The act makes it mandatory for each state and UT to set up its own real estate regulator and frame rules to govern the functioning of the regulator. It is aimed at encouraging greater transparency, citizen centricity, accountability and financial discipline in the sector.
“Extremely happy to announce that the UT Government of Jammu & Kashmir has notified the Rules under RERA yesterday CB. It has become the 33rd State/UT to do so. Implementation of RERA in the UT of J&K will usher a new era of transparency & accountability in the real estate sector,” tweeted Durga Shanker Mishra, secretary, Ministry of Housing and Urban Affairs (MoHUA).
West Bengal is the only state that has notified its own real estate law. Jammu & Kashmir had come up with a real estate regulation act, but it was repealed by the Jammu & Kashmir Reorganisation Act.
“RERA will ensure regulation & promotion of real estate & set up an adjudicating mechanism to protect interest of homebuyers. It will open up new vistas for development of UT J&K by ensuring efficient & transparent transactions. It will also ensure timely delivery & quality construction of real estate projects,” Mishra tweeted.
Following the scrapping of J&K’s special status, it will be treated like any other state or UT and restrictions on outsiders purchasing property have been lifted. Experts are not sure how the markets in the two new UTs will respond.
As on July 2020, 53,364 real estate projects have been registered under RERA across the country.
The number was 43,208 projects by the end of July 2019. The States with maximum project registrations currently include Maharashtra, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, Telangana and Tamil Nadu. Cumulatively, these seven states account for a significant 85% share with nearly 45,278 registered projects. Maharashtra tops the list with nearly 25,604 project registrations.
Interestingly, UP has seen the least annual growth of 5% in project registrations. In July 2019, around 2,676 projects were registered in the state – currently, the number stands at approx. 2,818 projects. Evidently, developers in the state were more focused on project completions than on new launches.