Several bottlenecks exist still.
Post implementation of Real Estate (Regulation and Development) Act, 2016 or RERA, consolidation in the real estate sector has primarily been witnessed in Mumbai and New Delhi and in the next 12-18 months around 90% of the developers will face a tough time in the realty market.
On Tuesday, “MahaRERA Day” was observed as it has been a year since it was rolled out in Maharashtra. In an event jointly organised by Maharashtra Real Estate Regulatory Authority, Credai Maharashtra, Credai-MCHI, Mumbai Grahak Panchayat and Naredco, discussions and deliberations were made by various stakeholders of housing industry.
During on of the panel discussions, Ramesh Nair – Chairman, JLL India shared that the consolidation of projects has primarily been witnessed only in the national and financial capitals of India.
Analysing RERA’s enforcement throughout the country, Pankaj Kapoor – Founder and Managing Director of Liases Foras said, “Around 70-75% of housing supply has got covered by RERA, while West Bengal and Kerala are yet to notify the Act.”
In fact, Maharashtra Real Estate Regulatory Authority has come up as the best in India, or else some other states only have tribunals or websites have ‘systems’ issue. On an average, daily, MahaRERA’s website get around 7,000 visitors, thereby showing popularity among home buyers. “This number will only increase further with more awareness,” said Aarti Harbhajanka, Director, KPMG India.
On the first anniversary of RERA, the implementation across states is nowhere close to its goal. As of April 2018, only 19 States and Union Territories have online portal in place and five States and Union Territories have a permanent real estate regulatory authority. So far 27,000 projects are registered under various state RERA, while 17,000 agents are registered under RERA.
According to Anuj Puri, Chairman of Anarock Property Consultant in the next 12-18 months nine out of 10 developers will not survive in the industry due to stringent rules put up by the regulation. Thus, going forward the corporate houses, who have funds and an expertise to handle sundry list of regulatory laws, will enter the industry.
On the subject of delay in project completion, partially putting the responsibility on government authorities and officials, Vijay Wadhwa, Chairman, Wadhwa Group opined that the RERA is regulating only realtors, but those offices and individuals on whom the realtors are dependent for clearances aren’t being regulated. Therefore, there should be a mechanism within RERA to get the officials too under the fold to maintain project timelines.
Overall, it is believed that RERA will come into force across India, possibly in next 12-18 months. “One of the aspects that the central government should to do to make RERA impactful is align the Insolvency and Bankruptcy Code to it, creating a proper option for exit for development companies,” added Nair of JLL India.
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