Narasimha Swamy N, Head of Sales, Marketing & Customer service, VBHC
This is a welcome move by all where the state will establish a Real Estate Regulator Authority on May 1st.This regulator will govern all real estate transactions, thus improving the governance on the real estate sector by reducing disputes and making the system more transparent and robust. Another rule that homebuyers cheer is the escrow account provision. RERA’s rule of depositing around seventy percent of funds in a dedicated account will ensure sufficient funds for the projects to speed up, get completed and timely delivery to buyers bringing in more transparency.
RERA as a policy measure has the potential to revive the sector. With RERA, there would be mandatory disclosure of project details, including those of the promoter, project, land status and clearances. This would increase the credibility of developers and would protect consumer rights as well. Home buyers confidence is now set to increase on the back of these sentiment-building measures of the government which will increase the positivity of market sentiments and creates an equal opportunity to all developers.
I believe this bill is going to change the whole dynamics of real estate in coming future. It will give competitive advantage to builders who are efficient in planning and execution; their development cost won’t increase much and they can continue to sell at same price by taking a negligible hit on margin.
“The only thing that is constant is the Change” is a very famous and well-known saying and currently every stakeholder of the real estate sector will agree with it in too. The sector witnessed significant regulatory changes in the recent past that are poised to define the future of the sector. Prima facie, it is evident that the sector will be heading towards a more transparent, competitive, value offering, hassle-free and definitely consumer-focused. All these present a very promising picture but execution is what will define the actual course of these changes.