indian real estate sector will shape up in a different manner now. With RERA on board and implemented in full force, each state will have a regulator in place to safeguard the interests of the buyers and promote fair dealings in the sector. The housing demand in particular, will catch up momentum, allowing better performance of the sector. Apart from everything else, the one thing that will infuse positive buyer sentiment is the impact of RERA on project delivery timelines.
Ashwani Prakash, Executive Director, Paramount Group
The regulatory act (RERA), has been able to arrest the uncertainty in the real estate sector. The mere passage of the bill had given a lot of clarity and made real estate dealings more transparent, thereby bringing confidence among investors and end users. Post the proper implementation of RERA, the market is bound to grow at a steady pace. Single window clearance system, once implemented across the country, will allow RERA to function smoothly, without which there might still be some barriers to growth.
Dhiraj Jain, Director, Mahagun Group
RERA’s prime motive is to curb the irregularities persisting in the real estate sector and protect buyers’ interest. There are strict guidelines in the act against developers who are unable to deliver projects on time. However, we cannot deny the fact that developers today are under severe pain of not getting the obligatory clearances and approvals on time; and if this continues then they will be axed for no reason. Thus, the government must ensure the passage of single window clearance, so as to allow the sector to work in a much systematic and organised manner.
Vikas Bhasin, MD, Saya Group
Developers who had been working fair and square need not worry about the circumstances post the implementation of RERA because adhering to norms and guidelines is a general business practice and that is what RERA is all about.
Rakesh Yadav, Chairman, Antriksh India
RERA is aimed at protecting the interests of consumers, and also seeks to promote fair play in real estate transactions and timely execution of projects. With this Act in place, every state will now have a regulator who will be continuously supervise and monitor real estate activities. Moreover, the projects will now be completed on time and developers will have to submit all the layouts, plans and documents with the regulator who will ensure transparency and hence, customers will feel more secure while transacting.
Atul Chordia, Chairman, Panchshil Realty
RERA will help customers differentiate top brands at a product and quality level. Customers will now be able to compare projects not just on the basis of offers, delivery timelines and amenities but at a deeper level, such as the technology that is being used, the quality of materials being procured, the latest techniques in use - such as dry construction, offsite bath-pods, energy and safety compliances, and other such aspects which are fundamental to a great product.
Munish Doshi, Chairman, ACME Group
With RERA, the face of the sector will change drastically. The dynamics of real estate players will be more aligned to the rules laid by the Parliament under RERA. The buyer and developer relationship will also accelerate due to the transparency that will come owing to compulsory paper work to be done by both parties leaving no ambiguity. This policy initiated by the government will help in the growth of a much organised format in real estate sector going forward. All the practices and processes will get smoother, transparent, streamlined, bringing the sector in a brighter light and above all creating a general atmosphere of trust and professionalism amongst developers, regulators and buyers.