Monthly Archives: May 2017

How RERA and GST is shaping the realty sector?

With the new rules of RERA and GST coming there it is a general perception that it will bring the real estate sector on track. Increase in demand in the sector is expected and the prices will be likely to go down. Post RERA the general view is that the sector is going to be more buyer friendly and large cap real estate.

The recent government policy has generally improved the mood and has increased buyers confidence in the wake of government reforms happening recently. Buyer’s positive change of mood has lot to do with RERA policies towards customer’s long standing concern for better transparency and accountability in real estate transactions. With lack of trust and insecurities among the people earlier many people were hesitant to put their hard earned money to buy houses from developers because of the lack clarity and transparent policy to regulate the real estate market in case something goes wrong and they might get stuck in the legal process.

Centre’s focus on affordable housing and rate cuts have also encouraged the lower income home buyers. The interest rate has gone down and a positive recovery is very much expected in the residential sectors. RERA will boost the confidence of investors and will protect the buyers from fraud, false promises and violation of acts. Now buyers will be able to make informed decision based on the RERA and GST Bill. The right of consumers will be well protected and will encourage the investors as well.

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How will home buyers benefit from RERA?

  • Home buyers who use the services of realty agents and agencies will now be protected as the Act renders brokers and agents punishable if they do not abide with the regulator’s strictures ruling.
  • It will bring transparency, better governance and accountability to the real estate transactions and processes.
  • False promises and wrong delivery of real estate property will end.
  • Home buyers can approach the authority to settle disputes with errant builders.
  • Developers will have to sell flats based on carpet area and not super built-up area.
  • 70% of the money received from buyers be deposited in an escrow account and used only for the purpose of the development of a project.
  • The unfairly falsely allotted property buyers is entitled to receive compensation under RERA.
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Will RERA change the way real estate functions?

Definitely. With a promise of protecting the right of consumers and ushering the transparency The Real Estate (Regulation and Development) Bill, provides a legislation to protect home buyers and encourage genuine private players. Passed in March last year the long awaited RERA Act has finally coming into effect from May 1 where consumer is the king.

It will change one’s home-buying experience as the primary aim of the Act is to bring transparency and accountability from all stakeholders. Violation of orders of regulatory authorities may cause imprisonment of up to three years for developers and up to one year in case of agents and buyers . it will make mandatory for the builder to disclose details like approvals received, layout plans, court cases against them,registration etc.

Demand will improve as buyers will have increased confidence about investing in the property market. The real estate prices will remain stable now but rates could rise in the next six months. RERA will boost the confidence of investors. It will protect buyers who have purchased flats in the past. the RERA will provide relief to home buyers. It will help buyers get well-defined product typology and interior specifications. Therefore, Buyers will be able to make informed decision on a well laid-down information.

 

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