The Real Estate (Regulation and Development) Act is finally being implemented. What are your views regarding the same
By Naveen Mypala, Director, Aliens Group
[ source : 99acres ]
The year 2017 is on a good path for homebuyers and after the implementation of the RERA Act, there will be more transparency in the realty market. The RERA Act will push developers to sign agreement with buyers and can claim other initiatives which are RERA compliant. RERA will also protect the interest of homebuyers and ensure timely delivery of projects
How developer-friendly is RERA? Do you think it has turned out to be a win-win bill for both buyers and developers
RERA is more lopsided towards homebuyers as compared to the developers. Under the Act, developers are now first trying to complete their existing projects rather than focusing on new launches. Moreover, developers will now have to work on proper deadlines and other initiatives, which is a positive start as it will strengthen the bridge of trust between developers and buyers.
Will realty demand revive post RERA implementation?
Considering the present scenario, the upcoming few months are likely be a gestation period in the real estate market and the second half of 2017 will see the positive results triggered by the implementation of RERA. The transparency induced by the Act will help buyers to choose the best suitable home which will drive sales.
Were there any new launches you were holding back in anticipation of RERA? Do you plan to go ahead with the launches immediately post the implementation?
No. We are currently focusing on completing the ongoing project, for which we have already taken a funding worth Rs 200 crore and have signed a contract with our vendor for Rs 580 crore.
Is RERA going to impact property rates in your city/cities?
Hyderabad has recently seen some shift in pricing so it will have a minimum impact on the prices. However, the compliance will be the key to this sector where timely delivery will become the USP and developers may use it to take a leverage for playing around with prices.
What is the road ahead? What is it that still needs to be done in order to hit the target that RERA was conceptualized for?
The road ahead will be difficult for the initial few months, however, the whole atmosphere will settle down. The impact may be seen for a few years but road is much brighter post 2020, which may see lesser complaints and troubles for buyers.
The fluctuation in prices for the raw materials need to be stabilised as they pose as a roadblock in procuring materials. Raw material vendors, too, should brought under some compliance. A sudden hike, midway of a project, is the biggest deterrent for timely delivery as negotiations or change in vendor for large scale projects consume critical amount of time