HYDERABAD: While the state government is learnt to be in the process of notifying the Real Estate Regulation and Development Act (RERA), though the deadline for the same was April 30, real estate developers are a worried lot.
A committee has been set up to prepare the draft rules which will facilitate the formation of a regulatory body to look into the working of the real estate industry. It is up to the regulatory body, to be set up under the Real Estate Regulation and Development Act, 2016 (RERA), to iron out the issues that the Act has failed to codify, say real estate experts in Hyderabad.
Though there is popular support for the Act that came into effect on Monday, industry experts remain cautious about the steps expected to be adopted by the state.
Key issues
One of the main issues that concerns the real estate industry is the market prices of the ongoing projects. “We had set some prices before RERA came into effect. Now, we are doubtful whether there will be a change in prices.
If there are changes, the losses will be borne by us,” said ReddyMuch to the disappointment of Hyderabad’s real estate industry, the state government has not notified the Act. The last date for the Act to be notified was April 30. Telangana is not alone, as only 13 states have so far notified the Act, Andhra Pradesh is one of them.
With the delay in setting up of a regulatory body, industry experts fear confidence eroding in the market. “There are a few issues that lack clarity,” said G Ram Reddy, president, Confederation of Real Estate Developers’ Associations of India (CREDAI). It is still not clear how many people will be on the regulatory board, how it will function as a unit and handle applications from real estate developers.
“There will be some who will exploit the situation, for instance, there is a five year liability clause for the developer. But suppose the house owner or the people staying at the property on rent don’t maintain the premises properly, then for five years we will have to bear the costs,” said Ram Reddy.
“We hope things will be more positive, once the regulator comes into effect,” he added.