How RERA has changed the way real estate developers operate in India

The real estate developer community in India is experiencing drastic change in their professional environment. The bye-gone era of absolute say over the projects and the helpless situation of buyer is not going to return. Gone are the days when builders could get away with their unchallenged authority and control over projects; where they could give the buyers a real tough time in terms of handing over flat possessions, illegal demand of money for permanent car parking space in the premise or for other amenities. They can’t do all this now due to strict regulations and stringent punishment clause under RERA (Real Estate Regulatory Authority). Real estate developers in India are adapting to the new market and changed buyer expectations. Although difficult, but they are forced to accept that buyer is the king and buyer will call the shots.

Not just the reduction in powers but today developers are required to produce details of the funds that they collect for each project. They are required to allocate seventy percent of the funds in that project only. Earlier they used to divert the funds collected for one project into another project or for the purchase of land for new project. This lead to the delay of the existing ongoing projects. Now they are required to correct such faulty ways of functioning and bring about financial discipline. Top real estate developer in India were able to transition smoothly into the new world order because they were functioning more or less very professionally and had corporate work culture. They were already practicing financial discipline in terms of proper fund allocation for all ongoing projects and the timely handover of possession to the clients. All they did was probably fine-tune their working style to the new regulations, which was not very difficult for them.

Today developers are required to provide the buyers with every facility and amenity that they promised to the buyer or which they showcase in their brochure. There is no other way out. Such transformations are bringing about changes not just in the builder community but also in the attitudes on both sides.