Real Estate
Regulatory Agency - RERA Applies on Property under Construction
by Mr. Gulam Zia, Knight Frank India
Question:
How will RERA protect me
and help me make a wise property decision?
In case if you are
buying a ready property from a builder or an investor, RERA will hardly have an
impact on you deal.However, if you decide to buy an under construction
property, then RERA comes to you as a boon.
For a long time,
unsuspecting buyers going for an under construction apartment have been on the
receiving end of it with little or no respite in case it they got a raw deal.
Delays in possession,
misrepresentation of area measurement, quality falling short of the promised
product, financial mismanagement, etc., have been the most common grievances
that will be things of the past once RERA is fully operational.
Question:
Will RERA help bring
down property prices?
RERA does not propose
any market control measures. Real estate prices are fully governed by market
economics with practically no governmentregulatory control or interference.
RERA will require
developers to change their processes and systems and get complaint with the
RERA rules. Such compliance will be definitely an additional cost which every
developer would try to pass on to the buyer.
However, the real estate
market has been on a decline for last three consecutive years and seems like a
buyer's market almost all over the country.
In current times where
buyers aren't too keen to buy, passing any additional cost seems difficult.
However, since the risk of buying an under-construction property will be much
lower under RERA regime, a premium towards that is only justifiable.
Mr. Gulam Zia, Executive Director, Knight Frank India
Executive Director - Advisory, Retail & HospitalityT: +91 22 6745 0152M: +91 98208 52726
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