by Mr. Anuj Puri, Chairman,
JLL India
Policies To Enhance Transparency...
Notoriously non-transparent, the Indian real estate sector
certainly needed a fresh infusion of
progressive reforms to boost confidence amongst home buyers as
well as investors. To this end, major reforms were initiated around mid-2013 in the form of Real
Estate Regulatory (RER) Bill and the Land Acquisition, Resettlement & Rehabilitation (LARR)
Bill.
 |
| Anuj Puri |
Schemes such as pre- launch (selling apartments without
obtaining all necessary approvals) and 80 : 20 (20 % booking advance and remaining 80 % after possession) were targeted to ensure
adherence to market best practices.
However, typical to the housing sector, no reform is without its
unique drawbacks, flaws or limitations
- and these were no different. Both the bills (RER & LARR)
had clauses or bye-laws that threatened to
further escalate prices in a market craving for absorption
numbers. While the regulatory bill raised
developers’ funding concerns by proposing to ban the practice of
pre-launches, the land acquisition
bill rendered the process of acquiring land costlier and more
time-consuming.
No comments:
Post a Comment