The RE Bill paves the way for setting up of Real Estate Regulatory Authority (RERA) and Appellate Tribunals in states. The Bill provides that in case of a dispute, both the Appellate Tribunal and the regulatory authority will have to dispose a case within 60 days. Bill addresses concerns of future home buyers and ensures compensation for delayed projects
As a practice, at present, developers sell apartments on the basis of super built-up area but this will come to a halt now. The Bill clearly defines carpet area in the law. All this now points to the ability of the bill to revive the sector.
State-level RERAs are now expected to ensure timely completion of projects. Homebuyers will be able to know the status of the land, site and layout plan, schedule of completion, and details on approvals from various government agencies and thereby bringing hope of revival.
As demand in the market weakened, funding became a concern to developers. A breather on account of funding from investors may play an important role in the revival of the sector. Some say that the government’s recent decision relating to affordable housing and Real Estate Investment Trusts (REITs), along with the entry of regulator will work towards the revival of the sector.
With REIT and InvITs concerns on dividend distribution tax (DDT) on the dividend declared by the portfolio company to REIT and InvITs are addressed, the investor and buyer sentiments are better. It is the developers’ concerns that need attention and these are mostly pertaining to regulatory authorities and digitization of land records.
Will the bill address all the concerns to ensure that the industry revives? The sector is recognized globally as one of the largest employers contributing to the GDP of the country as well.
The Indian real estate space is growing and is expected to reach US $ 180 billion in 2020. With Government initiatives on infrastructure, investments, procedures to streamline the sector and to encourage transparency the sector can carve pathways by increased due diligence standards and a revamped accounting and management system.