RERA stands for the Real Estate Regulation and Development Act. It was put into practice in May 2017. This act has had a deep impact on the real estate sector. You can notice the effect of RERA implementation in the National Capital Region, which includes Faridabad and Gurugram of Haryana and Noida and Ghaziabad of Uttar Pradesh.
RERA IMPLEMENTATION: Delhi/NCR
The Delhi Development Authority (DDA) along with the efforts from the government has implemented the Delhi RERA. There are some deviances in the Delhi RERA as compared to the Central RERA. As per Delhi RERA new development highlights can be added to the property after its registration. There is one more deviation and this is with regards to the affirmation of legitimate cases against the developers. Though there some deviations but, the Delhi RERA, is one which will have long term benefits for the builder and the buyer. However, the RERA rules for the NCR regions are not very clear which is a matter of concern. This will affect the rates of NCR properties.
RERA IMPLEMENTATION: Impact on Builders and Buyers
RERA brings about lots of hope. It comes with a promise for better transparency for the buyer. When a project is being registered with RERA a number of details have to be provided. As per RERA the builder will have to complete the project as per the schedule and he cannot use the funds of one project for another project. This increases the confidence of the buyer. It gives the buyer the assurance that he will not be taken for a ride. So obviously RERA will have a positive impact on the minds of the investor and buyers.
RERA IMPLEMENTATION: The Property Prices in Delhi NCR
In the first half of 2017 the property sale in the Delhi NCR region is down by almost 26%. There has been a price cut in the past few months. Even then it left an impact on the property sale adversely. It should be noted that this place has a large number of unsold housing units. These are in the range of lakhs of units. It is estimated that the developers will take more than 4 years to sell this unsold property. The number of new launches in the Delhi NCR region has also dipped.
The main reasons for this dip in new launches are that the builders are focusing on completing the existing projects due to RERA. Also there is not much demand for property in this area. On the whole one can say that currently the Delhi-NCR region’s real estate market is going through a dull phase. The impact of RERA in real estate sector will be huge.
To Sum up
RERA was introduced to bring in more transparency. This rule will surely have a long term effect. The introduction of GST will also bring down the construction prices. So one can hope that the market will revive and things will be better. The property prices in the Delhi NCR region have got affected due to the combined effect of RERA and large number of unsold properties in the Delhi NCR regions.
This blog intends to explain how the RERA implementation left an impact on property prices in Delhi/NCR.
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