Key bills help the realty sector for recovery
New Delhi- With a lackluster realty market last year, the Indian realtors are expecting better market sentiments this year.
They have been banking on the important legislation which is supposed to be introduced by the government in the upcoming budget session of the parliament. The budget is expected to create a larger impact on the real estate growth.
As per sources, the current real estate market in Delhi and other states is witnessing a slump and that the upcoming two months are really important for policy making which will eventually help in creating an optimistic hope amongst the developers.
A watchdog for the realty sector will be enforced by the center for accountability norms and fair practices through the Real Estate Regulatory Bill. However, the draft regulation has been pending since 2009 followed by a delay in the new Land Acquisition Bill.
The realty market sentiments will be boosted through the safe passage of the two bills. As per a realty developer, the sector is looking for a comprehensive regulator which can act as a single clearance agency as well as settle disputes between real estate players and consumers.
He also said that they have to opt for multiple agencies to get project clearances. With the comprehensive regulator being effective, it can direct the planning authorities while issuing the project clearances without any delay. The decision will be left up to the government.
There are various disputes which are to be settled between the consumers and the Competition Commission of India (CCI), consumer courts or civil courts. This also results in waste of time and money. Hence to avoid these hassles, the regulator should work as a singular dispute settler for the sector which will prove to be cost effective.
It was stated that if the government implies the required policy changes, the country’s realty sector will boost. Also the UPA government’s decision of letting the foreign direct investment (FDI) in multi-brand retail will result in the development of the sector despite the retail sector construction being a very small portion of the entire gamut of the industry.
The upcoming Real Estate Regulation Bill which is to be announced is expected to bring more transparency in the business as well as attract FDI in the sector. Also the Land Acquisition Bill will result in an increase in land prices for real estate developers.
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