There has always been speculation in the Real Estate market regarding the prospects of Ongoing projects or Under Construction projects. To invest in ongoing projects that were in the construction phase used to be a big worry to prospective homebuyers and investors.

Well with recent developments like the new GST reforms being announced and the RERA act being enforced, these concerns are finally being addressed. The benefits of RERA Act has being enclosed under the Act that soother needs of every home buyer.

Firstly, the GST rates on Under Construction projects have been slashed to 5% from 12%, bringing much-needed relief to both prospective homebuyers, and real estate developers.

Next, the RERA act of 2016 that was enforced in 2017, has ushered in an era of accountability and transparency into the Housing and Real Estate market.

Looking into the practicality and effects of RERA on Ongoing Projects in this scenario is the objective of this blog.

A brief overview of the key RERA regulations:

• On Defaulting, the rate of interest to be paid is the same for both parties

• Reduces Risk of Builder Insolvency/ Bankruptcy

• Rights of Buyer in case of False promises

• Advance Payment

• Rights of Buyer in case of Delay in possession

• Rights of Buyer in case of Defect in Title

• Right to Information

• Grievance Redressal

Previously when a person would want to invest in a house or any under construction project, they would be extremely sceptical of the pros and cons of investing in an ongoing project.

The chances of delay in delivery and defaulting on commitment were a big worry. The major benefits to be considered about an ongoing project are the surety and certainty of completion of the project.

Ongoing projects are known to be cheaper to invest in when compared to finished ones, depending on the earliness of the investment. From a homebuyer's perspective, it is the more sensible thing to do as they are cheaper. From an investor’s perspective, the returns on the property will be higher due to the prices being lower.

Experts are optimistic about the positive outcome of the implementation of RERA. The impact of RERA on ongoing projects is remarkable with recent instances where the Maharashtra RERA gave some landmark judgments, few of which came only within 30 days of filing a case were a setback to deceitful property developers. These developments have rejuvenated the buyer sentiment in the market positively. The benefits of RERA Act has being done good to the home buyers on terms of ongoing projects.

RERA has brought in new energy into the market transforming the buyer-developer relation into a more transparent and strong relationship.

It has paved the way for strong developers to take over pending projects from weaker developers and ensure the completion and success of such projects relieving the plight of concerned investors and homebuyers.

The industry is seeming to function in an organized manner now with efficiency being a top priority. Despite being harsh on bad and weak builders the benefits of RERA act are that it has managed to clean up the market, paving the way for small and good builders to take up new opportunities. Interestingly, financial institutions have been extremely welcoming of all these developments, with most of them offering credit to upcoming small and good developers.

Also, the compulsion of having one website that has all the info on a specific ongoing project has made it easier for buyers to attain correct information and also have evidence in case of things going south. This makes the investment of the buyer secure, benefiting the home buyers in all causes.

Not only this, but buyers can also see the number of projects the developer is currently involved in, which can help them ascertain the buyer's capability in completing a project. There have been many instances where buyers have developed a large number of projects and not been able to finish some of them by the committed deadline, which had affected a lot of buyers in the Real estate market.

Another major benefits for the home buyers in terms of ongoing projects is the strict penalties that have been fixed for developers whose projects don’t finish by the stipulated date. In an attempt to ignite a sense of confidence and trust in the buyers, the RERA body is going hard on the developers when it comes to possession dates. This is the reason that a lot of developers have extended possession dates in their RERA files and also informed the customers on the same. With new regulations in place, the need for renewed municipal permissions arises. What will happen now is the scope for corruption will come down and approval systems will become clearer. In cases where buyers accept verbal assurances from developers regarding a delay in possession, this shall harm buyers interests in worse times. Buyers must remember that any sort of agreements and commitments between the sellers and buyers must be on paper. Just because the project is RERA approved it doesn’t mean that the developers comply with all rules.

Homes247.in Experts View:

We at Homes247.in have been sincerely working on our customer-driven initiatives to inform our customers of all small and major developments in the real estate market and at the same time ensure that all our customers make well-informed decisions.

The decision of investing in Real Estate is an important decision in one's life.

We practice honest business and believe that for a better society or market to prevail, it has to begin from one entity.

Hence, with great determination and responsibility, we run our business in a customer-driven manner giving priority to customers over our commercial interests or that of developers.

The RERA act is one of a kind movement that has indeed cleaned the Real Estate market of its weak and bad builders who put the money of a lot of people at stake.

Investing in Under construction or Ongoing projects has been cheap always but never has it been this transparent and secure.

The RERA Act changes this ballgame completely. Therefore, we encourage all our buyers and readers of this blog to believe in the new era that Indian Real estate is stepping into and reap the benefits of healthy investments. and do invest in ongoing project without any further consideration, as RERA Act got your back.