Developers have been cautious while launching new projects both in the run-up and after the announcement of the Real Estate Regulatory Authority (RERA) rules.
A recent survey released by a research group last week has revealed fewer project launches across the state in the first quarter of this financial year as against the corresponding period in the last fiscal.
The report, released by Colliers International India, described the first quarter as “RERA impacted” with 4,900 launches across Maharashtra in the first quarter of the 2017-18 fiscal as against 6,500 launches during the same period in the last fiscal — a sharp 24% drop.
Sources associated with the sector said the developers are adjusting to an “unfamiliar terrain” registering with the authority. Based on a market assessment, the report stated that the decline may continue for a short term as the developers get adjusted to the new rules.
CM Devendra Fadnavis had during a meeting in Mumbai reiterated that there will be no extension for RERA registration after July 31 — the window of 90 days for both ongoing and new projects. The only solace for the builders being the CM’s assurance that the government will be lenient for two years.
Colliers executive director Ravi Ahuja said the approved layout plans (as per applicable Floor Space Index norms) and the rules have been different from the developers’ sale plan and chargeable areas of projects. “This poses challenges as developers have to upload details on the RERA website to enable sale of all sanctioned and approved plans. There is hesitation related to projects under construction sold prior to enactment of RERA,” he said.
A problem highlighted by RERA chairman Gautam Chatterjee during his interactions with consumers and buyers has been “initial hiccups as everything will be in public domain”.
Credai Maharashtra president, Shantilal Kataria, said: “We have held several workshops to address all the issues related to the housing sector, affordable housing and implementation of RERA rules.”
Credai (Pune) president Shrikant Paranjape said new launches will not take place till July.