RERA effect! Timely delivery, transparency in deals helped structured realty growth, say experts

RERA has forced real estate developers to bring transparency into the process while dealing with the homebuyers. They have to make reasonable promises and then have to ensure they fulfill them. In effect, provide possession of the flats in a timely manner. The overall impact on the sector has been positive - it helped the Indian real estate sector to register a structured growth over the last two years since the inception of the real estate regulatory regime. The industry insiders say RERA has ensured the safety of the homebuyers to a large extent as the major complaint among the home buyers in pre-RERA years was delays in delivery and not meeting promises, which a real estate developers were guilty of while selling flats.

Elaborating upon the home buyer's benefit that RERA brought in last two years post-inception, Parveen Jain, Vice Chairman NAREDCO said, "RERA is buyers’ friendly and the major problem of delay in projects has been looked into and taken care of, where otherwise earlier the buyers used to feel helpless. Due to the implementation of RERA, the Real estate sector is becoming more structured, streamlined, organized and moving forward on the positive right way."

Jain went on to add that due to the implementation of RERA, transparency has seeped in buying, selling of properties making the things more systematic. "Now the buyers cannot be taken for a ride where they feel helpless and nowhere to go on account of delay in projects or other factors. The interest, confidence and trust of the buyers have rekindled in the Real estate sector because of RERA," said Jain.

JC Sharma, Vice Chairman and Managing Director, Sobha Limited said, "With the regulatory mechanism in place, the consumers’ grievances can now be resolved faster. Additionally, it has enabled the developers to understand their responsibility and work within their competencies. As a result, they are increasingly becoming realistic in offering the right products at the right price point. This is facilitating speedy execution of projects and creating a win-win scenario for both developers and homebuyers. We believe that RERA will continue to drive the sector and Indian economy towards sustainable growth."

Farshid Cooper, Managing Director, Spenta Corporation said, "With the onset of RERA, the crucial objective has set in motion by ensuring operational rules and creation of institutional infrastructure. It has definitely promoted transparency, trust and growth in the real estate sector. In the last 2 years, RERA has helped in augmenting long term growth by attracting increased foreign and local investments. The RERA Act has definitely provided the platform for sustainable growth."