RERA’s concrete measures to give realty big boost

Investments in real estate will be as safe as gold and fixed deposits, says Telangana Developers Association

The Real Estate Regulatory Authority (RERA) will place the sector on a level-playing field, on par with other industry verticals, but the first two years will be a testing period for all the stakeholders, experts have warned.

After the challenging transit phase, the real estate sector will further flourish as the gross state domestic product (GSDP) growth rate is hovering over 10 per cent. The Credai, Telangana chapter, has demanded scrapping of GO 86 that stipulates a mortgage clause for builders. With the Real Estate (Regulation of Development) Act, 2016, being implemented, investments in real estate will be as safe as gold and fixed deposits, the Telangana Developers’ Association (TDA) said.

TDA president G.V. Rao said: “The first two years are expected to be challenging and stormy. RERA officials need to strike a balance between builders and consumers. Once RERA, which was established under the ACT survives the storm, then the real estate sector will further take off as it’ll be on par with any other industry with its own regulation system in place. Investments in realty will increase as this sector offers attractive returns when compared to gold and fixed deposits.”

The RERA will become operational in the state on August 1. All real estate projects been approved after January 1, 2017, will come under the RERA. Construction on plots that are bigger than 500 sq. yards and apartments with over eight flats need to be registered with the RERA. Registration is mandatory not only for builders but also for agents. It’s estimated that over 2,000 projects in Hyderabad are expected to be registered under the Act.

THE FIRST TWO years are expected to be challenging and stormy.