A lot is being discussed on the latest development in the Real Estate Industry – the implementation of RERA. RERA has set out new guidelines for regulation and promotion of the real estate sector and to ensure that the buying and selling of properties is carried out in an efficient and transparent manner.
The Chairman and Managing Director of Prestige Group, Mr. Irfan Razack, shares his thoughts on the implementation of RERA and its impact on the real estate Industry:
“The Real Estate Regulatory Bill, passed by Parliament in 2016, will be the transformational legislation on how real estate business is done. It advocates a completely different method of conducting business, starting from registration of a project after approvals before the launch, to keeping 70% of the collections in a designated account meant solely for that particular project, timely completion and delivery, commitment to specifications, total transparency in terms of availability, as well as a five-year warranty post completion. All this and more will make the Real Estate Developer that much more accountable and responsible to the home buyers, will eliminate the weak, the freelance and the fly by night operators, and will bring in overall professionalism and accountability. It will also bring in a lot of consumer activism. These steps though, while protecting the customer, will have an impact on the supply and increase the cost of the product. This in turn will increase the price, which the customer will have to bear. While there is a lot of expectation overall, the expectation that the price of property will correct itself downwards is baseless.”
He further adds, “While the Regulatory Bill was implemented on 01 May 2017, sadly the Government machinery, both official and political, has not been made accountable as a part of this legislation. Hence, getting approvals for building developments quickly and in time, including services and occupation certificates, still remains a challenge. The sooner the Government realizes this and implements measures to set right this deficiency as a part of their endeavour for ‘Ease of doing business’, the faster the economy can grow. This will also help the business of real estate and property development to be conducted in a seamless and transparent manner.”