Tag Archives: Real Estate Regulation Bill

Real Estate Sector Hopes To Thrive In 2013

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The year 2013 is expected to be a boom year for economy as a whole. This is more expected in the real estate sector. Real estate sector expects to thrive in 2013.
Real Estate Sector Hopes To Thrive In 2013

Real Estate Sector: ready to thrive in 2013

Real estate sector went through a tough time in the year 2012. The year was noted for its slow pace and declined market. Lower sales and higher construction costs affected the real estate developers adversely. In short the year 2012 was a very difficult one for the real estate developers of India. They faced a tough economic condition as sales stooped down.

Lalit Kumar Jain, National head of CREDAI (Confederation of Real Estate Developers’ Associations of India) expressed his hopes of revival in the year 2013. He said that the year 2012 was a year of loss especially because no corrective step was taken. He moaned that the 2012 remain as a lost opportunity.

Real estate consultancy firm Jones Lang LaSalle India’s Chairman & Country Head, Anuj Puri appeared more confident over the real estate renovation. According to him real estate boom will be more in the final-half of 2013.

The RBI (Reserve Bank of India) has, in recent times, allowed reputable real estate developers to raise funds up to $1 billion. The RBI also has permitted established housing finance companies to raise an equivalent fund. With this new rule the real estate builders and finance companies can raise funds through external commercial borrowings. Continue reading →

Real Estate Bill Have to Wait More

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The much-awaited regulatory Bill for the real estate sector is still a long way off. The draft Real Estate Regulation Bill will not be tabled during the current session of Parliament, a senior official in the Ministry of Housing and Urban Poverty Alleviation has confirmed.

The imprisonment, according to the final draft, applies only in the case of non-registration with the real estate regulation authority. Registration is mandatory for projects of a certain area and type. The maximum term of imprisonment is up to three years, and penalty may be extended up to 10 per cent of the project cost. In the earlier draft of the Bill, imprisonment was recommended in case of wilful failure to comply with orders of Appellate Tribunal too. The ministry has also reduced the area size for compulsory registration from 4,000 square feet in the earlier draft to 1,000 square feet now. This would mean registration would be mandatory for the smaller players too.

The Bill has been in the making for several years now, and was slated to be introduced during the Budget session. The housing ministry is now targeting the monsoon session of Parliament. The official said the final draft was ready. The draft bill has gone through some changes related to clauses on imprisonment and compulsory registration.

National Real Estate Development Council (Naredco) hailed this as a good move. “It would also check fly-by-night operators in real estate, which are majorly into smaller projects,” said R. R Singh, Naredco director-general. “However, the load on the authority will increase, as it would get flooded with projects for registration as smaller projects are more in number.” Confederation of Real Estate Developers Association of India (Credai), however, wants no limit on the registration. “No developer should be left out of the ambit of Real Estate Regulation Authority,” according to Credai chairman Lalit Jain.

The objective of the proposed legislation is to establish an authority to regulate, control and promote planned and healthy development and construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties, besides to host and maintain a website containing all project details.