Real Estate Bill has been passed by Rajya Sabha (upper house) on March 10, now it will soon be tabled in Lok Sabha (lower house), where it will easily pass through.
Transparency and accountability: are the two most important things that are missing from real estate industry. Due to this, both consumers and investors are scaring away from new projects.
Not only this, global slowdown, discrepancies, disputes, project delays, frauds, and other vagaries are also dragging real estate down further. Almost all, real estate developers, builders, and brokers, would unequivocally agree that year 2015 was harrowingly slow.
Adding to these woes, real estate inventory is piling up threateningly. Delhi NCR region alone has around 2 lakhs unsold units. Moreover, Delhi NCR region has witnessed price corrections around 15 to 20 percent, almost cutting the profits of developers and builders.
At this point of low, Real Estate bill has entered as a savior for the industry. Especially for developers, builders and brokers, who are looking for revival and rebound in the market.
Real Estate bill will definitely boost investors and consumers’ confidence, and reintroduce transparency and accountability to the industry.
With strong punishment, registration for brokers, emphasis over timely delivery, fast dispute resolution, and accountability of developers, builders, and promoters, and many other factors makes this real estate bill robust.
Actually, it in the interest of the real estate industry, therefore there is undisputed support from both consumers and sellers. Nevertheless, new real estate bill can crop up new challenges.
Though, with the setup of RERA (real estate regulatory authority) under real estate bill, will ensure effective implementation. However, there is fear in market that RERA might increase red tape, delay projects, and further make it complex to get approvals, permits, licenses and others in time.
Government has signaled for single window clearance to come up in real estate soon, which industry believes should be introduced with real estate bill. In addition, there is Land Acquisition and Rehabilitation Bill pending in parliament, making rounds of standing committees, and disputed by opposition on many terms of the bill.
Both single window clearance, and Land Acquisition and Rehabilitation Bill are dear to the real estate industry in India. However, at this juncture, the major shift and uptick can be triggered by real estate bill itself as soon as it is implemented.
Today, Noruma (financial services firm) reported that the new real estate bill would also encourage foreign direct investment in real estate industry of India.