The Impact of RERA on the Price of Flats in Kolkata

by Neha Sharma Digital marketing head

Ever since the introduction of RERA act, the media has been going all guns blazing claiming this to be the next big thing in the world of real estate.

So, if looking to invest in an apartment near Sonarpur or any other parts in Kolkata then you must know about the RERA Act.

What is RERA Act?

The Real Estate Regulation and Development Act (RERA) came into force on 1st May 2017. The guidelines of this act have to be followed by every state and the union territory in the country. The main aim of this act is to boost investment in the field of real estate and also protect the interest of home buyers in India.

One of the biggest aspects of this act is that it accounts for a single legal regime for purchase of flats and apartments in any part of the country.

Need for RERA

Home buyers complaining about the loopholes in the real estate sector and real estate transactions have been a very common issue in the past. RERA was created with the intention to combat these issues. The model code aims to create a fair transaction between the buyer and seller in the primary market. This makes real estate dealings simpler and more convenient. RERA brings in transparency and accountability as there is a unified law. Just like the SEBI in the securities market, there was a long need for a controlling body in real estate.

This law makes it mandatory for every union territory and state to form their frame of rules to govern the regulator.

Every real estate property that exceeds the total area of 50 sq mt has to get registered under its respective state’s RERA. The existing project where Occupancy Certificate (OC) or Completion Certificate (CC) has not been issued also has to get the registration completed under this ACT.

Another reason for the implementation of RERA was to eradicate the unnecessary delay in the completion of real estate projects due to improper utilisation and unequal distribution of funds. According to RERA, promoters need to deposit 70% of their total receives from a project into a separate reserve account. However, the proceeds from such accounts can only be used by the promoter in land and construction expenses and it is only possible when duly certified by a professional. This makes the process very clear and encourages real estate investment.

Move into a New Flat in Kolkata

RERA has certainly bolstered the growth of real estate sector with more investment coming in. As a result, many top investors are investing in new projects. Suburbs like Sonarpur and Garia are witnessing maximum real estate development as new projects are popping up at regular intervals. If looking to invest in an apartment near Sonarpur then no need to dig deep in the pockets. The flats are coming up at a very affordable price.

These modern apartments are special. Be it modern amenities or excellent connectivity, they provide a complete living solution. 

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Created on May 8th 2019 01:25. Viewed 381 times.

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