Why Realty Sector Needs the Regulator Bill Urgently?

Bangalore: The government is likely to come up with a Real estate (Regulation and Development) Bill in order to regulate the real estate sector. It is believed that his much awaited real estate regulator bill is pending in parliament since 2009. The real estate sector is in urgent need of this bill as the sector is known as the institution where foul business and less transparency are practiced widely and the term regulation is a just a myth.

Although, the real estate sector contributes 5 to 6 percent of the country’s total gross domestic product (GDP), this vast sector needs more regulation to double the growth.

Moreover, the regulation bill is expected to control unethical and deceitful practices in the real estate sector and also to cover the construction development sector that includes townships, housing and built-up infrastructure.

So far, the real estate market has been dominated by property developers, builders and promoters. The sector has no such restriction for developers and on their credentials due to which dubious developers have poured into the market with range of offers to attract buyers and many of them have got trapped in dishonest investment deals. For instance, during the sluggish economic condition, several real estate companies have gone missing, leaving behind the investors only with the purchase agreement. There are developers who set their projects under low costs and give out properties in cheap deals but in such situation, it is mandatory to check their past work details, without believing them completely. 

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