RERA to make the market accountable, bring in financial discipline
Real Estate

RERA to make the market accountable, bring in financial discipline

The implementation of the Real Estate Regulation Act (RERA) in the country has picked up pace, with 90 per cent of the state and Union Territories notifying the rules, according to a JLL analysis of the data provided by the Ministry of Housing and Urban Affairs, Government of India. Of these, 69 per cent already have operational sites, making it easier for stakeholders to access and register their projects. According to Ministry’s data, till 30 June 2019, 43,398 real estate projects and 33,270 real estate agents have been registered under RERA across the country. The analysis said, the actual impact of RERA, however, would be even more discernible over the next few years, as projects will meet delivery timelines mentioned in the RERA registrations and cases of effective dispute resolution between the buyers and promoters will increase. 
Ramesh Nair, CEO & Country Head, JLL India, said, “The key objectives of RERA – enhancing transparency, bringing in a financial discipline in the market and infusing accountability among stakeholder  would become the new norm if the Regulation is implemented effectively.” He added, “For the residential segment, RERA has played a level-playing field among the homebuyers and the developers. Consequently, India’s residential sector saw rejuvenation after an initial challenging phase. With regulation reinstating homebuyers’ confidence in the segment, markets witnessed robust recovery in sales in 2018. The resurgence in sales continued in first half of 2019 too.”
Sales of residential units increased by 22 per cent compared to the corresponding period in 2018. During the period between FY 2011-12 and FY 2018-19, the outstanding home loans increased at a CAGR of 18 per cent to Rs 19 trillion from Rs 6 trillion indicating strong housing demand.
The analysis mentioned that for the residential segment, RERA has so far played a level-playing field among the homebuyers and the developers. Consequently, India’s residential sector saw rejuvenation after an initial challenging phase. With the NDA government returning for its second term, RERA implementation will be effectively executed across the states, the analysis added. Reforms and measures to promote affordable and mid-income housing in the country so far will help homebuyers to invest into the market. 

The implementation of the Real Estate Regulation Act (RERA) in the country has picked up pace, with 90 per cent of the state and Union Territories notifying the rules, according to a JLL analysis of the data provided by the Ministry of Housing and Urban Affairs, Government of India. Of these, 69 per cent already have operational sites, making it easier for stakeholders to access and register their projects. According to Ministry’s data, till 30 June 2019, 43,398 real estate projects and 33,270 real estate agents have been registered under RERA across the country. The analysis said, the actual impact of RERA, however, would be even more discernible over the next few years, as projects will meet delivery timelines mentioned in the RERA registrations and cases of effective dispute resolution between the buyers and promoters will increase. Ramesh Nair, CEO & Country Head, JLL India, said, “The key objectives of RERA – enhancing transparency, bringing in a financial discipline in the market and infusing accountability among stakeholder  would become the new norm if the Regulation is implemented effectively.” He added, “For the residential segment, RERA has played a level-playing field among the homebuyers and the developers. Consequently, India’s residential sector saw rejuvenation after an initial challenging phase. With regulation reinstating homebuyers’ confidence in the segment, markets witnessed robust recovery in sales in 2018. The resurgence in sales continued in first half of 2019 too.”Sales of residential units increased by 22 per cent compared to the corresponding period in 2018. During the period between FY 2011-12 and FY 2018-19, the outstanding home loans increased at a CAGR of 18 per cent to Rs 19 trillion from Rs 6 trillion indicating strong housing demand.The analysis mentioned that for the residential segment, RERA has so far played a level-playing field among the homebuyers and the developers. Consequently, India’s residential sector saw rejuvenation after an initial challenging phase. With the NDA government returning for its second term, RERA implementation will be effectively executed across the states, the analysis added. Reforms and measures to promote affordable and mid-income housing in the country so far will help homebuyers to invest into the market. 

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