The real estate stalemate that has been going on for long will perhaps clear off quickly much to the relief of the industry people as the Union Cabinet has given its green signal to the Real Estate (Regulation and Development) Bill, 2015.

A key stipulation of the Bill, to ensure timely execution of projects, will go a long way in safeguarding the interest of consumers, and in the long run, keep the real estate markets brimming with active demand.

Of late, the market has been dull, lacking velocity in sales and an umpteen number of projects failing to meet deadlines. The developers have been crying about procedural delays as the major factor affecting the project execution timings.

To put it bluntly, the real estate market has been stagnant. The National Capital Region (NCR) alone has a number of stalled projects because of slow demand and certain economic factors. A Knight Frank report states there are more than 6 lakh unsold units in the country, and at the current absorption rate, it will take more than 2 years to clear even if no projects are launched.

There are reports, however, of some progress. For example, residential sales in Mumbai have climbed up. Ramesh Nair, COO & International Director, JLL India says, “The aggregate of residential unit sale in Mumbai in previous four quarters has jumped up 28% when compared to the corresponding period one year ago.”

In other regions however, sales have been sluggish across the country. According to Surajit Chanda, regional head, Sobha Ltd. (Pune), sales velocity has slowed down in the city. “The market is going through stress. And buyers are taking more time to buy. Primary demand is between 30-70 lakh segment all across the country. In the premium segment, say 1 cr and above, there is certain movement, but not as is expected,” lamented Chanda.

Pinning down one of the causes of the real estate distress, Chanda remarked, “Developers have over leveraged themselves. They picked up more than they can chew.”

If one takes a look at the massive number of delayed projects, it gives a clear picture of why buyers’ confidence is eroded. Not only is their hard earned money been stuck and their economics gone topsy-turvy, but the developer’s promise of timely delivery, a thing which they should swear by, has lost credibility

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[So], the message has been very clear. An improved regulatory environment and shorter turnaround time for projects will greatly help in building consumer confidence. And the government is working on that.

With New Year dawning soon and new projects in pipeline, how do the developers plan to push out the older stock and does that mean prices will come down? It will be interesting to watch how the real estate market unfolds. As for now, it’s a buyers’ market, say the experts; hopefully the buyers will rouse now into action, with the Regulatory Bill 2015 as their guardian.