As RERA Resets Indian Real Estate, Homebuyers Get Ready To Be Treated Like King

Are you a homebuyer who has been fence sitting for long now, thinking about various aspects such as quality of the project or the legality of the land or the price, among others? Let us tell you that the recently-implemented real estate law has reset the way developers and homebuyers have been operating in the market. Although too early to review, the developers have already started to conform to the new rules and there are layers of checks and balances that they know they must resort to. Similarly, sales too, have redefined itself. While pre-launches and soft launches have gone away for a greater good, the developer is now keen to please the homebuyer.

How does the developer gain?

Brand management is important for all developers, both big and small, given the reach of the Internet, social media and general awareness with respect to rights and duties a homebuyer has. All this together equips them to make the right decision. Hence, the Law and the Real Estate Regulatory Authority (RERA) ensure that a defaulting developer cannot escape without adequate punishment/penalty. Every developer will be at the risk of losing his standing in the market.

How does the homebuyer gain?

The Law is a win-win for both genuine developers and homebuyers but when you look at it closely, it is evident that latter is better placed than any other stakeholder. Consider the following sales strategies that a developer would align his company with to ensure a homebuyer gets back to him and at a cost that doesn't pinch either of them.

Also read: Things You Must Know About RERA Website

Focus is on one

Experts suggest that developers have begun to focus on one or two projects at a given time. This practice is expected to ensure that their cash flows are dedicated to the construction of a project than diverting it to launching multiple new projects. Homebuyers can now expect a better focus on quality and timely completion.

Also read: RERA Will Ensure Your Developer Focuses On Project Delivery

Stock receding

The large volumes of unsold stock have been a pain point not just for developers but for homebuyers, too. Therefore, sales teams across the offices of various developers are trying to tune down their inventory overhang from that of six to eight quarters to four to five quarters. This will ensure that the right balance of demand and supply is maintained.

Changing pricing strategies

The developer understands that their focus cannot be solely on the price or the profit, especially when the market is striving hard to recover. The focus now should be on the sales even if the prospective buyer asks for a certain bit of discount. And the key challenge for the sales teams remains to bring the potential buyer to the table for a talk and negotiation. Homebuyers, be assured that attractive discounts are not far away.

You are in the limelight

Yes, with the RERA around, a prospective homebuyer will enjoy the limelight. This is primarily because end-users are more active in the market today and the short-term investor class realises that there is practically no income to be made by flipping properties. Therefore, only end-users and long-term investors would be eying a property purchase and when the head count is less, there would be every attempt to tap this investing class. Anyway, the unsold stock doesn't translate into money for a developer, sales at a little less margin surely do.

More personalised meetings

Have you been complaining that you never get to speak to the sales team one on one after you seal the deal? Not anymore! Call it hand-holding but firms are going to make sure that they walk you through the entire home-buying process. Well, sales teams would bring the market to you through various channels like social media – Facebook, Twitter, Instagram etc. The bait would be the right pricing and the right location. Care would be taken to give the right explanations to homebuyers who are hunting for the right home. They realise your value not just as a customer but also as someone who can refer this project to another potential customer. You would be their way of indirect brand building, too. 

Here's the current status of RERA in your state as of  January 20, 2018:

Kerala had repealed the interim regulatory body in July last year citing that it was too much in favour of the developers. A new interim regulator has been established in March 2018. 

Telangana too is looking to learn from Maharashtra and Karnataka. Maharashtra RERA bagged a lot of praise after its swift implementation of RERA rules. Telangana, as per an official release has set up an expert committee with the Chief City Planner of the Greater Hyderabad Municipal Corporation (GHMC), Municipal Administration, Urban Development (MA&UD) department Director (Planning) and Director of Town and Country Planning on board to develop Telangana's regulatory body.