RERA is short for Regulation and Development Act. In the real estate sector, the introduction of RERA almost two years back has changed everything. The way in which investment and real estate worked in India have completely changed, all thanks to the Regulation and Development Act (RERA). The primary reason for the introduction of such an act was to make sure that there are some laws and some ground rules that regulate the way in which India invested in property. Some people even go to the length of saying that RERA is the biggest and the most required act when it comes to Real Estate Sector of India. Here are some effects that Regulation and Development Act have had on Indian Real Estate:
A New Concrete India
Implemented in the year 2016, RERA is one act that is here to stay and make history. For the longest time, people of India have been investing in real estate. We live in a country where investing in a house is also buying a home, which means that it is as much as a financial decision as it is an emotional one. This is why, in order to develop transparency and credibility, it was important to regularise the way in which our country invested in property, be it homes, weekend homes, commercial spaces or any other kind of property. The vision was to bring in reforms that are tilted in favour of the buyer and put an end to various malpractices that were being carried around in the real estate sector.
RERA – The Impact
When it was introduced, RERA Act was first implemented in the center and gradually, in all the states. With RERA Act came a discipline in real estate, in the way that funds were accepted and demanded, and there was a visible organisation seen in the real estate sector, unlike ever before. The impact was so huge that Maharastra, a state that is considered to be the biggest implementer of the RERA Act, came up with the statistic that once the RERA Act was implemented, almost 5000 complaints were received by the end of 2018 and 3100 orders were passed. One can only look at the numbers and imagine the kind of requirement there was of reform in the real estate sector.
The Buyer Power
As can be seen with most big shifts, the first few months after the implementation of RERA Act saw a market slow down. This happened because the way in which business was done till this point had now completely changed. Now, there were layered processes that both parties had to go through before any kind of investment or purchase were made. Every step of the process of buying was monitored. A state of high transparency was required and this was in the benefit of the buyer as they were now protected from frauds or being taken advantage of. This is exactly what RERA planned on achieving, amongst many other things.
After almost 2 years of RERA Act being in place, the market has picked itself up again and one can see the stability once again. All in all, this shift in the real estate sector was a long due one and the RERA Act is here to stay.
