11 Important Aspects of Real Estate Bill

After much scrutiny, the real estate bill was finally passed by the parliament recently. A lot of changes were made to it so as to make is abide by the law. Following points will help us understand it better:

1. According to the economic survey, real estate contributes 8% to the total of Indian’s GDP which was 9.1% in 2014 – 15 and is now expected to grow.
   
2. If the domicile market begins to turn around (dynamism with respect to buying and selling in domestic market), the growth prospects are stronger and brighter for our GDP.
   
3. Even though people are holding on to properties and there is not much sale leading to increase in unsold housing units, there has been huge inflow of money into the market leading to an impact on price.
   
4. People are holding on to properties waiting for buyer sentiments to improve which is a sign of prospective increase in ROI since the demand for vacant homes will now rise.
   
5. Data suggests positivity with an observation of 60000 crores of investment in real estate in 2015 by domestic as well as international investors which is the highest level of investment in last 7 years.
   
6. Yet another good aspect is that the National housing bank has also reduced the “risk weightage” of housing loans to 30% from 50% for loans up to 75 lakhs, for banks and housing finance corporations. This means that the banks and financial houses will be able to lend out loans more easily with less paper work, thereby inviting more buyers searching for apartments, flats and other types of residential as well as social and commercial units.
   
7. Also “Loan to value” quantitative has been increased to 90% for loans up to 30 lakhs i.e. now a loan can be sanctioned for up to 90% of your house value, which was less earlier. This is expected to invite more buyers.
   
8. Government plans to provide up to 6 crore houses by 2022, and plans to develop 98 cities under all schemes. Initially 20 cities will be developed.
   
9. The bill has some more bright aspects like obligatory registration of project bigger than 500 sq meter, or one that has 8 or more flats. It was earlier obligatory only for projects over 1000 sq meter or 12 flats n above.
   
10. This will result in better supervision of the project by the regulatory authority.
    
11. The provisions like, better understanding of carpet size (the ground covered under construction), penalty for structural flaws and compulsory consent for change in construction plans, will also help boost the confidence of buyer into investing in a project.