DNA Micro Edit: RERA changing the face of real estate industry

Various sectors like hospitality, tourism, retail, aviation are adapting to the newly introduced Goods and Services tax (GST). However, the one sector that is adapting to different reforms is the real estate sector.

Industry experts were of the opinion that the real estate sector was affected majorly post demonetisation. But even before it could be back on its feet, the Real Estate Regulatory Authority (RERA) Act came in, followed by GST.

Since the implementation of RERA on May 1, the industry has come to a standstill. With RERA, new sections and rules are trying to bring transparency in an industry that has largely been operating on their own terms.

Now, via RERA, builders are constantly under the limelight and are required to put down everything on paper. This has bothered developers and their apprehensions are clearly visible.

Another factor which has taken the industry by surprise is GST. There have been speculations that property prices are north bound. This has sort of bereft the market with buyers. Meanwhile, the luxury housing segment has been doing fairly well and a few record deals have also come through.

However, relief in the affordable housing sector is still lacking The only way out is having better real estate policies which allow affordable homes and keep the industry in check.