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Union Home Minister Amit Shah, on December 19, said that the Real Estate (Regulation and Development) Act (RERA) has helped streamline the real estate sector, while also safeguarding the interests of homebuyers.
Addressing CREDAI’s National Conclave in the Capital, Shah said RERA has brought structural reforms to the real estate sector by enhancing transparency in property transactions, improving construction quality and protecting buyers’ interests.
He noted that while there were several apprehensions when the law was introduced, it has since helped bring greater discipline to the sector.
“When we look back, nobody can deny that the RERA has played an important part in the smooth functioning of developers,” he said.
The Real Estate (Regulation and Development) Act (RERA) was cleared in 2016, and the law came into full force in May 2017.
He said that RERA has done commendable work in India towards protecting the interests of homebuyers, ensuring fair transactions, and guaranteeing quality construction, and that it has been adopted by 35 states and Union Territories.
He said that appellate authorities have been constituted in 29 states, and 29 RERA authorities have also launched their websites. As many as 1.55 lakh real estate projects have been registered under RERA, and nearly 1.10 lakh developers have also been registered under its framework.
The union minister said that “When we take regulations as restrictions, then there is a problem. Regulations always help in increasing business opportunities, enhancing credibility and guaranteeing better facilities to customers,” adding one should therefore, always welcome regulations.
In a lighter vein, he said this is not an indication that the government is introducing any new regulations, but added that even if it were, the industry should accept it in the right spirit.
“Our government always believes in dialogue. The objective of bringing new regulations is always to make things simpler for both businesses and customers,” Shah said.
GST rate cuts to help reduce costs
Shah noted that the government has introduced changes in many laws, including the Goods and Services Tax. The reduction in GST rates on various building materials would help reduce the cost, and the “reduction in cost will help builders in providing more facilities to customers.”
He said that GST on affordable housing has been reduced from 8 per cent to 1 per cent, on housing projects from 12 per cent to 5 per cent, on cement from 28 percent to 18 per cent, and on marble, granite, sand, lime, and bricks from 12 per cent to 5 per cent. GST on bamboo flooring has also been reduced from 12 per cent to 5 per cent.
“Overall, there is a possibility of a 5-7 per cent reduction in cost because of the latest GST reforms,” he said.
Shah stated that the government recognises the importance of this sector and that, through CREDAI, Prime Minister Modi’s promise to provide every person with a home can be fulfilled.
He urged large developers to consider whether, while planning major projects, they could also simultaneously develop low-cost housing.
Shah urges real estate developers to incorporate more green areas in projects
Shah also urged developers to incorporate more green areas in their projects, asserting the adoption of green building norms should be the “new normal” in the housing sector.
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Real estate developers should work towards achieving net zero in the sector, he said.
Green building norms, energy-efficient design, water recycling, provision of rainwater harvesting system and scientific waste management should be the “new normal” in the housing sector, he told real estate developers.
Developers should focus on these aspects while designing their projects apart from the basic structure of the buildings, he said, adding that the cost should not increase much by adding green elements.
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Shah noted that CREDAI has planted 20 lakh saplings and worked to rejuvenate 9,000 acres of barren land across 25 villages. If every developer in the country makes an effort to plant 10 trees during the construction of each building they create, it would be a very commendable initiative, he said.
Shah also said that in the coming days, the land market must be made more transparent, and cities will have to move away from land banking and speculative holding.
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