The Real Estate (Regulation and Development) Act or RERA came into force on Monday buoying home buyers while builders are busy upgrading businesses for the new regime of stricter regulatory supervision across the country, but several states have missed their October deadline and are yet to notify final local RERA rules. States such as Assam, Tripura, Karnataka, Tamil Nadu, Punjab, Himachal Pradesh, Mizoram, Jharkhand, Telangana, West Bengal and Chhattisgarh are yet to formalise RERA rules despite being ready with draft rules.
(Source: ET Realty, 1 May 2017)
Colliers Valuation & Advisory Services View
It is a positive move towards giving structure to one of the biggest revenue contributor and employment generating sector. This will not only provide clarity on the roles and responsibility of various stakeholders, but also give a level playing field to differentiate between performers and non-performers. This act will be beneficial to both developers and buyers.
Colliers Research View
In our opinion, setting up the required “RERA infrastructure” such as the authority and the Appellate Tribunal as well as an online platform is likely to take at least 3 to 6 months. During this transition time, both real estate developers and agents are likely to face challenges in the short term as they need to comply with the new set of regulations. We believe improved project planning will help developers avoid delays and manage project funds efficiently. It would be prudent to hire planning professionals to take all steps to ensure timely project completion. Making such preparations early should give developers an edge over rivals and boost buyers’ trust.