The Real Estate (Regulation and Development) Act, 2016, (RERA), much-awaited real estate reform came into effect in May 1, 2017. After 4 months of its execution, till date it loses out to track buyers’ sentiment. Industry experts pointed out the variable execution of the law by the states as one of the major reasons of slow progress of market recovery.
By far, 23 states and UTs (excluding J & K), have already notified the rules; of them 13 states and 6 UTs have notified rules in the presence of interim regulators. Only four states- Punjab, Maharashtra, Gujarat and Madhya Pradesh have formed permanent RAs. States like- Goa, Himachal Pradesh, Kerala, Telangana, Tripura and West Bengal have confirmed the draft rules, but yet to notify them. Whereas, following the central directions, UP is about to re-notify state RERA norms. North eastern states such as- Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Sikkim are having some constitutional issues over land ownership, which are needed to be scrutinized further.
Seven states have started procession online registration process of real estate projects and agents. The Act says, states can set up respective websites within one year from the framing of state RERA RAs. By then they are allowed to register projects offline.
Mostly states have mended the central Act likewise their own basics. Accordingly, real estate builders, projects and agents are pulling a tail on. Residential realty market in the National Capital Region (NCR) is such an evident example of this display. The reason behind UP and Haryana kept out most of the on-going projects from RERA purview is strong political connects of the builder lobby. Projects that have done with the construction part and have applied for the completion certificate are excused from RERA coverage. This has ended to confusion between the existing buyers and the prospective ones.
To avoid being legal bound most of the developers in Haryana and Gurgaon applied for completion certificates during last year Oct-Nov and got OC within subsequent months. More or less 21000 of such projects were completed in Noida and Gaziabad location during last 6 months and got handed over, whereas common facilities are yet to be developed.
With the introduction of RERA, new project launches have significantly dimmed in the major cities. Sources revealed that new residential launch has dropped by 41% in major cities such as- Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune. Purchase decision gets postponed all over country for delay in RERA execution by the states in true law and spirit. Market expects realty sector to be stabilized within next FY as the central Act is yet to be implemented completely. Execution of RERA will definitely enhance the sale in the coming days and will recover the market from corruption.
The confusion in the market is likely to persist unless all the states are notifying their rules. Again curbing the central Act is not the way to be present in the list. Dilution of RERA will rather fuel the level of turbulence,’’-said, Mr. Mahesh Somani, The Chairman - National RERA Committee, National Association of Realtors India (West Bengal).
Ongoing discount offers on flats in Rajarhat location. Buy luxury flats at best affordable price. Ready for occupation luxury properties. Browse www.liyans.com for more property info.
By far, 23 states and UTs (excluding J & K), have already notified the rules; of them 13 states and 6 UTs have notified rules in the presence of interim regulators. Only four states- Punjab, Maharashtra, Gujarat and Madhya Pradesh have formed permanent RAs. States like- Goa, Himachal Pradesh, Kerala, Telangana, Tripura and West Bengal have confirmed the draft rules, but yet to notify them. Whereas, following the central directions, UP is about to re-notify state RERA norms. North eastern states such as- Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Sikkim are having some constitutional issues over land ownership, which are needed to be scrutinized further.
Seven states have started procession online registration process of real estate projects and agents. The Act says, states can set up respective websites within one year from the framing of state RERA RAs. By then they are allowed to register projects offline.
Mostly states have mended the central Act likewise their own basics. Accordingly, real estate builders, projects and agents are pulling a tail on. Residential realty market in the National Capital Region (NCR) is such an evident example of this display. The reason behind UP and Haryana kept out most of the on-going projects from RERA purview is strong political connects of the builder lobby. Projects that have done with the construction part and have applied for the completion certificate are excused from RERA coverage. This has ended to confusion between the existing buyers and the prospective ones.
To avoid being legal bound most of the developers in Haryana and Gurgaon applied for completion certificates during last year Oct-Nov and got OC within subsequent months. More or less 21000 of such projects were completed in Noida and Gaziabad location during last 6 months and got handed over, whereas common facilities are yet to be developed.
With the introduction of RERA, new project launches have significantly dimmed in the major cities. Sources revealed that new residential launch has dropped by 41% in major cities such as- Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune. Purchase decision gets postponed all over country for delay in RERA execution by the states in true law and spirit. Market expects realty sector to be stabilized within next FY as the central Act is yet to be implemented completely. Execution of RERA will definitely enhance the sale in the coming days and will recover the market from corruption.
The confusion in the market is likely to persist unless all the states are notifying their rules. Again curbing the central Act is not the way to be present in the list. Dilution of RERA will rather fuel the level of turbulence,’’-said, Mr. Mahesh Somani, The Chairman - National RERA Committee, National Association of Realtors India (West Bengal).
Ongoing discount offers on flats in Rajarhat location. Buy luxury flats at best affordable price. Ready for occupation luxury properties. Browse www.liyans.com for more property info.
No comments:
Post a Comment