Transparency and every buyer's best dealer - this is what RERA can bring to a developer's repute along with the 'industry' status that the fraternity has always longed for! May 1, 2017, will always be recalled as a turning point in the history of real estate in India - when all states were asked to notify RERA rules.
With the Real Estate Regulation (Regulation and Development) Act, 2016 (RERA) becoming effective in the entire country from May 1, 2017, its implementation is likely to bring in transparency, discipline and confidence, which will reinforce consumer's trust in the sector.
National Real Estate Development Council (NAREDCO) Maharashtra took a special initiative of explaining the RERA rules and regulations to the various stakeholders in the real estate sector by organising a session where all members were present to understand the need and importance of the policy.
In the latest joint report by Cushman & Wakefield and Propstack, the total of number of under construction residential units registered under MahaRERA are estimated at 670,339 across 5,620 projects. Of the total units registered, as many as 350,000 units remain unsold leading to an inventory overhang of 52 per cent as of August 31, 2017.
With the implementation of RERA, the residential real estate industry is witnessing significant changes on the ground. The Act strictly prohibits builders from advertising their under-construction projects while allowing the freedom to attract buyers for projects that have occupation certificates (OC ready). With the new rules, buyers are naturally showing increasing interest in such properties, which are essentially ready to move in.
Hundreds of residential projects promised to be handed over to homebuyers this year have suddenly witnessed a leap in delivery timelines in the wake of the RERA Act, 2016 becoming a reality, as per an analysis by Knight Frank India.
The total carpet area of projects registered under MahaRERA as per recent data available was 84.62 million sq ft, of which the total sold area was 43.5 million sq ft - or 51 per cent. This is a very reassuring number, considering that the data encompasses a number of projects whose completion timelines extend to four to five years from now.
RERA has undoubtedly made India’s real estate market advance towards enhanced transparency. After the act was declared, Maharashtra was the first off the block to adopt it by launching a full-fledged ‘MahaRERA’ portal.
The Confederation of Real Estate Developers' Associations of India (CREDAI) has requested Hardeep Singh Puri, Minister for Housing and Urban Affairs, to intervene in a bid to facilitate the successful implementation of the Real Estate Appellate Tribunal under Section 43 of the Real Estate Regulatory Authority (RERA) Act in the country.