How Real Estate Act will work on Property Investment?

The Real Estate Regulatory Act (RERA) has been claimed to be customer-friendly as it promises to build accountability and transparency in the real estate sector and it has some strict policies and provisions, such as heavy penalty and 3 years of imprisonment for developers who don’t comply with its rules. RERA also requires buyers to make payments on time, along with their share of municipal taxes, registration charges, maintenance etc. and even interest. Every allottee will need to take part in the formation of association and take possession of units within 2 months of getting occupancy certificate by the builder.

What to Expect for Homebuyers?
Will the change be gradual or home buying experience change completely? Whether new or existing, a home buyer may not find any major change on first day of transaction. But all buyers, including those buying registered project or ongoing project, can get better protection under RERA. Manoj Gaur, CREDAI – National & MD, vice president, Gaursons Group, said, “Another
three months will be required for basic needs like a regulator, a state regulatory website etc. to be fulfilled. Under the Act, a transit period has been laid down which is also 3 months. It is safe to invest either in current project or project which is yet to be registered as delivery will be according to the RERA Act.”Getamber Anand, promoter of ATS Infrastructure Limited, and chairman, CREDAI, said, “A lot of developers have started making builder-buyer contracts according to RERA norms. There is no registration software in most states. RERA is a new beginning which comes with a commitment for better future for real estate industry.” Will Prices Come Down?

Developers are going to review their processes according to the new RERA Act. So, we may expect prices to come under pressure. Padding of risk associated with project which was not fixed before RERA regime may have bearing on the cost of project. On real estate prices, the impact might pan out over the next 12 months due to RERA, GST and the unsold inventory. It will define whether adjustment is required in pricing as per the supply and demand.