Real estate regulation Act to ‘streamline’ market

Sachin Sandhir
Global Managing Director, RICS  talks to Sanjeev Sharma 

The Real Estate (Regulation & Development) Act, 2016 is probably a major key step in trying to bring order to an otherwise disorganized and fragmented markets by way of accountability of all stakeholders involved, says Sachin Sandhir, Global Managing Director, Emerging Business – RICS, a global professional body that accredits professionals within the land, property and construction sectors worldwide.

Q: While the Smart Cities Mission of the government looks good on paper, do you think there could be a mismatch in expectations and results?

A: Success of the Smart Cities Mission depends on a number of things, but key among them is the resolve of the cities themselves to realise their dream. Unlike older schemes, which used to literally tell cities what to do and what not to do, the Smart Cities Mission provides considerable flexibility to define what ‘smart’ would mean; and how cities can leverage funds from other schemes in order to maximise development impact and unlock the economic, social and environmental potential of cities.

Q: Which are some of the key areas in real estate that would see major changes?

A: The sector has already recently started witnessing numerous changes. The Real Estate (Regulation & Development) Act, 2016 is probably the major key step in trying to bring order to an otherwise disorganised, fragmented and even “shady” markets, by way of accountability of all stakeholders involved. In our view, this is the key development that influences how the other initiatives taken in the real estate eventually turn out to be. Real Estate Investments Trusts – a long-standing demand of the industry to bring forth structured and organised investment into the Commercial Real Estate (CRE) sector has been fulfilled.

Once REITs start getting formed and listed, we expect a number of slow-moving CRE projects – especially by developers requiring more liquidity — to start moving and re-kindle investor avenues and confidence in the sector.

Q: Developers and investors are often seen as working at cross purposes with the user/ buyers. Do you think there is a scope for common ground through legislation such as RERA?

A: The Real Estate (Regulation and Development) Act, 2016 was enacted after considerable deliberatons between the government, developers and stakeholders, and addresses a long-standing industry demand of bringing about a uniform regulatory environment in order to protect consumer interests, help speedy adjudication of disputes and ensure orderly growth of the real estate sector. Mandatory registration for projects, only after having received all approvals from development/municipal authorities boosts investor confidence and also protects buyer interests. So yes, there is considerable common ground that has been covered by the law.