THOUGHT PAD
THE REAL ESTATE REGULATORY ACT (RERA) HAS BECOME A REALITY
funds raised for one project to another, leaving them unable
to complete construction and resulting in inordinate delays in
construction. The Act seeks to stop this practice and impose
penalties in case of a breach.
This Act will help distinguish good real estate players that
conduct business by the book from those who have not.
It will make buyers more confident and will perk up market
sentiments. Effective regulatory mechanism will lead to orderly
growth of the sector and give a strong impetus to the Government’s vision of ‘Housing for All’.
With increased disclosures, high transparency level, the
companies having better disclosure norms will definitely attract
more buyers. With the advent of RERA, the developers having
good financial capabilities, good delivery track record and greater level of transparency, will gain brand premium vis-à-vis those
who do not have these positive attributes.
THE SETTING UP OF
RERA WILL USHER
IN MUCH NEEDED
TRANSPARENCY
The setting up of RERA will usher in much needed transparency and pave the way for implementation of standard practices
The Real Estate Regulatory Act (RERA) has become a reality
across the sector that is as important as agriculture from the
point of view of economic growth.
At last the wait is over – the Real Estate Regulatory Act (RERA) has
become a reality. This is an extremely important and a landmark
It is a well-known fact that the construction industry impacts a
move by the government that could prove to be a game changer
number of auxiliary manufacturing industries such as cement
for the real estate sector.
and steel and the government’s decision will have repercussions on all of them.
The idea behind it is to regulate the real estate sector, protect home
buyer’s interests and ensure the timely execution of projects with
The current Indian real estate market, which is fragmented and
an aim to boost buyer’s confidence and eradicate illegal practices.
unorganised will be placed at par with that of other developed
If implemented in right spirit, it could also facilitate greater volumes
countries with clear accountability of developers. It will help
of domestic and foreign investment flows into the sector through
the industry to grow in an organized manner, check entry for
FDI, REITs and other innovative financing options. Several projects
the unorganised players and endorse our demand of giving
in India have been delayed in recent years after developers diverted
industry status to real estate sector.
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/ INNERVE / OCTOBER 2016