How RERA affects the availability of new apartments in Electronics City

The Real Estate Regulatory Act (RERA) may have slowed down the sales of new launches in Bangalore including apartments in Electronics City but many believe that RERA will help stabilize the industry in the years to come. The numbers coming out of the Silicon Valley of India can cause some discomfort to realtors in the short run though. The number of new residential projects launching in the city when compared to the first half of 2016 has come down by 23 percent when compared to the same time period in 2017. The number of new launches has been put at more than 13000 units in the first half of 2017. This is the second highest number in the country for the said time period. The RERA has put plenty of builders in a tough spot. As many as over 900 registration applications have been sent to the Karnataka RERA till about the end of August. The plight of developers who have started their project before the implementation of RERA but will be completing it after the act coming into effect is especially worrying by their own account. They were left in a lurch in the bid to make their projects RERA compliant. They adopted a wait and watch approach which has led to the drop in the number of new launches. So this means that those who are looking for a new home in the city might find it in short supply. Even though the short term impact of RERA is hitting the real estate sector hard, in the long run it is expected to blossom into an effective tool to govern the sector. The sector needed this positive piece of legislation to put in place checks and balances that will help solve all the problems that riddled the realty sector. Some of the problems facing the sector were a distinct lack of accountability from the builders’ side. They held the upper hand when it came to a lot of aspects of home buying. There was an imbalance in the relationship between the developer and the buyer with the buyer being at a distinct disadvantage. At the end of the day it seemed as though the buyer was left with no recourse when it came to addressing all the problems that buying a home entailed. There was trust deficit which was doing the industry no favour. The RERA aims to correct this relationship and restore a healthy balance to the arrangement between the two parties. This in turn will help change the trajectory of the business as a whole in an upward direction. Industry experts are of the the opinion that once clarity about the act sets in more apartments in Electronics City and other in demand parts of the city will come into the market. The act is still in the nascent stage and there is still a lot that has to be learnt about it. So once the doubts surrounding this act are cleared away, it will become beneficial to the builders and home buyers.