5 Ways RERA is impacting Bangalore real estate
The Real Estate (Regulation & Development) Act is bound to bring in changes in the real estate industry of Bangalore through transparency and systemized accountability. The Act would also boost confidence in the lives of stakeholders in the realtor sector. The RERA aims at protecting the property buyers and investors and would bring in development in the real estate industry of Bangalore:
The RERA has brought about a new growth in the real estate market of Bangalore. It is an answer to the queries of all property purchasers and the buyers would get the relevant information as desired. The act would also bring about strict timelines for different projects and eradicate any delays in the construction processes of best ongoing projects in Bangalore. This will bring in more demand in projects due to the efficient delivery and would boost the confidence in buyers and investors.
RERA would bring varied changes in the functioning of the real estate sector in Bangalore. It aims at protecting buyers and investors who have purchased properties in the recent past. The regulator under this act would bring out effective ways to fasten the completion of ongoing projects and would bring in much needed relief to the home buyers.
The RERA have brought about transparency in the real estate industry and also improve the confidence of both the domestic as well as the foreign investors. Though experts in the field believe that the supply by realtors may decline as the developers of Bangalore adjust with the Act, but the demand would surely improve due to the enhanced confidence and trust in the property market. The prices, however, would remain stable.
With the implementation of RERA, the deceitful builders or developers won’t be able to take property buyers for granted. The buyer would be paying only for the carpet area and the builder can’t charge for the super built-up area.
In the long run, the RERA regular would benefit the real estate sector of Bangalore in a good way. With the investor confidence getting back in the realtor industry, there would be increase in institutional capital inflows and the industry would develop in a revival mode.
The cost for real estate developers have increased as the property sales are only allowed post registration and post approvals. The Act has eradicated pre launch sessions where the buyers earn an advance reasonable price for a property in the initial project phase. The increased holding costs would be transferred effectively to the customers leading to increase in prices.
The RERA would leave only the key players in the Bangalore realtor market. The small property dealers who earlier used to offer the additional profit would eventually die out due to the regulated competition and the buyers too would have limited options to choose from. The real estate developers would definitely be cautious initially and would carefully deal in their projects till they have a better understanding of the RERA components and aspects. The unorganised and small time real estate developers would find it difficult for managing their construction business after the effective implementation of RERA Act.