4 Reasons why real estate prices will rise post RERA
Real estate regulation act, RERA, was implemented from 1st of May 2017. RERA was implemented to give safety to the buyers by increasing transparency and applying a uniform ‘code of conduct’ for developers across various states. It helps to decrease volatility in the market by increasing trust between the two important stake holders in this industry – Buyers and Builders. Post RERA, you can expect increase in the pricing of residential real estate because of the following reasons.
- Decreasing supply
Builders might take up some time to comply with the real estate regulation act, some might even stop selling their units.
2. Ever growing demand
The demand for real estate is always there and is growing steadily. People want home and they want the best deal. RERA has made some of the builders put their projects on halt, giving the available projects the pricing advantage.
3. Cost for developers
From pre-launch phase to official launch phase, there was a big price escalation. According to RERA, now there can’t be pre-launch, there has to be just one official launch. So the price escalation will now shift to the buyers and it’ll reflect on the final pricing.
4. Land price
Purchasing a land was mainly done to hide the surplus cash or the black money, post demonetisation which got decreased. According to RERA, the land acquisition price has to be paide from the legal funds.
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