Recently, an amendment was passed by the government bodies, where a set of rules stated that developers might have to pay 11.2% interest on delayed projects, in case they miss deadlines. A few months ago, Ministry of Housing and Urban Poverty Alleviation (HUPA) rolled out some rules to relief home buyers from chaos, bring transparency in real estate sector, and sustain customers’ interest to invest in the real estate property.
The new rules state that home buyers can only demand compensation if the developers fail to deliver their project on proposed timeframe. Builders have to pay 2 % higher than prime lending rates as set by the State Bank of India. Also, if the buyers are defaulters, then they are liable to pay the same amount of interest to the developers.
The move positively impacts not only the home buyers but also the real estate sector, too. Let us see how these new rules prove to be beneficial for property market and real estate.
After Real Estate Regulatory Authority (RERA) Bill that came into act this year, the new rules aim to fix accountability in the real estate for developers and stakeholders. According to experts, these rules will allow developers to win the trust of their customers. Home buyers will be informed about the project in which they are investing along with complete paper documentation.
All these years, delay in projects have become a major concern for buyers and investors, too. But these new rules will make a complete justice to both the parties. It will also help avoid chaos and will also help secure the investments of the buyers.
Real Estate Sector:
The rules will help developers to build credibility, motivate to complete projects on time, and build trust among development authority and end-users. In fact, it is an opportunity where the developer can win trust factor of customers and thereby uplift their brand identity in the market as well.