One of the most significant regulations is that the Real Estate Regulatory Act (RERA) has been preparing for some serious changes in this sector. RERA aims to bring in a regulated system for sector’s growth, be it for the developers or for consumers.
The only thing that is static is the change, this remains a very famous saying and currently, every stakeholder in the real estate sector agrees with it. This sector witnessed significant regulatory changes in the recent past that are poised to define the future of the sector.
According to study, it is evident that the sector will be heading towards forming a more transparent, competitive, value offering, hassle-free and definitely consumer-focused environment. Though these appear very promising in the whole, but the execution is what will define the actual course of these changes.
RERA, undoubtedly, has been the biggest reform till date, which has come in real estate sector recently. The announcement of this law has received mixed reviews both from developers as well as home-buyers. This act has precisely encapsulated the features to safeguard the interests of homebuyers completely but in doing so it has also proposed certain changes that may likely impose to financial challenges on the developers’ side. Jain Heights believes in promoting transparent transactions and documentation among its customers to have a very loyal database in future days. Having done many successful projects in the modern times, we are always looking forward to building a better tomorrow in terms of service and quality of our offerings with respect to the current scenario.
For example, RERA prescribes that every project needs to be registered with the Authority disclosing all relevant information and documentations pertaining to the property, like the details of promoters, sanction plans, the number of units with carpet area, etc. This is ensured and followed as developers by us to practice safe and legal business and we thereby do not commit beyond their reach and are accountable to what we have committed during the actual sale proposals. This is done in order to safeguard the capital of the consumer and ensure that the project does not get delayed. Commitment on Carpet Area states that a homebuyer has to pay only for the actual useable area and not as per super-built up area is what is currently being followed. Moreover, this will clear the intentions with respect to what a homebuyer is paying for and make their transactions transparent.
One thing that is clear from the government with the introduction of the act is to make sure that the projects are delivered on promised time. This incident has however missed addressing one major hurdle in the path that accounts for the delay in sanctions and plan approvals. It is to be noted that all delays are not from developer’s end. The sanctioning and approving team play a major role and thus need to be brought under its ambit if government genuinely chose to achieve its goals. The bottom line here is that the state government has the opportunity to amend the act, if they look at developers in the same priority as customers do, this will eventually lead to the successful execution of projects.
This overall scenario is looking good for the medium in the long run for businesses and consumers. But on the short run, this would mean a lot of transitional difficulties for businesses. It would literally spell doom for a lot of developers and the market would witness lot more consolidation.
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