The new law to regulate realty sector will bring transparency in the property market and reduce litigation while ensuring timely delivery of projects and eliminating fly-by-night operators, says a survey.
The FICCI-Grant Thornton survey report recommended that the compliance of this Act should not become one more layer of approvals to be obtained and rather should ease out entire approval process.
The Real Estate (Regulation and Development) Act, 2016 was passed by the Parliament in March this year and the law came into force from May.
The report 'Real Estate Regulation Act, 2016 (RERA) - Are we ready?' revealed that a majority of the respondents are of the view that the law would bring transparency and authority in doing real estate dealings and hence will reduce the litigations going forward.
"A major outcome of the survey is that industry feels that the rule of depositing 70 per cent of sales proceeds in a separate account will help in getting timely delivery of the project and eliminate fly-by-night operators in the real estate," FICCI said in a statement.
Stating that the new law will boost the governance hold on the sector, the report said that Foreign Direct Investments (FDI) into the sector would get a boost in near future and the ease of availability of financing options in the market would also improve.
"The move by the developers to comply by the provisions of RERA might push prices upwards in the short-term. But one can expect stabilisation due to the efficiencies brought in by the RERA," the report said.
While various international markets have varying types of regulations, the sector is optimistic that the RERA is a perfect cut to solve the issues plaguing the Indian real estate Sector.
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