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RERA to attract more FDI in the Indian real estate sector, says Niketan Gawade
Pune-based Niketan Enterprises is one of the few notable realty startups exceptions, which trumped the real estate slowdown in the National and Region market. The company's CEO Niketan Gawade talks to Startup India Forum (SIF) about RERA
By: Niketan Enterprises
Mr. Gawade: The current real estate market is in a flux, however, it is not an alarming situation considering the regulatory changes brought in by the government in the form of Real Estate (Regulation and Development)
SIF: How will the industry fill the trust deficit? Are latest regulations expected to fill the gap?
Mr. Gawade: Real estate is one of the rapidly growing sectors in India, but the 'industry' status still eludes it. The industry has traditionally not enjoyed a favourable image among the consumers. While being the second largest employer in the country, it is straddled with old reforms, opaque practices and cluttered regulatory framework. The first step to instill trust in the sector has to be taken by the developers. As a priority, developers need to find the best possible solution to complete pending projects and hand over possession at the earliest. By complying with RERA the developers can overhaul the image of real estate sector by addressing key issues such as project delays, price, quality of construction title and other changes.
SIF: After being in dumps for years, do you feel RERA will be a 'game changer' to bring a decisive change?
Mr. Gawade: With RERA becoming a reality now, transparency in the real estate sector for consumers and investors will be one of the major benefits of this development. For many years, the real estate sector has been largely unregulated in the country, which has led to a huge consumer trust deficit in the industry. But as RERA comes into full force, we can expect some major changes in the industry. Standardization and consumer protection norms will become of paramount importance and help bring fair practices in the industry. The new bill seeks to balance out the interest of all stakeholders and delegates further responsibility on developers to meet their commitments on upcoming projects completion to avoid stringent penalties.
From a developer standpoint, implementation of RERA will help modernize the sector and ensure better project planning, implementation and management, thereby making the entire exercise more efficient.
Furthermore, it will attract greater Foreign Domestic Investments into the sector encouraging developers to adopt best practice and quality standards to project Indian real estate sector in a new light.
For more information about Niketan Enterprises you can visit their website: http://www.niketanenterprises.com