2016 will be known for the major events that brought major advancements in the Indian realty world. This evoked with the announcement of Smart City mission, then Real Estate Regulatory Bill, Goods and Service Tax Bill, Benami Transaction (Prohibition) Act and concluded with demonetization.
The year 2016 will be recalled as a defining year responsible for bringing drastic and immoderate changes. Let’s have a brief look at the major happenings of 2016 (99acres.com)
As per the experts, 2017 is going to be an outstanding year for the builders, brokers and primarily for the potential buyers and the credit goes to various real estate bills passed by the government. Let’s have a look at the key highlights for developers and investors.
Imperative Disclosure by the Builder
According to it, the bill requires compulsory disclosure of all the registered projects by the builder. This will include details of the promoter, layout plan, agreements, approvals, architectural plans and structural engineering. It is done by the registration of the real estate projects that comes under Real Estate Regulatory Authority (RERA).
Structural defects are a great perk or can say advantage for the buyer which states that the builder is liable for the structural defects for the five years. Earlier it was just for two years, but now the time limit has been extended.
Mandatory Deposit of the Funds
Now it is necessary for the builder to deposit 70% of the amount raised from the buyer into an escrow account. This has to be done within a duration of 15 days in order to confirm a timely delivery and to cover the construction cost of the entire project.
Single Window Clearance
The regulatory bills have a special provision for single window clearance, where the authorities will encourage a single-window system of clearance for the realty projects. This will ensure quick construction that lags at times due to delays in getting permission.
Payments with Interest in case of delay
If there is any delay by the builder in delivery of the project, then the equal rate of interest to be paid by the builder.
The Bill gives the control to launch one or more Real Estate Regulatory Authority in each State or one Authority for two or more than two States by the Government. This will include details about the purposes, authorities, and tasks to exercise oversight of realty transactions. The Bill shall also employ adjudicating officers to settle arguments between two parties, and to execute penalty and interest.
Despite of a sluggish real estate market, 2017 will surely shed off the dark clouds and will pose a clear and brighter picture. One possible reason behind the progresses could be “Housing for all Scheme”, the mission of scheme is to provide home for the poor people, slum rehabilitation and subsidy for house construction. According to scheme, it has aimed to provide homes to 100 cities by the end of 2017.
As we have stepped into 2017, there is ample of things to look forward. There are a number of initiatives that have been taken up to grow the future of realty investment and become a leading economy of the world. The top builders such as Godrej Group, Lodha Group, DLF Group, Oberoi Group and more. With the onset of New Year, the potential buyers are opting for affordable residential property which are equipped with top-notch amenities.