Real estate is one of the most crucial sectors of the Indian economy. The real estate industry has been struggling with various issues, such as lack of transparency, delayed possession of properties, and various fraudulent activities. To address these issues, the Indian Government introduced the Real Estate (Regulation and Development) Act, commonly known as RERA, in 2016. RERA has been a game-changer for the Indian real estate industry, as it has brought transparency and accountability to the operations of real estate developers.
Understanding RERA
RERA is a landmark legislation that aims to regulate the real estate sector in India. The act mandates that every real estate developer register their projects with the regulatory authority. This registration ensures that the developer complies with all the regulations and guidelines laid down by RERA. The act also requires developers to disclose all the project details, such as the timeline for completion, the property area, and the approvals’ status.
The impact of RERA on real estate developers
The introduction of RERA has changed the way real estate developers operate. The act has made developers more accountable and transparent in their dealings. Developers are now required to adhere to strict guidelines and timelines. They are required to complete the project within the stipulated time and cannot deviate from the original plan without prior approval from the regulatory authority.
The benefits of RERA for home buyers
RERA has been a boon for home buyers. The act has ensured that the interest of the home buyers is protected. Under RERA, developers must deposit 70% of the project cost in a separate bank account. This ensures that the money of home buyers is not diverted to other projects. The act also provides for a grievance redressal mechanism, which allows home buyers to file a complaint in case of any dispute with the developer.
The challenges faced by real estate developers
The implementation of RERA has not been without its challenges. Real estate developers have faced various issues, such as delays in obtaining approvals and the shortage of skilled labor. The act has also increased the compliance burden on developers, which has resulted in a rise in the cost of projects.
The future of real estate in India
RERA has brought about a significant change in the Indian real estate industry. The act has helped in building the trust of home buyers in real estate developers. It has also made the sector more transparent and accountable. The future of real estate in India looks promising, with the implementation of RERA and the government’s focus on affordable housing.
Conclusion
RERA has been a game-changer for the Indian real estate industry. The act has brought transparency and accountability to the operations of real estate developers. It has protected the interest of home buyers and ensured that their money is not diverted to other projects. The act has also increased the compliance burden on developers, which has resulted in a rise in the cost of projects. However, the future of real estate in India looks promising, with the implementation of RERA and the government’s focus on affordable housing.
Prestige Park Grove is an upcoming township launched by the Prestige Group.
