Impact of Real Estate Regulatory Act (RERA)

1. Impact of Real Estate Regulatory Act (RERA) Indian Government proposed the clearance of Real Estate Regulatory Act (RERA), which came into effect on May 1, 2017. The sole objective of this reformatory Act is to safeguard the interests of the home buyers and ensure timely possession of the residential apartments. Let’s discuss the positive and negative implications of RERA on home buyers- In the first case, RERA regulates the developers to get approval from a designated Authority revealing all its sanctions by concerned bodies. With this, RERA constraints the developers from collecting funds for their projects during pre-launching campaigns, which subsequently increases the cost of residential project for prospective buyers as developers in such a case are forced to raise funds at sky-high rates. Despite this regulation of RERA, Vera Developers’ luxurious residential project in Zirakpur remains unaffected in terms of cost due to transparency in its entire procedure of possession and its effective mechanism for cost management, which is in sharp contrast with the ever-increasing price of apartments in zirakpur vip road. Secondly, as per the regulatory measures of RERA, home buyers are required to pay for the actual useable carpet area only instead of the super-built up area. This regulation indicates that cost of the development of the super-built up area will be borne by the developers, which in turn will be levied upon the customers (prospective buyers) as part of the carpet area cost. Gold Mark, North India’s first residential project using Mivan Construction Technology (European Construction Technology) is an immediate relief for the home buyers in pursuit of luxurious, comfortable and safe dwelling since it offers 3 BHK luxury apartments at prices much lower than that of 5 bhk flats in panchkula.

2. It is quite evident from the defined rules and regulations of RERA that the sole intention of the Government of India is to ensure completion of the residential projects during the pre-decided time frame and its timely possession granted to the home buyers but unfortunately, the Indian Government failed to accommodate the most significant factor responsible in the delay of project completion, which is, delay caused in getting approvals and sanctions from authorized bodies. However, in order to witness the effect of RERA on real estate sector in absolute sense, we will have to wait for its successful execution. Reference… https://goo.gl/6TfohD