Aimed at protecting home buyers from real estate developers who fail to deliver on time, and regulating the country’s murky real estate sector, developers and real estate consultants hailed the passage of the regulatory bill in Rajya Sabha, saying the law will cheer the realty buyers, especially homebuyers in bringing credibility to property business and protect consumers’ interest.
However, global realty consultants like Jll has expressed that the move will bring victory to both buyers and builders as well. Jll Chairman and Country Head Anuj Puri, termed the move that the passage of the bill as ‘unequivocal victory’ for Indian realty sector. “Its enactment as a law will almost single-handedly revamp the way this sector works across the board, from developers to end-users and investors, to lending institutions and Government agencies involved in the buying and selling of property,” Puri said.
The Real Estate (Regulation and Development) Bill makes it mandatory for residential and commercial projects to be registered with a real estate regulator which will monitor transactions and settle disputes. In recent years, several projects have been delayed, leaving home buyers in the lurch with no protection.
Another international consultant CBRE South Asia chief Anshuman Magazine said, “The Bill will have a far reaching implication for the sector. It will help regulate the sector and promote transparency. If implemented in the right spirit, it could facilitate greater volumes of domestic and foreign investment flows into the sector. Home buyer confidence in property market is also likely to revive.”
Knight Frank India CMD Shishir Baijal said, “Finally the wait is over - an extremely important and timely step taken by the Government that could prove to be a game changer for the industry.
Realtors’ apex body CREDAI President Getamber Anand also welcomed the move and said the bill would bring credibility to real estate business and endorse our demand of giving infra status to housing. But some developers expressed dissatisfaction over inclusion of the ongoing projects in the bill. For, they wanted the Government authorities, which sanction the project, to be brought under this bill.
However, the new law would boost home buyer confidence as well as investment in the realty sector, they said, but added the Government should ensure the regulator does not become another layer of bureaucracy.