RERA (Regulation and Development) Act changed the way real estate works completely. Implemented almost 2 years ago, RERA Act has brought with it immense change and much needed regulations for when it comes to investing and buying property. As history is witness to it, RERA is possibly the biggest and the most required Act when it comes to Real Estate Industry in India. It is indeed a big challenge to bring reform and regulation to the multifold real estate industry in India. RERA Act has now completed two years and let us take a look at how far we have come in these two years and how RERA Act influences the Real Estate Industry:
The Shaping of Real Estate in India
In 2016, RERA Act was implemented first at the center and then subsequently to all the states. It was indeed recognised that in order to establish regulations around real estate, it is a must to implement close monitoring of processes and practices, without which, it is almost impossible for organised funding to take place, amongst various other things. As much as RERA Act is a work in progress, various states have taken the lead and implemented it. Maharashtra and Madhya Pradesh have taken the lead while states like Bengal and Haryana are catching up.
RERA Act – The Achievement
MahaRERA, which is considered by most as the most advanced state in implementing RERA, came up with a number that at the end of 2018, 5000 complaints were received and nearly 3100 orders were passed. At the end of 2017, 79% rulings were in the favour of the buyers. This is a transformation in itself as it raises awareness regarding the law on all sides. These numbers give us a small but definitely very striking glimpse into how RERA Act offers buyer-protection and with the kind of speed that one can expect to achieve this protection. As we take this state as a sample, once RERA Act is practiced by various states and strictly enforced, the real estate industry in India will change completely and will change for the better.
Power to the Buyer
With the implementation of RERA Act, initially, the market suffered a crash. The reason for this is simple – now, every step of the process of buying was monitored. The requirement from the state for transparency was high and strict, because of which, various projects suffered. Gradually, with client and customer funds, the market has become stable once again and is moving upwards.
Tracing various changes that the Real Estate Industry has seen after the implementation of RERA Act, one can argue that even though it is a work in progress, RERA Act is what was required to shape up the way in which funds are used and given, investments and constructions done and dusted. Moreover, we must all be prepared for the in-depth expansion and development of RERA Act even more as it settles in place and gets implemented properly.