Real Estate Regulatory Act is in favor of realty sector, says Modi Builders
Modi Builders Hyderabad reviews a survey report by FICCI and Grand Thornton, according to which inception of Real Estate Regulatory Act(RERA) is expected to reduce the number of litigations in the sector. It is also estimated that RERA shall strengthen the grip of governance onto the industry that may lead to increased foreign direct investments in the short term.
According to survey reports, almost 40% of the respondents think the implementation of RERA will massively impact project planning and construction. Further, timely delivery of projects would also eliminate non-serious players from the industry. Around 50% of the respondents are hopeful for the improvement of lending options as availing finance will not exhibit any hassles. Close to 60% respondents believe that investments will increase with strong governance and more than 65% believe transparency will hit the real estate dealings upwards.
An official spokesperson from Modi Builders mentioned that revival of the real estate industry will be increased effectively with the implementation of RERA. However, developers may not get in alignment rapidly, and require more time to comply with the provisions and complexities of RERA.
Accordingly, prices would either comprehend stabilization or may surge upwards in the near future, resulting in the betterment of the whole sector. The Act will expedite the completion of construction projects with reduced formalities. At the same time, prevalent fraudulent practices against the buyers would get eliminated in no time.
The report said: “This will also improve the ease of availability of financing options in the market. A major outcome of the survey is that industry feels that the rule of depositing 70% of sales proceeds in a separate account will help in getting timely delivery of the project and eliminate fly-by-night operators in the real estate.” The report recommended that the entire process for builders shall be eased up with RERA instead of ending up as another layer of approval.