The Increasing Growth!

Share with us your opinion on the real estate market trends for the progressive year.

The demand for housing has, in recent times, seen a paradigm shift from investors to end-users who are largely opting for ready-to-move-in projects in order to avoid the risks of delay in possession and poor quality of construction work.

The central government has given a strong impetus to the affordable housing segment, that is, units priced at Rs 50 lakh or less, through a series of policy measures. As a result, today, the affordable housing segment accounts for around 50 per cent of the total number of residential units sold. While a large number of developers are investing in this segment of real estate, the government may have to announce some strong measures to further propel demand.

The Real Estate Investment Trust (REIT) model of investment in the real estate sector, which was formally approved by the central government in the year 2014, has been giving positive outcomes. In fact, fractional ownership and REIT can emerge as credible alternatives for commercial real estate investment in the longer run.

Tell us about your recent recognized mega projects?

Over the next 4 years, Signature Sattva will invest nearly ₹500 crore over the next four years to develop its first project in Alwar, Rajasthan under the state government’s affordable housing policy.

What are your views on government initiatives to develop the real estate sector?

The government is going to inject Rs 25,000 crore for real estate and the housing sector and it has been a positive step towards not just boosting sentiments but also in bringing more transparency in the entire sector. Providing funds for pending projects which are non-NPA and non-NCLT and fall under the affordable and middle-income category are not just an addition to the prevailing norms for affordable housing but will also be an add on for the entire real estate

How do you view the impact of RERA norms in the construction world?

The real estate and construction sector has widely welcomed the passage of Real Estate (Regulation & Development) Act, 2016 as all projects have to be mandatorily registered under it which will greatly increase transparency.

A homebuyer booking a residential unit in a RERA-approved project is clear that whatever is mentioned in the advertisement is ultimately whatever is made available at the time of taking possession.  It is mandatory for developers therefore to ensure that advertisements are not misleading and all facts mentioned are correct. In RERA-approved projects, there are no misleading sales pitches on the base of floor area and carpet area. All projects will have to be mandatorily sold on the basis of carpet area only. The homebuyer is clear from day one on the basis of which he is making payments for the residential unit.

The onus lies upon the developer to repair any kind of defects in the residential unit within five years after handing over possession to the homebuyer. This ensures that quality of construction is not compromised by the developer. In addition, in case of any dispute with the developer the homebuyer can complaint directly to the competent authority or the regulator instead of going to the court. It is mandatory upon the developer to resolve the dispute within a period of 60 days.

Creation of a dedicated escrow account containing 70 per cent of funds linked to the project is mandatory under RERA. It ensures that developers use allocated funds for the specific project and there is no diversion of funds collected for the project.