Hyderabad's Real Estate After RERA: Changes and Challenges

Hyderabad's Real Estate After RERA: Changes and Challenges

The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced with the aim of bringing transparency, accountability, and efficiency to the Indian real estate sector. The Act has had a significant impact on Hyderabad's real estate market, with many changes and challenges being faced by developers, buyers, and other stakeholders.

One of the most significant changes brought about by RERA is the requirement for developers to register their projects with the regulator. This has led to an increase in transparency, as buyers can now access information about projects before investing. Additionally, the Act mandates that developers must complete projects within the agreed timeline, ensuring timely possessions for buyers.

RERA has also put an end to the practice of charging buyers for super built-up areas and instead mandates that prices should be quoted based on carpet area. This has improved the affordability of properties for buyers.

However, these changes have also brought about several challenges for developers. The registration process is often lengthy, and developers must provide significant documentation and comply with strict norms set by the regulator. This has led to delays in project approvals, adding to construction costs and time.

Another significant challenge faced by developers is the requirement to keep 70% of the funds raised from buyers in an escrow account. This has led to a shortage of liquidity in the market, which has affected the launch of new projects.

Buyers have also had their share of challenges, especially those who invested in projects before the implementation of RERA. They must now rely on the developer to complete construction within time and to the promised quality.

Real estate brokers have also been affected as they must now register with RERA. This has led to a decrease in the number of brokers, especially those working without proper registration and documentation. Buyers can now have more trust in RERA registered brokers who provide transparent brokerage services.

In conclusion, the introduction of RERA has brought several changes and challenges to Hyderabad's real estate market. While it has improved transparency and affordability for buyers, it has also led to increased regulatory norms, delays, and liquidity crunch for developers. However, with increased compliance and accountability, the sector is expected to become more predictable, and the buyers and investors are expected to have a more predictable and safe real estate market to invest in.