Demonetisation and Real Estate (Regulation and Development) Act, 2016 have shaped the contours of the residential market over the past few months. While the sale volumes remain low and prices in the secondary market have shed much of their flab, the developers seem to be in an overdrive to complete projects to avoid penalties specified under RERA.
The countdown for the implementation of the realty regulation Act has begun and with the deadline of May 1 approaching fast, developers have accelerated the pace of work in order to get completion certificates for their under-construction projects before the D day. This focus is clearly evident in the NCR currently. NCR micromarkets like Faridabad, Gurugram, Noida, Greater Noida and Yamuna Expressway constitute almost 25 per cent of the total delayed projects in seven top cities in the country. The possessions of a number of projects launched as far back as 2011 are yet to be offered. According to figures provided by real estate consultancy PropEquity as many as 7,391 residential projects, out of 9,591 projects launched till 2011 had not been delivered till August 2016. But the builders are now in an over drive to complete so as to avoid getting penalised under the new Act.
According to Suresh Garg, CMD Nirala World & Secretary CREDAI Western UP, “ The projects receiving completion certificate before May 2017 will not be under the ambit of RERA. Developers whose project are under-construction have sped up their work and are trying hard to complete construction and obtain the completion certificates”.
Emaar India, Exotica group, Nirala World are some of the developers who have received Occupation certificate, and Completion certificate for their projects in the past couple of months. While Exotica Dreamville at Greater Noida West got CC recently, and Exotica Fresco project at Noida Expressway project in last year. Our priority is to handover the project first before launching new one. OC was received for second phase of Emaar india’s premium luxury project The Palm Drive located on Golf Course Extension Road in Sector 66, Gurugram last week. This is the third project delivery in as many months by Emaar India, which is presently focused on rapid execution and seamless delivery of all its ongoing projects.
The company has received Occupation Certificate for 378 units in Premier Terraces, Palm Studios, and Palm Terraces, which are part of The Palm Drive project. “Earlier, the company had delivered more than 500 units of Sky Terraces, Premier Terraces and Garden Terraces, along with the luxurious Clubhouse having premium recreational facilities, and 262 EWS units, in The Palm Drive project. Around 300 families have already moved in the project, which is spread across 37 acres and comprising of 1460 units”, said Sanjay Malhotra, Chief Executive Officer, Emaar India.
Many projects were launched during 2010- 2013. Specially in sector 74-78 of Noida, Sector 100-143, Expressway Noida and Greater Noida West (Noida Extn.)
The real estate activity was at its peak between 2010 and 2011 in Noida and Noida Extn. Builders were launching projects/ new towers on almost a weekly basis.
But only a few of these have been delivered till now. “Out of the 3.50 lakh (approx.) homes at Noida, Noida Expressway and Greater Noida (west) only 70,000-80,000 units have been delivered. This means that only one fifth of the total units launched have been delivered and if the developers do not take immediate steps they will have to pay heavily for violating RERA norms,” says Pawan Jasuja, Director, Find My Property.
“In the entire Noida and Gr Noida west approximately 100 developers are present having 200 small, medium and big projects. However I feel that only 30 per cent of the total project in the region will be able to get the completion certificate before May 1, 2017 i.e; the RERA implementation date”, adds Garg.
The commitment to adhere to timelines will have to be more as it will translate into fines or compensation to buyers. According to Naveen Mypala, Executive Director of Hyderabad-based Aliens Group, “For ongoing project developers will have to come to a mutual agreement with buyers where compensation to previous delays can be agreed upon and new timeline can be set for project delivery.”
“Though developers are now making efforts to gel with RERA. In this process some projects are expected to be delivered by end of March this year but larger figure will come out till year end”, adds Jasuja.
No room for laxity
The government, too, has made it clear it to the states that any laxity regarding framing rules for state regulatory authorities will not be accepted lamely. Earlier this week the ministry issued a statement warning chief ministers to ensure that the Act is implemented in letter and spirit. The central government has asked all state governments to notify the Act by May 1, 2017.
The central government has warned Chief Ministers of all states that if they dilute the sections in Real Estate (Regulation and Development) Act, 2016, then the Act will serve no purpose. RERA is meant to streamline the fallacies in the real estate industry; however, there have been allegations that several state governments, including Mahahrashtra, have diluted stringent sections against developers, thus defeating the main aim of the Act.
Coming in the backdrop of complaints from different states, including Maharashtra, that the stringent sections of the Act against the developers had been diluted the statement mentioned, “The ministry has received some complaints of violations of some of the provisions of the Act by some of these states resulting in dilution of the spirit of the Act”.
Sector 74-78 Noida has AIMS Golf Avenue, JM Orchid, Amrapali Silicon Valley, Amrapali Princely Estate, Supertech Capetown, Sethi Max Royal, Ajnara Grand Heritage, Elite Homz, Prateek Wisteria, Adiya Urban Casa, Mahagun Moderne, The HYde park, Antriksh Golf View, Assotech Windsor Court.
Similarly sector 100-107, 137-143 at Expressway Noida has 3C Lotus Boulevard, 3c Lotus 300, Amrapali Heart beat, Paras Tierea, Paramount Emotions, Exotica Fresco, Ajnara Daffodil, Sunworld Vanalika, Prateek Edifice, Purvanchal royal Park, Logix Blossom County, Logix Zest, Sikka Karnam, Logix Blossom green, Victory Cross roads, etc.
Greater Noida West (Noida Extn.) had emerged as the biggest attraction since projects were cost effective. Gaur City, Mahagun Mywoods, Ajnara Homes, Panchsheel Greens, Supertech Eco Village 1, Saya Zion, Amrapali golf Homes, AIIMS golf City, RG Luxury Homes, Amrapali Dream Valley, Stellar Jeevan, Patel Neo Town, Nirala Estate, Amrapali Leisure Valley, Earth Towne, Trident Embassy, Rudra Palace Heights, ARihant Arden, Valencia Homes, Panchsheel Hynish, Amrapali Leisure Park, Galaxy North Avenue, Galaxy Vega, Cherry county, Amrapali Spring meadows, JM Florence, Samridhi Grand Avenue, Eros Sampoornam etc.