RERA has the ability to address these unstructured practices and completely change the landscape of real estate sector, including the way the business transactions are being done
RERA is undoubtedly one of the most significant regulatory developments for the real estate sector. Over the years, real estate sector has been characterised by myriad unstructured practices, which has given a very different perception of the sector to the larger stakeholders of the economy. These practices have led to increase in the number of litigations, marked with worsening customer sentiments as seen in the recent times.
RERA has the ability to address these unstructured practices and completely change the landscape of real estate sector, including the way the business transactions are being done. Post RERA implementation, there have been 12,000 projects registered in Maharashtra and more than 1,900 in Karnataka.
Like any other major reform, RERA has its own sets of initial challenges, which are causing disruption in the sector. However, everyone including the developer fraternity is positive about the long-term impact of RERA. As per our latest survey with regards to RERA and the industry’s preparedness, 45 per cent of the real estate developers have no formal process in place to manage compliance mechanism of RERA. Around 44 per cent have made some modifications to their Management Information System (MIS). It also revealed that that majority, around 78 per cent, of the board members and senior management are still using common methods like excel-based MIS reporting to review their RERA compliance.
Also, when asked about the initiatives taken to strengthen project planning for timely completion of projects, more than 50 per cent of the respondents expressed that a focused approach to enhance skillsets of internal teams with trainings is crucial. In fact, over 75 per cent developers have used training as a tool to improve customer experience.
This publication based on survey findings indicated the status of preparedness of the developers towards compliance of RERA. It has also pointed out some very interesting perspective on how developers are gearing up for this big change and making appropriate changes to their systems and processes in addition to identifying areas where more focus is needed.
RERA is changing the entire landscape of the real estate sector and redefining the process of how real estate sales take place across the country. Every stakeholder, right from the government, bankers, private equity investors to ultimate consumers, are unlearning the old ways of operating and aligning with the new systems and processes that are RERA-specific.