Until now, and sadly so, there have been cases witnessed of many home buyers across India who have faced tremendous problems in getting possession of their newly purchased homes. Cases such as homeowners waiting for the developer to hand over the maintenance of the buildings, developers halting the redevelopment work midway, and developers not being able to stick to their delivery dates, are not some isolated cases. As a matter of fact, such stories are widely heard of in the Indian real estate sector.
It took almost eight years for the Real Estate Bill to pass in the Indian parliament. The reformed bill was proposed in January 2009, which came into effect on May 1, 2016. This particular Act is expected to bring a revolution in the real estate sector of India. With the implementation of this act, the much needed transparency and accountability will be brought into the sector. The Act is likely to cover a vast range of areas, including the launch of projects and post-sales matters. Clearly, this Act is comprehensive, leaving a little gap for uncertainty and complications.
Not many of us know but the Real Estate Development in India is currently going through a paradigm shift. Not long ago, the real estate sector in India was, literally and figuratively, in an orphaned state with nobody to take care. For the longest time, the buyers were always given a back seat while the focus was always on the developers.
But, thanks to the present ruling government, the much needed and highly anticipated Real Estate Regulatory Bill is now seeing the light of the day. Of course, the bill still requires its finishing touches; however, it’s ready and good enough to instill a bit of fear in the minds of cunning and greedy developers. From now onwards, developers will realize the profound significance of sticking to promises that they make, in addition to changing their focus on required approvals as an elementary step and not making sales like how it is today.
The country and its people have realized that the real estate sector does indeed have a significant role to play in augmenting the national economy. Considering the ever growing figures of homeless people living on the streets, the nation has woken up to its dire state, and finally the Real Estate Regulatory Act (RERA) is born.
In addition to this act, plenty of other government initiatives for accommodation have been launched. Housing For All, for instance, is one of the most ambitious projects, which is expected to produce over 20 million housing units by 2022. Besides, the proposed development of 100 Smart Cities in the country is expected to be a boon for real estate developers. In order to participate in developing these smart cities, developers across India will have to provide technology-driven, and most importantly, affordable homes.
The Future Outlook
Unsurprisingly, the real estate market of India is expected to witness a massive surge in the coming years; growing GDP coupled with controlled inflation, low fiscal deficit and improving liquidity are going to work in the favour of the real estate industry in India. However, a different school of thought suggests that it’s a long way ahead for the real estate industry to actually start having an effect and that it’s too early to predict anything.
All in all, the real estate industry in India has already taken the plunge in the right direction. Yet, the result are to be seen!