It’s a four-letter word which has been regulated for real estate sector’s growth, and it’s called
RERA (Real Estate Regulatory Act).
What impact does it bring? Read on to find out.
For too long there have been demands for better transparency and accountability in the area of real estate transactions. Laws were too indefinite, recourse methodologies were obscure, home buyers were in a lurch and the legal process was burdened. To address these critical issues, RERA was passed by the cabinet in May 2016. However, real estate being a state subject, the implementation has to be done separately by each state and the state government also has the powers to make necessary modifications to the law if required.
‘Change is the only constant’ said an intelligent person and this adage holds true even today. Presently every stakeholder of the real estate sector will agree with it in Toto. So what holds in the future? Only time will tell, but what we can now foresee is this:
These reformations have painted a bright picture in front of the developer and the consumer. So, what exactly will be the Implications of the implementation of RERA on the real estate market?
Now that we are clear what the mandate will bring both to the developer and the buyer, the million dollar question remains is that ‘will it bring that big impact in the pricing?
The answer to this may not be as straight as an arrow. While the new rules call for a much stricter compliance and transparency, which may push the real estate prices up especially for the new launches, the large amount of inventory overhang in the system, will probably keep the price rise at bay till the supply gets over. Unlike in the past where builders had a field day with the projects, various RERA provisions would now ensure stricter control on management of funds and timely delivery of projects. When a RERA compliant project gets launched, the cost to a builder is expected to go up and therefore the prices will soar. With the implementation of RERA, the overall costs of development of real estate projects are expected to go up and the same is likely to result in an increase in the prices of the real estate projects.
At Avant Infra, we follow the mandate diligently as a developer/promoter and all our projects are RERA registered. We are the preeminent real estate developer in Mumbai believing in transparency, uncompromising dealings, and being completely customer-centric. We are known for forging and nurturing long-standing relationships built on trust, ethics and our expertise. Our new development, Avant Heritage in Jogeshwari is currently the talk of the town due to its colossal structure, prime location and it also falls under the ‘affordable luxury housing’ tag. Three majestic towers of 23 floors each having lavish 1, 2, 3, 4 bhk duplex penthouses with modern amenities such as grand designer double height entrance lobby, temperature controlled Jacuzzi & swimming pool, terrace garden and rainwater harvesting, make it a dream home of many.