I was just wondering how Real Estate Regulatory Act (RERA) will
be enforced by 31st July 2017. Since, as per central govt.
guidelines, 31st July 2017 will be the last day to implement the Real Estate
Regulatory Act in their respective states otherwise central Real Estate
Regulatory act will be enforced. If we see the data, approx. 40% states have
not yet been finalized the final rule & worse scenario is hardly 6-7
states have started the on-line property registration for builders and even
worst is few of the states in process of drafting the finale rule of state RERA.
Now, only hardly few days are balance to implement the RERA across the country
and government itself is not ready to implement,
how a central govt. can expect builders & real estate agents to register
their property on state RERA website. Website itself has not yet been made in
most of the states of India. I think as of now only 6-7 states have made the
website ready to register the project or as an agent as a real estate
property advisor/consultant.
Scenario is now getting the worst for real estate industry after Demonetization, RERA and now GST implementation.
Whenever I read experts article on Demonetization,
RERA & GST that says it will boost the real estate industry, I only feel
that most of the real estate experts are the very positive and can see the long
term future. Everyone was expecting, property prices will come down by 20-25%
after Demonetization but not a single rupee came down in the property prices. After
5months, RERA enforced but unluckily government itself is not ready to
implement RERA and few months later, GST implemented. Again experts are started
saying property prices will come down but this time real estate experts are
very flexible and having different views on hike/reduce of property prices.
Still most of the experts’ statement says that property prices will reduce or
may be no effect on prices. I would love to ask very simple question to
these experts is how many builders have reduces the property prices after GST
perhaps not a single builders.
I would love to share a very interesting real
story. I happened to be at builder construction site in Jamshedpur,
Jharkhand. I was interacting with the one of the partner of the company related
to the project developments, rate, flat size, approval, sanctions, etc. I also
intentionally asked about RERA to understand that really all the builders are
aware the RERA. He replied very innocently what is RERA, further I tried to
make him aware about RERA that RERA is an act made central government & now
will be implement by state government and all the builder has to sell the flat
according to the RERA. Then he said my legal person will take of all these. My
main intention to share this story is most of the local builders in small
towns/cities are not aware about the RERA, how government can expect to
implement with what RERA meant to be. I think most of the experts will love to
laugh at his statements on Demonetization, RERA & GST once they really know
the ground reality in small towns/cities.
And on 18th July 2017, one customer
showed the booking form and receipt where GST has not been mentioned, service
tax was mentioned. After seeing this I got confused, is really GST implemented
1st July 2017 onwards? By forcing these rules on builders, it also
means government does not want that small/local builders not run their
businesses.
This is ground reality. Experts may not be aware of
all this.
It seems like Demonetization, RERA and GST are
only made to hamper the real estate industry, since without RERA
registration builders cannot advertise, sale or register the project/property/apartment.
Happy Property Selling!!!
