Understanding RERA’s Impact on Mangalore’s Real Estate Market

Mangalore has always been a happening city, with blooming industries, a thriving port, innumerable educational institutions, and a significant growth in the tourism sector. With all these developments in the city, the real estate market of Mangalore has also been growing steadily over the years. However, with the introduction of RERA (Real Estate Regulation and Development Act) in 2016, the real estate sector of the city has been going through a transformational phase.

RERA was introduced to bring about transparency and accountability in the real estate industry, which was otherwise an unorganized sector. It aims to protect the interests of home buyers and ensure timely project completion, and the delivery of quality homes to customers. Any developer wanting to build a residential or commercial project must receive all the necessary approvals, and also comply with various guidelines, ensuring financial accountability, quality, transparency, and timely delivery.

Though RERA has come as a boon to the buyers, it has its limitations. Being a new law, the RERA regulatory authority is yet to be constituted in Karnataka. Therefore, the implementation of the act and the monitoring of builders has not started as intended.

However, several builders in Mangalore have proactively registered their projects under RERA, thereby building trust and confidence with their customers. These developers have already begun following the timelines for project completion and ensuring their legal compliance.

“RERA has been acting as a catalyst for both buyers and builders in Mangalore,” says Vinod, a city-based real estate agent. “Customers have become more aware of their rights and are investing in projects which come under RERA. Builders, on the other hand, have become more accountable and transparent.”

One significant effect of RERA in the city's real estate is a shift towards affordable housing projects. Homebuyers are now shifting focus towards budget-friendly housing projects, and the registered builders under RERA are attracting customers with their transparent pricing policies.

According to a survey done by Liases Foras Real Estate Rating and Research Pvt. Ltd., the unsold residential stock in the city has reduced considerably since the implementation of RERA. The survey also revealed that smaller builders have to find it challenging to register their projects under RERA, thereby taking a hit on their sales.

“RERA has brought in more discipline and transparency into the real estate sector in Mangalore, which was otherwise a relatively unorganized sector,” says Manish, a city-based advocate dealing with RERA cases.

In conclusion, the introduction of RERA has brought about a positive transformation in the Mangalore real estate market. Though the implementation of the act is still in its nascent stage, it has created awareness among buyers and brought about accountability in the construction industry. By registering their projects under RERA, developers have been able to build trust and credibility among their customers. With the advent of affordable housing projects, RERA has made it easier for people to invest in properties, which were otherwise thought to be unaffordable. Though certain challenges still exist, RERA has proven to be a much-needed reform in the real estate sector of the city.