The Indian real estate sector is the 2nd largest employer in India after agriculture. It is expected to grow by 30% over the next decade and will contribute around 11.2% to India’s GDP by 2020.
This rapid growth is complemented by a rise in demand for accommodations in urban and suburban areas along with easy availability of home loans.
Real Estate (Regulation and Development) Act, 2016
The real estate sector was in need of a comprehensive regulatory body to oversee the transactions happening and ensure transparency to homeowners. Thus, the Real Estate (Regulation and Development) Act, 2016 came into effect from May 2017. The main objective of the act was to regulate the real estate industry in every corner of the country.
The implementation of RERA throughout the states started rapidly after the act came into effect. Maharashtra was one of the first states to implement the RERA act and establish their own regulatory authority named MahaRERA.
What is it?
RERA Maharashtra was established by the Maharashtra Real Estate Regulatory Authority on March 2017 to regulate and promote its real estate sector.
According to the RERA in Maharashtra, it is compulsory for all on-going residential and commercial projects to be associated with this authority. Promoters and developers are not allowed to sell, book or advertise their property unless they are registered and compliant with the regulatory authority.
Also, any individual can lodge a complaint with the authority for any violation of regulations for any registered or non-registered project.
Importance of the MahaRERA
Establishment of this regulatory authority was to ensure transparency in transactions and accountability towards property buyers and to protect their interests. It also aimed to reduce delay in project hand-over and to boost the confidence of investors in the real estate industry.
Establishment of MahaRERA in Maharashtra has provided a lot of benefits for prospective buyers.
For example, any individual can view any on-going project online to check its development status and expected date of completion. Individuals can also see details of the projects registered such as permissions granted along with the complaints that are registered and solved in the website. This system is also efficient for fast settlement of complaints.
Developers cannot accept more than 10% of the cost in advance from a buyer unless an agreement for sale is registered.
Promoters are required to pay interest on the forefront for every month of delay. In addition, Maharashtra regulatory authority uploads all registered projects on an online map so that all prospective buyers can view the projects under construction and check all the available facilities before visiting a site.
Other Initiatives
There are a few other initiatives by the Government of India for prospective buyers to avail home loans with affordable interest rates. The PMAY CLSS being one of them.
A brief idea about PMAY CLSS
The Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS) is an initiative by the Government of India to provide prospective buyers with home loans at affordable interest rates. First-time borrowers can avail subsidies on interest rates under the Credit-Linked Subsidy Scheme of this initiative.
Subsidies that a prospective buyer can avail under this scheme are-
- 6.5% on home loan interest rates for Economically Weaker Section or Low Income Group
- 4% on home loan interest rates for Middle Income Group I.
- 3% on home loan interest rates for Middle Income Group II.
Several financial institutions offer home loans under the PMAY scheme. Bajaj Finserv is one such institution that provides Home Loans at competitive interest rates, flexible tenors, and quick approval.
Along with the PMAY, the RERA act (real estate regulatory authority act) in Maharashtra has created a transparent set up for real estate transactions. Prospective buyers can now assess all the details of a property they are looking to buy through their website and decide accordingly.
