Understanding RERA Real Estate: How it Impacts the Real Estate Industry in Chennai
Significant economic growth in the automobile and tech industry in Chennai has led to a huge influx of job seekers in the city. This in turn has led to an eGramandless demand for residential plots for sale in Chennai. Over the years the city has seen various real estate projects emerging throughout the city.
While all of this is quite encouraging, it is surrounded by various real estate frauds, delays, and violations. And because these dangers fail to convince you in making an investment in residential apartments, or plots in Chennai. So, real estate authorities in Chennai have taken significant measures to prevent any type of fraudulent practices in real estate projects.
1. What is RERA Real Estate in Real Estate industry?
Before we get into the impacts of RERA in the real estate industry, let’s understand what RERA real estate is and its components.
RERA, its full form is Real Estate Regulatory Authority, and as the name suggests it stands for bringing transparency within the real estate industry. It was introduced in May 2016, under the real estate regulatory act, solely for the purpose of rooting out discrepancies, violations, and other fraudulent practices within the sector. These regulations will further help smoothen the process of RERA registration and certification for real estate developers.
2. How RERA Real Estate Will Impact Homebuyers?
Ever since its inception, the real estate regulatory act has positively impacted maintaining transparency in the buying process of apartments and plots in Chennai. RERA real estate benefits homebuyers in several ways. Let’s look at some of the major ones.
- Ever since RERA real estate’s implementation, every real estate developer is obligated to disclose all the information about their ongoing real estate projects on RERA’s official website. So, if a buyer intends to invest in apartments or plots in Chennai, he will log in to RERA’s website and would be able to find out about the authenticity of the project.
- Additionally, real estate developers have to update this information on a regular basis. This helps buyers know about the project’s timelines and date of completion.
- 70% of the total amount received from the buyers for any particular project has to keep in a separate bank account. And that amount could only be used for the construction purposes of a certain project. This rules out the possibility of fraud
- Moreover, the real estate regulatory act prohibits any developer to take more than 10% of the total value of the property from homebuyers.
- It has become mandatory for each residential project in Chennai to get registered under RERA real estate. These properties will be titled as ‘RERA registered properties” and “RERA approved properties.”
3. How RERA Real Estate will Impact Real Estate agents?
With the implementation of rules under real estate regulatory act, developers have to be more transparent. Here are some the major impacts of RERA real estate.
- All of the proposed residential projects exceeding 500 sq. mt. or more than 8 apartments must be registered under Chennai RERA that comes under Tamilnadu RERA. They’re to be registered as “RERA approved properties.”
- They’re obligated to provide all the security requisites such as 24 hour CCTV surveillance, security guards, environmental friendly methods, etc.
- They also need to enter into one model of sale agreement with all the homeowners of the same project.
RERA real estate’s smooth registration process, reasonable penalties, along with proper implementation and execution of all its regulations by the Chennai RERA has helped in keeping the real estate industry free of any detrimental fraud, and delinquency.
Furthermore, these positive impacts of RERA in real estate industry have made investors confident about their investments in the form of various residential plots for sale in Chennai. And in the near future the investment in various properties like flats, apartments, plots and lands in Chennai will go up.
G Sqaure offers some of the safest investment options for residential plots in Chennai.
Our projects include RERA approved properties in Neelankarai, Injambakkam, Karapakkam, Madhavaram, and many more. All of these residential plots for sale in Chennai are situated in a well-established neighbourhood with all the prominent facilities surrounding these plots. And soon these places are going to get sold out because of their ultimate location and better pricing. For more details, you can visit G Square housing.