BENGALURU: The members of Confederation of Real Estate Development in India (CREDAI) hailed the implementation of the RERA - Real Estate (Development and Regulation) Act, 2016 and demonetisation of Rs 500 and Rs 1,000 notes.
Realtors had a deliberation on the impact of demonetisation on the real estate industry in Bengaluru on Friday and felt the move would affect industries and sectors across verticals, but its impact on real estate would be a positive one from a medium to long term perspective.
Addressing the media, J.C. Sharma, President CREDAI Bengaluru and Vice Chairman & Managing Director, Sobha Ltd, said the move was good and the industry does not see any negative impact in the city barring this quarter. The move will eventually result in interest lending rates coming down making housing more affordable to all. We only expect the market to consolidate further with this move, he added. “This announcement ensures that while bigger players will continue to gain ground, even smaller but organized developers will get a fair and level playing field giving rise to healthy competition and high quality delivery of projects. All this is expected to make the industry more systematic, robust and reliable creating an atmosphere that is conducive to FDI, institutional investors and the like,” added Irfan Razack, Chairman & Managing Director, Prestige Group.
Real Estate Regulation Act is a very significant Act. With an aim to protect the interest of home buyers as well as boost investments in the real estate sector, the Act came into force from 1 May 2016 with 69 of 92 sections notified.
The key feature of the Act is the establishment of an efficient mechanism for speedy dispute redressals and settlements. With clear cut roles, responsibilities and rights of various stakeholders including builders, promoters and real estate agents spelt out, the Act aims to make the industry more reliable and organised.
