BANGALORE: Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India May be, The Bill will pave the way for transparency by regulating the housing sector. It covers all projects over 4,000 sq m in size and seeks to cover major private residential developments across the country. It will provide considerable relief to the ordinary buyer/investor who faces innumerable obstacles while buying property and is duped even by small developers, builders and brokers.
The strict regulation for promoters means that the construction will not only be completed on time, but the buyer will get the property as per the promised specifications. Besides, the setting up of the Regulatory Authority and the Appellate Tribunal will create a dispute resolution mechanism and address the grievances of the consumer who had recourse either to a prolonged litigation in a court of law or consumer courts.
However, it does not provide any relief to developers in terms of expediting the approvals and permissions process. Developers face long and inordinate delays, besides the difficulty in obtaining approvals from multi-headed government agencies, and have stressed on the need for a single-window clearance to cut through the red tape.
As for the real estate prices, one cannot say whether these will go up or down once the Bill is passed. It would depend on the project and the developer. The unorganised developers, who have just one or two projects in their hands and don’t follow the rules of transparency, will certainly witness an impact on their bottom lines. They will increase the prices as their margins are bound to take a hit and they don’t have a reputation to build.
However, the organised developers, who are known to be transparent in their dealings, follow the construction norms and prefer to have the transaction through cheques, will not be increasing their prices because they won’t be impacted once the Bill comes in force. So the price hike in property would have to be seen purely on a case-to-case basis.