Reading glass on In­dia’s real es­tate

NBM&CW - - REAL ESTATE - Hishir Baij al hair an an ag in ir to KnightFrank(In­dia)Pvt.Ltd an

Real es­tate in ndia is prob­a­bly on the cusp of wit­ness­ing a mytho­log­i­cal churn­ing. The fruit of ag­gres­sive pol­icy ini­tia­tives aimed at cleans­ing the in­dus­try for home buy­ers, de­vel­op­ers and the econ­omy as a whole alike.

et us take a look at the new dot­ted lines that are en­gi­neer­ing a meta­mor­pho­sis in the sec­tor.

enam i rans­ac­tions pro­hib ition) ct

This move de­scribed by many as a sec­ond salvo against black money af­ter de­mon­eti­sa­tion is ex­pected to bring a few sub­stan­tial changes in the sec­tor.

Cen­tral agen­cies have al­ready at­tached lands worth sev­eral thou­sand crores in the na­tion­wide crack­down that be­gan last year, soon af­ter the reg­u­la­tion be­came a re­al­ity.

First, the strin­gent ap­proach to ex­pose shady in­vestors park­ing un­ac­counted cash in prop­er­ties bought un­der dummy names will land deals from gather­ing dusts. t is known that many lands parcels take ages to change hands of­ten be­cause the ti­tle is not clear. The crack­down will hope­fully make land deals less cum­ber­some. Seam­less ac­cess to land parcels for de­vel­op­ers is healthy for residential mar­kets. t is also e[pected to win lenders¶ con­fi­dence.

To­day, banks and other lend­ing in­sti­tu­tions are forced to spend time and re­sources snoop­ing over prop­er­ties cour­tesy a cul­ture of dis­trust over own­er­ship. The reg­u­la­tion could Ee handy in writ­ing off that his­tory.

Con­fis­cated land parcels might add a fil­lip to the govern­ment¶s af­for­daEle hous­ing scheme.

RERA

Tra­di­tion­ally laced with lay­ers of trust deficits the ,ndian real es­tate sec­tor badly needed a glass door. More than half of the states and union ter­roties have al­ready no­ti­fied their ver­sions of the Real Es­tate (Reg­u­la­tion and De­vel­op­ment) Act, 16 , and the oth­ers are in ad­vanced stages of

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