How did the Real Estate Industry Respond to RERA?

July 02, 2018 admin Property Insights

The RERA had been implemented last year, and it has just completed one year of its inception. It has come up with a number of regulations in the real estate industry, aiming to bring about more transparency in the sector. Here, you will get a detailed idea about the reaction of the real estate industry to RERA. If you are willing to buy a home from one of the property buying sites, make sure that the developer is registered with RERA. Well, you should note, that the market in India is driven by consumers and the affordable housing sector is gradually opening up over the years. In order to survive in the competitive market, the developers need to get into this affordable housing sector. As a developer, you must be aware of the trends of property investment in India. The government is taking measures to make real estate affordable for the middle and low-income groups. Evidently, the developers are coming up with real estate projects, where the prices of property are within the affordability of the middle-income groups.

In the global market, consolidation has taken place in Australia, China, Dubai, Singapore and the South East. Here, the market remains scattered or fragmented. In a shrinking market, consolidation is observed for growth and it is better suited for stable markets. In India and other developing countries, the room for growth in the real estate sector is always evident. At the same time, new players are added to the industry. If you are willing to buy a property in the country, reach out to the real estate consultants in India for a comprehensive assistance.

In India, symptoms of consolidation are evident to a certain extent, particularly on the project level than the entry level. This is preferred between developers, who have separate sets of expertise. However, acquisitions and mergers at the corporate level are turning out to be unrealistic, as the model itself has technical issues in it. After the implementation of RERA, the industry has witnessed an increased professionalism. You should remember that RERA is only a single window. The developers may also seek assistance of the judiciary, in case of stalemate. Innovation is taking place in the real estate industry, as the developers are venturing into non-traditional classes of asset, such as education and student housing. The micro-markets require customized solutions as they come with their own needs. Have a look into the best property portals in India and buy the properties that suit your needs.

Besides, increased capital is driving professionalism in the real estate industry. One of the new trends in the industry is the foreign funds, that are chasing distressed assets. Previously, the speculation about RERA was that it will lead to mass consolidation in real estate. However, the consolidation has taken place only in 40 developers in office, 6 in industrial real estate and 8 in retail. For consolidations, retail has got more opportunities, due to standardization. If you are willing to go for real estate investment in India, you should be aware of these trends.

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