In India,
the demand and supply of realty sector depends upon the economic conditions. In
this scenario, the role of regulatory norms becomes more important than ever
before. In order to make investments appealing for the Indian masses, the
government has contributed its bit for the country. By easing out rules and regulations
for building commercial projects, townships, built-up infrastructure and other
such property segments, government has made the entire process hassle-free.
Knowing that the real estate industry is one of the biggest segments to offer
employments to people, it is rather essential to bring a change with the course
of time.
Following
are a few examples of how the process of buying property in India is
evolving rapidly to tackle the regulatory issues -
Foreign Direct Investment (FDI)
Earlier last
year, the Union Cabinet has passed its recommendation to ease out FDI norms of
the country. From a decrease to the
minimum built-up area to a change in minimum capitalization, Indian government
is leaving no stone unturned to ensure better availability of resources for
developers and buyers. Thus, through such measures taken by the authority of
India, real estate is definitely showing some great signs of revival.
Regulation and Development Bills
Apart from
relaxing the FDI, government is also making sure that there are enough laws to
mandate some privileges for buyers. The Real
Estate Regulation and Development Bill was passed in the Rajya Sabha in
2013 and has been in action since May 2016. After the much-hyped regulatory
bill was passed earlier this year, buyers have been able to invest their money
with improved transparency in transactions and timely execution of a property.
Therefore, after the launch of this Real
Estate Regulatory Authority, almost all of the real estate processes are
now being governed under one roof.
Apart from
the aforementioned real
estate regulations in India, advancement in the Real Estate Investment Trusts (REITs) has also become somewhat
vital for the entire development process. These trusts functioning on the model
of attracting small term investments are also expected to drive regular foreign
investments. The role of REITs remains crucial as they are the ones investing
in the completed real estate projects that are capable of generating revenues.
By creating a visible process of raising finance in the realty sector, REITs
are gradually becoming an integral part of the governing system of India.
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