The Indian real estate sector and its ancillary industries are in their cusp of transformation and expected to reach a market size of $1 trillion by 2030.
This industry that includes –
Introduction of RERA.
Policy changes, etc.
In cases of real estate-powered states like Maharashtra, MahaRERA has shown a significant impact on this state’s realty sector.
Impact of MahaRERA on the real estate sector
At its initial stage, this regulatory regime was provided for tribunals and ombudsmen to redress disputes related to the Maharashtra real estate industry. It was brought in to safeguard the interest of consumers by bringing in policies that apportioned responsibility on the part of real estate developers as well.
As of present, the impact of RERA Act Maharashtra can be listed as follows –
Increased transparency for home buyers
Transparency is maintained between the lender and the buyer. For years pre-dating the Real Estate Regulation and Development Act, customer grievances were addressed in courts. What followed were long-drawn cases wherein buyers were either not capable or did not have the financial sustenance for these legalities. The launch and inclusion of RERA into the system brought in a much-needed convenience.
It altered the real estate market and safeguarded the interest of potential homebuyers by providing them with these following leverages –
Right to a buyer in cases of defects in a property.
Buyer’s right in cases of failed commitments to complete or deliver a project.
Buyer’s right in cases of discrepancy in the title.
Right to information about occasional updates on construction on the property, etc.
Standardization of carpet area
The Real Estate Regulation and Development Act brought in a standard formula to calculate the carpet area of a property. It concluded the discrepancies over-inflated carpet area to increase property prices by promoters.
Cap on the advance payment
Post-implementation of the RERA Act Maharashtra, builders cannot avail of more than 10% of the cost of the project as an advance or application fee from potential buyers. Subsequently, there are mitigated hassles involved in arranging funds over a shorter span.
Additionally, with convenient access to considerable funding in the form of Home Loans from reputed financers like Bajaj Housing Finance Limited, arranging for finances no longer remains a concern. These advances come with a flexible repayment tenor, PMAY compliant, subsidized rate of interest and a high-value loan amount.
Apart from these features, this HFC also provides pre-approved offers. These offers ease the application process to avail financial assistance by making the application process simpler for borrowers. You can take a look at your pre-approved offer by providing a couple of essential details that include your name and contact number.
Reduced risks of insolvency of a builder
In multiple cases, there is more than one project running under the supervision of a promoter or a builder. While developers earlier had the provision to utilize funds from one project to finance another, with this regulatory regime in place, it is mandated that 70% of the amount collected from a homebuyer needs to be deposited in a separate bank account. This amount set aside can only be utilized for the project in question.
Grievance redressal in cases of both the buyer and the promoter
In cases of complaints with a project, both the buyer and promoter can file a complaint with MahaRERA. Subsequently, they can also lodge their complaint and further the case with the Appellate Tribunal. With these queued up leverages provided by this regime, opting for properties that bear a unique RERA registration number is a mandate for home buyers. With such benefits of the RERA Act for first time home buyers, they have the upper hand over any discrepancy related to the property, thereby mitigating chances of hassles – financial or otherwise.