Karnataka notified the Real Estate Regulatory Authority (RERA) rules earlier this week. It has been welcomed and promises to be a catalyst in the property industry, pushing standards and business norms higher.
Harish Bijoor, a brand expert, shares some thoughts on what it entails for the realty sector and prospective home buyers
Will RERA add to the property investment potential of the city, especially for property investors based abroad?
RERA is the best thing that has happened to the real estate industry in a hundred years. Yes, in the short term, some builders will have to rethink the way they have built and sold properties. But, once they make that initial correction in the process, things are going to be very positive for the entire industry at large.This is a one-time correction literally a builder has to make.Once having done that, the real estate category becomes an industry in real terms.
RERA is the biggest magnet for property investors based abroad. Those who stayed away will now flock in, just as RERA gets implemented and settles in.
Is this a step towards a well organised real estate sector?
Does it mean stronger brands thaat command higher premiums?
Yes. RERA brings in a set of norms and rules. RERA recognises the rights of the buyer dominantly. It protects and insulates a buyer on several counts. It recognises liability.RERA compensates fault and default.
The strong real estate brands that exist in this space will continue to offer strong offerings. They cannot rely only on trust in their brand offerings anymore. When trust becomes something everyone offers or is forced to offer, the better brands that exist today will need to re-invest in taking their existing brand offerings to the stratosphere. These large players will need to really think brand now. The current stronger brands will need to up their offerings on the brand format to be able to elicit premiums. That is a challenge which will be met for sure. Real estate brands with foresight are already working on this aspect across India.
With the transparency it entails, will developers be able to cash in on a good track record?
good track record is a good thing to monetise. Bigger builders have a window time of the next two to three years to monetise that. After that, expect the quality water level in the industry to rise. Literally every offering will be what the others offer, by force of RERA of course. Transparency is something everyone needs to adopt. If I wish to check on any builder or property I will go online to the regulator’s website and check on everything that I must know.
Source : The Times of Group (Bangalore)