The Real Estate (Regulation and Development) Act, 2016 RERA is aimed at revamping the business models of developers.
Earlier the trend was to launch projects without any thought and there was no guarantee of completion of the projects. Now, through the RERA act, a deadline has been given for the projects to be completed.
This is one of the major initiatives of the government to improve the business model of developers who will now be required to bring more transparency as well as accountability in their system that would also enhance consumer confidence.
Also, the Goods and service tax (GST) as well as the Benami Transactions (Prohibition) Amendment Act 2016, will have a major impact on, how developers run their business.
Also the Real Estate investment Trusts (REITs) will have an important and long-term impact on developers, with the choice of either ‘corporatizing’ or risking taking over, by their larger counterparts.