Rera: Real Estate Regulatory Authority
A revolutionary decision of implementing RERA (Real Estate Regulatory Act) was taken by the Central Government in 2016. It was implemented after hearing a lot of woes from home buyers and investors, who invested in properties and residential complexes. But the reason behind the anxiety of these buyers was of project delays. Even after paying almost 90-95 percent of the payment for their properties and residential houses, they had to wait for many years to get into their abode due to these delays in project completion. So, the government paid heed to the problems and outcry of investors and buyers and hence, RERA (Real Estate Regulatory Act) came into being. With the strict norms set by the Central Government, now builders and developers have to get their projects registered under RERA. This was done in order to increase transparency in the Real Estate Market. It will also lead to the increased trust and confidence among buyers and developers.
Rajasthan was the first state to implement RERA (Real Estate Regulatory Act) in June and increased growth in towns like Neemrana and Bhiwadi is reported since then. Ankur Dhawan, who is the Chief Investment Officer at a real estate consultancy was quoted as saying, “A cargo airport has been approved in Bhiwadi, a new highway is being constructed to connect Jaipur with Delhi. So, there were some brownie points there already.” This is indeed a very positive development in such a short time span. The connection of Jaipur with the capital, Delhi would not only lead to great growth in real estate market but also affect the Indian economy as a whole. Also, now there is no place for doubt and suspicion as all the projects are being registered under RERA (Real Estate Regulatory Act). In fact, developers and builders have to take approvals in order to undertake a particular project. So, there is no risk of the project turning out to be fraudulent. With the amount and quality of information being available to the buyers, an increased level of willingness is witnessed even in lesser known locations post implementation of RERA (Real Estate Regulatory Act). So, with RERA, the areas where home buyers and investors did not invest in properties and residential complexes earlier are showing signs of development in these areas too. It will lead to the overall development of the country. It was not just in the case of Rajasthan, in fact, increased growth was witnessed in the parts of Uttar Pradesh, Tamil Nadu, Haryana and the outskirts of the Delhi NCR (National Capital Region).
Although it is expected that areas such as Meerut, Mathura, and Vrindavan in Uttar Pradesh would also should positive development in view of the real estate sector. In order to make magnificent development in Uttar Pradesh, many initiatives like ‘Make in UP’ are being promoted by the state government. It would also attract investors and promote investment, which will eventually lead to the high level of growth in the real estate sector in Uttar Pradesh. Even, many industrial and infrastructural developments are also taking place along the Yamuna Expressway. It would work in favor of UP as an increased investment with an upward surge in demand for residential development would be witnessed in the surrounding areas. It would also turn out to a benediction for youngsters who are eagerly waiting and burning the midnight oil in order to get good jobs in order to have brighter future prospects as a lot of employment opportunities would be created due to these industrial hubs near Yamuna Expressway. Many other positive developments are foreseen as there are plans under discussion in order to boost development and increase opportunity for the common man. The most significant plan which is currently in news is that a link would be established in order to connect Varanasi to Gorakhpur. If this is finalized, it would turn out to be a boon for developers and builders as it would lead to an upward surge in real estate prices in Varanasi. But on the buyers and investors front, it would be the best time to invest as currently, prices are low in these areas, but after the aforesaid development, the would witness an upward trend. Hence, it would be better if buyers and investors invest in these places now.
Many developments filled with a sense of optimism was witnessed in the southern part of the country. Areas such as Tamil Nadu and Coimbatore have also shown a positive trend. Many IT parks and industrial hubs are showing development in these areas. Coimbatore has come a long way. It is consistently showing positive growth and sparkling among other major cities nowadays. A wave of change is also being felt in Tamil Nadu. With increasing importance of the most significant sector of the country economic system. Many state governments are giving special attention to this dynamic sector.
It would not be new if it said that growth in areas such as Gurgaon would be seen. As Gurgaon is the major hub for leading developers and builders in view of real estate. It has always been the first choice of leaders of the real estate market. Even, Anshul Jain, who is the managing director for India at Cushman and Wakefield admitted that buyers and investors are expecting long-term investment options in New Gurgaon and Rewari in Haryana as eyes of many builders are focused on these two areas. Other areas of positive growth would be Nagpur and Nasik. Many positive future prospects are foreseen in these key areas as industrial and commercial development is picking up pace steadily whereas earlier demand for real estate in these areas was not up to the mark. Profitable deals with good returns are predicted from areas like Hisar (Haryana), Mysore and even Bijapur in Karnataka.
All the above-mentioned changes connote to the fact that with the implementation of RERA, the real estate market is finally ready to show positive growth with increased transparency and emerge as the most profitable sector of India’s economic system.