RERA to make the market accountable, bring in financial discipline
15 Jul 2019
2 Min Read
CW Staff
The implementation of the Real Estate Regulation Act (RERA) in the country has picked up pace, with 90 per cent of the state and Union Territories notifying the rules, according to a JLL analysis of the data provided by the Ministry of Housing and Urban Affairs, Government of India. Of these, 69 per cent already have operational sites, making it easier for stakeholders to access and register their projects. According to Ministry鈥檚 data, till 30 June 2019, 43,398 real estate projects and 33,270 real estate agents have been registered under RERA across the country. The analysis said, the actual impact of RERA, however, would be even more discernible over the next few years, as projects will meet delivery timelines mentioned in the RERA registrations and cases of effective dispute resolution between the buyers and promoters will increase.
Ramesh Nair, CEO & Country Head, JLL India, said, 鈥淭he key objectives of RERA 鈥� enhancing transparency, bringing in a financial discipline in the market and infusing accountability among stakeholder would become the new norm if the Regulation is implemented effectively.鈥� He added, 鈥淔or the residential segment, RERA has played a level-playing field among the homebuyers and the developers. Consequently, India鈥檚 residential sector saw rejuvenation after an initial challenging phase. With regulation reinstating homebuyers鈥� confidence in the segment, markets witnessed robust recovery in sales in 2018. The resurgence in sales continued in first half of 2019 too.鈥�
Sales of residential units increased by 22 per cent compared to the corresponding period in 2018. During the period between FY 2011-12 and FY 2018-19, the outstanding home loans increased at a CAGR of 18 per cent to Rs 19 trillion from Rs 6 trillion indicating strong housing demand.
The analysis mentioned that for the residential segment, RERA has so far played a level-playing field among the homebuyers and the developers. Consequently, India鈥檚 residential sector saw rejuvenation after an initial challenging phase. With the NDA government returning for its second term, RERA implementation will be effectively executed across the states, the analysis added. Reforms and measures to promote affordable and mid-income housing in the country so far will help homebuyers to invest into the market.
The implementation of the Real Estate Regulation Act (RERA) in the country has picked up pace, with 90 per cent of the state and Union Territories notifying the rules, according to a JLL analysis of the data provided by the Ministry of Housing and Urban Affairs, Government of India. Of these, 69 per cent already have operational sites, making it easier for stakeholders to access and register their projects. According to Ministry鈥檚 data, till 30 June 2019, 43,398 real estate projects and 33,270 real estate agents have been registered under RERA across the country. The analysis said, the actual impact of RERA, however, would be even more discernible over the next few years, as projects will meet delivery timelines mentioned in the RERA registrations and cases of effective dispute resolution between the buyers and promoters will increase. Ramesh Nair, CEO & Country Head, JLL India, said, 鈥淭he key objectives of RERA 鈥� enhancing transparency, bringing in a financial discipline in the market and infusing accountability among stakeholder would become the new norm if the Regulation is implemented effectively.鈥� He added, 鈥淔or the residential segment, RERA has played a level-playing field among the homebuyers and the developers. Consequently, India鈥檚 residential sector saw rejuvenation after an initial challenging phase. With regulation reinstating homebuyers鈥� confidence in the segment, markets witnessed robust recovery in sales in 2018. The resurgence in sales continued in first half of 2019 too.鈥漇ales of residential units increased by 22 per cent compared to the corresponding period in 2018. During the period between FY 2011-12 and FY 2018-19, the outstanding home loans increased at a CAGR of 18 per cent to Rs 19 trillion from Rs 6 trillion indicating strong housing demand.The analysis mentioned that for the residential segment, RERA has so far played a level-playing field among the homebuyers and the developers. Consequently, India鈥檚 residential sector saw rejuvenation after an initial challenging phase. With the NDA government returning for its second term, RERA implementation will be effectively executed across the states, the analysis added. Reforms and measures to promote affordable and mid-income housing in the country so far will help homebuyers to invest into the market.
Next Story
Reliance, Diehl Advance Pact for Precision-Guided Munitions
Diehl Defence CEO Helmut Rauch and Reliance Group鈥檚 Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence鈥檚 long-term commitment to the Indian market and its support for the Indian Government鈥檚 Make in India initiative. The partnership鈥檚 current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the 鈥淰ulc..
Next Story
Modis Navnirman to Migrate to Main Board, Merge Subsidiary
Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company鈥檚 growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..
Next Story
Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025
The Bharat InvITs Association鈥檚 industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States鈥� share of global activity below 15 per cent. Meanwhile, in..
