Demonetization And RERA Have Contributed Well To Real Estate Business

Demonetization And RERA Have Contributed Well To Real Estate Business

MUMBAI/BENGALURU: As a result of demonetization and Real Estate Regulations Act, the realty business has taken a new turn. The number of end-users has increased considerably to match the investors’ number in the recent past.

The second quarter of 2017 has actually faced a bit of challenge due to reduced pre- launches and launches, due to the stringent rules of RERA. However, in the long run, there is a big likelihood of this business seeing a lot of improvement. As against June 17, when there were 20000 units launched across the 7 major cities of India, there were only 3/4 th that number launched in the previous quarter.

The developers are slowly changing their modus-operandi to exactly match the rules laid out by RERA. Though it seems very challenging in the beginning, the developers hope that the situation will change to everyone’s good in the near future.

Anuj Puri, chairman — Anarock Property Consultants said, "As we have had a few major implementations like demonetisation and RERA within an interval of few months from each other, the realty business has slowed down considerably across the country. This situation will undoubtedly improve in future. As of now, the demand from the end-users is increasing more than before which is a very good sign".

Subodh Runwal, director, Runwal Group said,"With the implementation of RERA across the country, there can’t happen pre-launches before taking approvals from the concerned authorities. Apart from that, there are restrictions with regards to coastal regulatory zones, dumping grounds, height restrictions etc".

Two major cities Mumbai and Bengalure together contributed over 55% of the overall pie in the quarter. Mumbai contributing 32.5% of the units launched this quarter, followed by Bengaluru at 23%, and Pune at 19.5%. Compared to the first quarter of 2017, the units launched in three markets — Mumbai, Bengaluru and Kolkata were definitely higher in numbers than those in the other cities.

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