Wednesday, October 12, 2016

Property Developers scurry to Complete Ventures before new law come into effect

Property Developers scurry to complete before new Real Estate Bill

The new real-estate regulatory bill has put property developers in frenzy, as they are speeding up construction work to avoid these new regulations. It may be a boost for the buyers who have invested in these projects though, especially if they had invested in a venture which had been delayed.

This new bill is said to put ease on the new buyers as it secures their rights as home buyers, as it mandates registration on ventures which includes those projects too that have not acquired a completion or right to occupancy certificate.

Real-estate experts claim that registration of these ventures may still take time of 15 to 18 months, as those ventures which are 60% to a 70% complete will have enough of time to register their properties. Registration means the developers will have keep aside the funds collected by the buyers and pay interest in case if there is any delay. Now according to the law a customer can easily launch FIR against a builder if the builder is fails to fulfill the legal norms.

According to reputed property Research Company, it says that in the top 27 cities of India there are close to 17,000 projects which are under construction and in that 56% to 60% are complete. An experienced real estate analyst of Mumbai based company has said the real-estate bill will be a boost to finish construction more quickly as registering existing projects might delay them further.

This real-estate regulatory bill has been passed by both houses of the parliament and is seeking approval from the President. Once everything is in place sections relating to registering of real-estate projects and agents and the responsibilities of the promoter will be informed. Completion of ventures will be dependent on many factors which includes a financier being lined up.

According to the real estate folks, many ventures all over India that are 60%-70% complete, and it will speed up its projects completion before the bill is in effect. When projects under construction register with the regulator, they need to comply with the same rules as new projects.

Builders are expected to deposit 70% of the amount collected from the buyers in a separate account to cover the cost of construction which includes land too. Property Developers will also have to pay the same interest rate for any delays on their end similar to when the buyers do when they fail to pay the builder.

The National President of the Confederation of Real Estate Developers association of India, Getamber Anand, said the desire of developers will be to complete existing projects in the frame-time available to them. Around 15 to 18 months should be perfectly fine for builders to complete ventures that are 60% complete. If the pace of construction is picked up it could see an increase in demand for raw-materials like cement and steel revitalizing economic growth, says Pankaj Kapoor, the Managing Director of Liases Foras. It all depends how wise the developers are with the money as many of the real-estate developers are strapped for cash.

TGS Layouts is a property developer of Bangalore it has many completed projects in the city you can read TGS Layouts Customer reviews to know about the company more closely. It develops residential layouts and sales plots of land for investors.

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