Will RERA improve transparency in realty?
With the Telangana government gearing up to implement the muchawaited Real Estate Development Regulation Act, 2016 from August, the one question that is top on the mind of everyone connected with the real estate in one way or the other is whether the new regulation will bring muchneeded transparency and accountability in a sector thats largely unorganised till now
Hyderabad: With the Telangana government gearing up to implement the much-awaited Real Estate (Development & Regulation) Act, 2016 from August, the one question that is top on the mind of everyone connected with the real estate in one way or the other is whether the new regulation will bring much-needed transparency and accountability in a sector that’s largely unorganised till now.
Though many prospective home buyers are still sceptical about the efficacy of the new legislation given the prevalence of corruption in the system, developers, real estate companies and consultants are optimistic that the new legislation will herald a new era for real estate sector which is a key driver of the country’s economic growth.
“Though it will pose some challenges to entry-level developers, RERA will benefit the real estate sector. Home buyers can approach RERA if there is any delay in projects. They can get remedy faster than earlier,” C Shekar Reddy, former national president of Credai, told The Hans India.
He further said that prices would not immediately go up after the RERA implementation as the sector was doing well in the State. “Sales are better now when compared to last year. All the companies are doing well. I don’t think there will be any immediate rise in prices,” he explained.
He however feels that there will be minor problems in the implementation process in first six months. “Hopefully, authorities will take care of them and make necessary amendments from time to time,” he said.
Rakesh Reddy, Director, Aparna Constructions, feels that RERA will not only help the revival of the key sector, but will also encourage more investment, thereby fuelling growth. “The Real Estate sector in the country has gone through a number of policy-level interventions in past one year of which RERA has been the most significant and impactful. Policies like RERA intend to protect the interests of home buyers and enhance transparency in the real estate sector,” Reddy said.
According to him, implementation of RERA in Telangana has been long due and this move will help the sector reach new heights. The State has been one of the strongest real estate markets in India and with RERA it will further boost the confidence of buyers and motivate them to invest in property and land purchases.
“The act is definitely going to channelize the future growth of the industry and will make the state especially Hyderabad the most sought-after real estate markets in the southern region,” he maintained.
Rajeshwar Tiwari, Chairperson, Telangana State Real Estate Regulatory Authority (TSRERA), made it clear that with the implementation of the new law, real estate sector would be regulated, and the consumer interests would be protected.
“All the projects coming up in area more than 500 square meters and having more than eight flats have to be registered with RERA,” he said at a recent awareness programme organised for real estate companies on RERA Act and Telangana State Real Estate (Regulatory Development) Rules – 2017.
The status of the projects registered can be viewed by both the project promoters and consumers. There will be transparency in the transactions. Plans / documents uploaded by the promoters can be viewed by the consumers, he explained.