By Accommodation Times Bureau
The approval of Real Estate Regulation and Development Act (RERA), by the Modi Government, although, conducted us in a new era of transparency in real estate sector. But as previously expected, the number of launches dropped lower in Q1 2017 by 24%.
Showing the number of launches 4,900 as compared to 6,500 units in Q1 2016. Experts are considering this drop as temporary, saying that developers might be getting adjusted to the new RERA rules, imposed by the government. The new rules, have actually brought developers, promoters and real estate agents to an unfamiliar atmosphere, where they are taking efforts to get adjusted with the new directives.
The Maharashtra government is one of the trailblazer to apprise the rules related to RERA. Although the government is still reconciling several details in the new rules, but an online mechanism is already in place for registration of real estate projects and real estate agents.
The rules have specified that all the new under construction projects must get registered with the authority by July 31, 2017. After that date, developers without registration won’t be allowed to advertise or sell projects in the market anymore. The developers and agents have warmed up for the registration process, subsequent to such requirement,.
“With the RERA becoming a reality now, it is important for developers to prepare for the changes promptly. The change in the real estate cycle may act as an entry barrier for small players and speculators. We believe improved project planning will help developers avoid delays and manage project funds efficiently. It would be prudent to hire planning professionals to take all steps to ensure timely project completion. Making such preparations early should give developers an edge over rivals and boost buyer’s trust,” said Surabhi Arora, Senior Associate Director, Research, Colliers International India.