Panaji: The Real Estate Regulation Act (RERA) norms and lengthy list of compliances has sparked concern with the housing industry and several builders in the state are considering hanging up their boots. The revelation is made by one who has his ear plugged to the ground, Confederation of Real Estate Developers' Associations of India (Credai)-Goa president, Jagannath Desh Prabhudessai who rues that the government's role in supporting the real estate industry has been missed out in the implementation of RERA.
Given that these are early days and RERA has yet to be implemented in Goa, the apprehensions are expected to subside. In the short term, builders have decided to stay away from launching new projects in a bid to ensure that they do not burn their fingers during the RERA implementation phase.
"Good builders are also thinking of leaving the business because they are not acclimatized with this atmosphere of RERA. They have not absorbed it yet," Prabhudessai said.
CREDAI has been holding several sessions to assist its members with RERA compliance, but that has not stopped real estate developers from being overcautious in their approach. With a steep learning curve ahead, may builders have decided to pay extra attention to existing residential and commercial projects so as to not fall afoul with RERA.
"New projects are little bit delayed, but ongoing projects are going on. For bigger projects or new projects people are trying to delay launches. If a builder wants to study, a builder will not launch any project. So down the line, maybe after six months, you will find new projects launching," Prabhudessai said.
According to CREDAI, builders are yet to come to terms with RERA norms that require 70% of the funds paid by customers for a single project in a separate account and for the housing society to be formed once 51% of the dwelling units in a project are sold.
The decision to err on the side of caution is for good reason as the government is equally responsible for ensuring that real estate projects get delivered on time.
"We have been asking government to have single window clearances or approvals in proper time. The agreement draft that we sign with the customer mentions the timeframe for delivery. At that time, we should have the occupancy certificate, which has to come in time from the government's side. As we are complying with RERA, government authorities should also do so," he added.
For Goa's real estate industry, RERA compliance is just another speed bump for an industry that has been struggling to pick up ever since the ban on mining led to a slump in the overall housing sector.