FindMyProperty – Page 31

Home buyers’ group ‘Fight for RERA’ has insisted the government to announce March 10 as ‘Homebuyer’s Day’. This day is highlight the empowerment of homebuyers, who have being suffering in the hands of developers. The Real Estate (Regulation and Development) Bill was passed last year on March 10 after a long wait of 8 years. The Bill was introduced in Rajya Sabha by the UPA government on August 14, 2013 and was referred to the select committee of Rajya Sabha on May 6, 2015 after the BJP government came to power.

In a letter to Union minister for housing M Venkaiah Naidu on February 27, the home buyers’ group has also asked the minister to announce awards to be presented on this day every year by the ministry for such homebuyers or homebuyers group which have taken forward the agenda of fulfilling home buyers aspirations.

The committee report was listed in Rajya Sabha on July 30, 2015, and received the cabinet approval on December 9, 2015. The Real Estate (Regulation & Development) Act, 2016 (RERA) was finally notified on May 1 last year.
Fight For RERA has played an active role in aggressively lobbying for the passage of the real estate regulatory Act. However, only four states of Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh and six Union Territories have notified the final rules so far.

Demonetisation and RERA (Real Estate Regulatory) have basically changed the dynamics. It has specially hit demand, End user markets have performed better than investor/speculator markets. Protect consumers have think that RERA will come into effect most states by May 2017. “That will extend working capital cycles. But implementation is the key and developers are holding back new launches till final implementation”. Developers prefer to restrict launches to clear inventories in on-going projects.

Commercial sector is also positive with 5% to 10% rent hikes. There is a limited supply o Grade A commercial real estate assets. It also sees retail and warehousing as possible dark horses. Good quality retail malls enjoy 10% vacancy while rent growth tracking trading density growth. The warehousing sector is attracting interest from investors.
Real estate market is probable to reach $180 billion by 2020 from $93.8 billion in 2014. Rise of nuclear families, rapid development and rising household income are likely to endure the key drivers for growth in all circles of real estate, including residential, commercial and retail.

For the period January to September 2016, total private equity (PE) investments in the real estate sector were detailed at $4.24 billion, showing a 22% increase compared to the same period last year. During the third quarter of 2016, accumulative investment in residential assets increased at 9% on a quarter-on-quarter basis. Government has also higher FDI limits for townships and settlements development projects to 100%.