The post-RERA real estate sector is witnessing major transformations with the introduction of strict laws regarding purchase, transaction and project delivery time that favor home buyers over real estate developers. However, it is undeniable that RERA act holds promises of better opportunities for real estate developers, especially in the long run.
India’s GDP has grown by 7.2% centred on a core sector growth in real estate constructions. With the Regulatory Authority actively functioning in the real estate sector, there is a significant increase in the confidence of homebuyers. RERA-Compliant developers immediately get an edge over other developers in gaining the trust of end-use customers. Overall, with RERA bodies coming into effect, a prominent revival of residential real estate can be seen.
A major hurdle for real estate developers is getting funds upfront at the start of a project. RERA act has been aided by financial reforms like the introduction of GST and FDI liberalization which has resulted in ease of doing business. Demonetization has increased transparency in financial transactions. This is encouraging more global and local investors to invest in projects in India. Hence there is greater institutionalized capital inflow giving way for a smoother execution of realty projects.
RERA has deemed all forms of real estate referrals illegal. But referrals form a crucial part in the growth of real estate business. The solution is easy. Developers are required to tie up with a referral platform that is RERA-compliant. In fact, Loyalie IT Solutions provides a RERA-compliant referral platform. This digital platform facilitates transparent tracking of referrals that will help your business to grow in a process that is legal.
Strict laws brought to effect by RERA have helped in organizing the functioning of the real estate sector. With the less sincere developers being driven away, there are fewer project launches carrying false promises. On the other hand, genuine developers gain loyalty and trust of home buyers through timely delivery of projects. Thus, sincere developers solidify their reputation which helps in corporate brand building.
If you have any confusion or would like to know more about such processes, contact us for a free consultation by clicking here. We are here to help you reach your real estate goals.