The Real Estate Market in India has seen a steady rise over the years. However, instances of project delays and rising overhead costs has called for stringent measures to ensure that a governing mechanism is established to avoid loopholes in the industry.
In a bid to boost investments in the real estate sector and protect home buyers, the Real Estate (Regulation And Development) Act, 2016 was passed in the Parliament, which has led to the formation of the Real Estate Regulatory Authority (RERA). Under this, all real estate projects in each state and union territory will be monitored by the respective governing authorities.
Mumbai is a major center for real estate investments and Maharashtra has been on a forefront to implement and adapt RERA. Thus, in order to ensure the smooth functioning of real estate operations in the state, the Maharashtra Real Estate Regulatory Authority (MahaRERA) came into force.
Maha RERA In A Nutshell
According to RERA, it is mandatory for every property in Maharashtra, which exceeds 500 square meters or eight units, to be registered under Maha RERA. A ninety-day window will enable real estate companies in Mumbai and other cities to register their ongoing projects.
It is also compulsory for real estate companies to update information pertaining to various projects on the Maha RERA website regularly, in order to give home buyers a chance to monitor the progress and ensure transparency.
Maha RERA not only allows registration of real estate companies but also agents for a term up to five years.
Consumers who have been complaining about delayed possessions in the past need not worry as RERA makes it mandatory for each project to have sufficient funding. Home buyers can check project layouts and approvals on the Maha RERA website, and update themselves with the latest developments. This not only ensures transparency between companies and prospective buyers but also encourages a trustworthy relationship between them.
While home buyers can ensure that they receive possessions on time, they can also file grievances for structural defects, as RERA provides a warranty of five years on a project.
5 Benefits That RERA will have on Investments in Real Estate:
1. Simplified Procedures:
RERA will make it mandatory for every state and union territory to have online registrations. With documentation processes made easy, consumers will benefit and save time.
With the RERA website going live, consumers can track the developments of the projects from any nook and corner of the world. All plan layouts and documents will be uploaded on the site, giving them no reason to worry about their investments.
3. Timely Possessions:
The biggest worry customers face while investing in real estate properties in India is their fear of delayed possessions. RERA will ensure that they will not have to face any possession-related problems.
A strong and authoritative implementation of RERA will build a strong trustworthy relationship between consumers and the developers, hereby encouraging more investments.
5. Grievance Redressal:
With RERA coming into effect, consumers will have an official authority to address their grievances and complaints pertaining to their real estate investments. This will enable them to act promptly and take better decisions.
It’s a known fact that Non-Resident Indians (NRIs) have always been keen on investing in real estate in India. Investing in a fast-growing economy and a chance to get higher returns on their investments are the prime reasons why NRIs have opted to invest in India.
As compared to other cities, Mumbai continues to be a favorite hub for NRI investors. NRI investment in Mumbai has significantly been on the rise.
RERA Magic on NRI Investments
While NRIs have continued to invest in real estate in Mumbai, RERA will increase their confidence by manifolds, as it ensures a transparent and a more investor-friendly system in place.
A healthy policy change is a big boost for a growing economy. And with RERA all set to transform the realty sector, it can be said that consumers will have a good time investing in a rich market like India, especially in Mumbai, which is a growing market for maximizing returns.