What Changes can A Buyer Expect Post RERA?
Jun 28, 2017 Real Estate News
India’s most awaited law, RERA came into full force across the country from 1st May 2017. It’s still quite early to predict what will be the underlying effects of this, but there are surely some unavoidable benefits that the buyer can expect. The RERA rules are written down keeping the best interest of the buyers since for many years in the past their interest have been exploited by the developers. This has led to a considerable decline in the sale of properties and the developers now have a lot of unsold inventory. RERA is going to put an end to these. Though the buyers are supposed to understand the laws thoroughly, the major understanding of the law lies with the developer. Along with some small changes, the buyers can also see some big changes when it comes to the practices of the developers.
1. Right pricing:
The ever increasing cost of properties in the real estate has led to a considerable decline in the buying and selling of the properties. This is very much due to the unrealistic prices quoted by the developers. To get more and more buyers interested in their projects, the builders get into price wars. For example, if the developer ‘A’ is launching a project and prices it around Rs 40 lakhs, another developer ‘B’ will change the price to Rs 35 lakhs for the similar project in the same locality. The buyers will obviously go for the latter one until there is the difference in the quality and services. Since the laws are now stricter, the developers will not be able to charge the buyers as they please, they will have to quote realistic prices. This will help in more transparency in the real estate sector.
2. A positive tone:
More than highlighting their own qualities, developers often highlight the negative of their competitors. It’s often like; we are providing these services while our competitors aren’t. The competition has increased folds over the last few years, owing to these habits. This has given rise to a negative tone of the real estate market.
But now the developers will now be busy in updating themselves to the laws of RERA not leaving them enough time to keep picking faults of their competitors. RERA will also bring them more vigilant about themselves and will urge them to improve their own qualities. Only the one who can survive will stay in times like this. This will bring more positive energy in the sector.
1. Right pricing:
The ever increasing cost of properties in the real estate has led to a considerable decline in the buying and selling of the properties. This is very much due to the unrealistic prices quoted by the developers. To get more and more buyers interested in their projects, the builders get into price wars. For example, if the developer ‘A’ is launching a project and prices it around Rs 40 lakhs, another developer ‘B’ will change the price to Rs 35 lakhs for the similar project in the same locality. The buyers will obviously go for the latter one until there is the difference in the quality and services. Since the laws are now stricter, the developers will not be able to charge the buyers as they please, they will have to quote realistic prices. This will help in more transparency in the real estate sector.
2. A positive tone:
More than highlighting their own qualities, developers often highlight the negative of their competitors. It’s often like; we are providing these services while our competitors aren’t. The competition has increased folds over the last few years, owing to these habits. This has given rise to a negative tone of the real estate market.
But now the developers will now be busy in updating themselves to the laws of RERA not leaving them enough time to keep picking faults of their competitors. RERA will also bring them more vigilant about themselves and will urge them to improve their own qualities. Only the one who can survive will stay in times like this. This will bring more positive energy in the sector.
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