Maha RERA has profoundly impacted the real estate sector in India by resolving disputes, building a homebuyer’s confidence,, and promoting ethical practices in a disorganized and chaotic sector. This regulatory body has also impacted the affordable housing segment thereby impacting project approvals which increased the buyer’s confidence. In this blog let us delve into Maha RERA’s impact on affordable housing for homebuyers from the lower and middle income groups.
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Increased Transparency and Accountability
Before RERA came into operation, homebuyers faced several issues like project delays, changes in project plans, and lack of clarity on project approvals. All builders and developers must register their projects before advertising and marketing their newly launched projects. Builders are required to provide detailed information about the project, including approval plans, project timelines, and financial transactions. This level of transparency has instilled greater confidence in homebuyers, particularly in the affordable housing segment. Access to information has led to the reduction of fraud, misinformation and discrepancies.
Timely Project Delivery
Maha RERA has imposed strict deadlines for the completion of projects. Failure to do so will lead to heavy fines and in severe cases even imprisonment and heavy financial penalties. Developers are required to specify the completion date of the project at the time of registering their projects. For affordable housing projects, it is particularly mandatory to specify the completion date as it directly impacts the financial planning of the lower and middle-income groups. By ensuring that projects are completed on time, Maha RERA has helped in making affordable housing more accessible and reliable.
Enhanced Financial Discipline
By safeguarding the homebuyers’ interest Maha RERA has ensured that the rights of the homebuyer from the middle and lower income are well protected. Maha RERA has directed all builders to utilize 70% of the total amount paid by the consumer only towards the completion of the project. This financial discipline has led to the completion of projects on time thus making housing of affordable projects to the end consumer accessible.
Increased Developer Credibility
These stringent measures adopted by Maha RERA have instilled confidence in the homebuyers in the premier institution governing the real estate segment in India. Developers who comply with the rules and regulations laid down by Maha RERA are seen as more credible and trustworthy which has further enhanced their trust in the market. For affordable housing developers, this increased credibility is crucial in attracting buyers and securing financing. Financial institutions are more willing to lend funds to Maha RERA-registered projects, ensuring a steady flow of capital for construction. This has led to an overall improvement in the quality and availability of affordable housing.
Challenges Ahead for Maha RERA
Since its inception in 2017, Maha RERA’s continuous and tireless efforts have borne fruit but the road ahead is not an easy one. By introducing transparency, accountability, and financial discipline Maha RERA has created a trustworthy and credible market in an otherwise chaotic real estate market in India. RERA has a long way to go in making its government initiatives and government policies accessible to people from middle and lower-income groups.
Maha RERA’s seven-year presence in the real estate segment in India has considerably impacted the real estate market due to many of its initiatives. Transparency, accountability, and financial discipline have created a more trustworthy and reliable market. While challenges remain, the regulatory measures provided by Maha RERA are a significant step towards making affordable housing to the lower and middle-income groups more accessible and reliable to the people of Maharashtra. Visit Our site for more information
This regulatory body has also impacted the affordable housing segment thereby impacting project approvals which increased the buyer’s confidence.