Shahid Balwa Reveals: RERA and the Future of Indian Real Estate

The real estate sector in India underwent a turbulent time due to various policy changes. Its pace has slowed down to a great extent and there were even periods of stagnancy. This was evident due to the accumulation of inventory in cities where the sector usually thrives. Recently though, it is recovering at a good speed. In the words of Shahid Balwa DB Realty Ltd, the real estate sector is all set for revival, thanks to a lot of internal and external factors.

Have a look at them:

The main factors that held the sector back and caused this slack in the industry are the poor governance mechanisms and small inefficiencies within the sector itself. One external force that has helped bring the scales back in balance was perhaps the Real Estate Regulatory Authority (RERA). This regulatory authority was put in place by the government to enable more transparency within the industry. This redefines the engagement among the stakeholders and brings improvements. This has proved to be a positive development.

It has impacted residential developers, since they have to adhere to the norms and regulations of RERA in order to operate in the market. Moreover, it ensures that only genuine developers with competent work will survive in the real estate market as the corrupt players will find it in their disadvantage to operate.

Yet, there are some unresolved issues that still hold back certain aspects on the industry. The RBI is thus monitoring lending policies in the public banking sector and trying a great deal to get rid of the problems associated with NPA. Public sector banks have traditionally been a source of capital to the real estate sector, and the support of these banks has always been held as crucial. This is especially so since the Global Financial Crisis of 2009 and various economic ups and downs since. Regulators have been monitoring the banking sector’s exposure and also have been scrutinizing loans.

It is also necessary to keep a check on the management of public sector banks. The past has seen that loans are being given out easily even to dubious and lofty projects. Because the cheap capital from banks has been replaced by the expensive capital from NBFSs, developers are having a bit of a difficult time dealing with finances.

Consumer and customer activism is another factor that lends a certain sense of optimism to the industry. Authorities have failed to bring the required reforms time and again, due to which investors have become impatient with the complacency. With the implementation of RERA and better circumstances in the industry, a scope for betterment can be predicted.

To stay abreast with the latest happenings in the real estate sector, or to find specific information about prominent realty projects or developers such as Shahid Balwa, you can do a quick internet search. Be informed about the trends in the sector and the various changes to make smart decisions and investments.

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Created on Jul 19th 2019 05:53. Viewed 404 times.

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