RERA has been implemented and it has brought with a plethora of questions, both from homebuyers and developers. One such big question is whether residential property prices will go up after RERA implementation. Many want to know whether the ACT will directly or indirectly affect real estate pricing. The best possible answer to these questions are that yes, there will definitely be a higher cost of compliance, especially for small developers who have not obtained necessary permissions for their projects and who took short-cuts.
However, those who did collect all permissions won’t be affected due to their transparency in transactions. This has already been factored into their cost structures. Hence, there won’t be any further increase in cost. But it should also be noted at this stage that the slow sales that affected the residential property segment won’t accommodate price escalations, no matter what the reason is. Homebuyers are also eager to know whether they will wait for some more time or simply purchase their homes, now that RERA has been implemented.
There is a clear-cut way of answering this. It is highly advisable that homebuyers book their homes only from known developers who have maintained a good and credible track record. Hence, it will be a good decision to go for projects that are now listed on the RERA website. Established developers are aware of the RERA guidelines and are already complying with it before launching new projects. Buyers must exercise due diligence before choosing a developer. Buying a house now is definitely an option provided it is done wisely.
It is advisable to look beyond financial benefits and think about the long-term perspective based on pricing transparency, project quality and developer profile. However, what about those homebuyers belonging to states that are yet to notify RERA rules? These states are now under tremendous pressure to notify as soon as possible. Until they notify, it will be a good bet to stay focused only on reputed developers and their projects. Buyers can also refer to the requirements of their respective state’s RERA rules.
This will be a good indicator as to which of the projects fall under RERA and which ones do not. Homebuyers are also confused as to which broker they should refer to, as brokers also should register themselves under RERA. Brokers registered with RERA will have a certificate to that effect, reports The Economic Times. Currently, there is a mad rush to obtain these certificates, as the online booking system opened only recently. Thus to summarise, buyers must not look into projects that are not RERA compliant.