Real estate regulation Act recently is the center of Patna property market discussions. The local dailies are full of action being initiated by RERA BIHAR against the rule-floating builders and developers in Bihar. The last date of registration of projects with RERA BIHAR has elapsed, though the grace period is still on. No builder or developer can sell or even advertise their non registered projects. It means all projects need to be recognized by RERA BIHAR.
Simple registration of projects both ongoing and new is the GEHRA for builders and developers in Patna. RERA treats each project separately, leading to different accounts for different projects. The financial discipline will make many developers in Bihar redundant. The builders and developers in Bihar cannot direct and redirect funds from one project to another with RERA in place. Secondly, without completion of a project, the ease with which they launched new projects, from partially drawing from the earlier projects will also come to an end.
RIP the pre launch offers. The practice of putting the BOARD on the land by just giving the token amount to the landlord and then arranging for funds through prelaunch offers in the market is dead with RERA in force. The BOARD can be placed only once the project is RERA approved. Developers and builders need deeper pockets to put BOARDS announcing that their project will commence on a particular site.
RERA means financial and operational prudence if implemented well for developers and builders in Bihar. The execution will be the key. With the awareness among buyers increasing and media and social media highlighting real estate issues it would not be easy to circumvent the rules. RERA announces the arrival of BUYERS market; the seller’s market is history. The sooner the builders in Bihar come to grip with provisions of RERA the better……
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