RERA act is dynamically changing the complete landscape of realty sector and it is redefining the process of real estate sales in India. Every strata of realty sector, whether its stakeholder, government, banks, private equity to consumers are participating in adopting the new ways of operations which is RERA specific. According to Navin Raheja, Chairman, FICCI Real estate Committee, “In the very short span of 2years, it is showing a very positive response in the real estate sector, according to RERA, all state governments have to put their Act’s rules and regulations by May 1, 2017. The government of Karnataka has also notified their rules in July’17”.
Further to the latest survey on RERA, 45 percent of real estate developers do not have a formal process to check with the compliance with the RERA. The survey report by Grant Thornton in India and FICCI reveals that majority of real estate companies are using excel to report MIS(Management information system) reporting to review the RERA compliance. According to Neeraj Sharma, Director of Grant Thornton Advisory Private Limited, “RERA has its own sets of challenges which are creating tension in the sector. Due to the long-term impact of RERA, developer fraternity is very much positive.On a positive note, the developers are gearing up for this change and they have started making appropriate changes in their system and process. In addition, developers are also identifying the areas which need to be focused.”
More than 50 percents of respondents expressed their focused approach to enhance the skills of their internal team in which training is very much important. Moreover, 75percent of developers are training their employees to improve customer experience. 37 percent of respondents felt the need to hire independent experts to manage their projects.
More than 70 percent of the developers have changed their customer and vendor agreements. Now, developers and vendors are sharing their equal liabilities according to the contract.
The best response to RERA has been in Maharashtra where 12,000 projects have been registered and 350 RERA Complaints have been filed. In Karnataka, 1900 real estate projects have been registered, 730 in Uttar Pradesh, 400 in Haryana. RERA regulator is appointed and portal is launched in Punjab, Rajasthan, MP, Gujarat, and Maharashtra. However, RERA rules have not been notified in Goa, West Bengal, and Northeast states.