RERA effect: Flats will cost more in Karnataka

Following the implementation of Real Estate (Regulations and Development) Act 2016, (RERA) the rates of flast at new apartment complexes will increase to some extent said Ashish Puravankara, president of the CREDAI, Bengaluru.  Speaking at a press meet on Wednesday, he said, as per the directions of the State Government, projects that are completed, that are 60 per cent completed and sales registered will not come under RERA.  

The rest of constructions and new constructions will come under RERA.  Since there are restrictions imposed under RERA, there may be a drop in demand for flats that come under it.  Hence there may be a possible price hike for sometime, he said, reported Kannada Prabha.

Speaking on the occasion the president of CREDAI Karnataka former president Balakrishna Hegde said all constructions over 500 square meters will come under RERA. The status of all projects already started should be submitted by July 31.  

For the new projects, an amount of 70 per cent has to be kept aside and the project must be completed as per schedule.  Also till such stage as the building is completed and OC from government is obtained the flats cannot be sold. Occupancy Certificate states that the building has all necessary facilities like water, electricity etc.  Since obtaining those takes time, the cost will go up and the customer has to bear that, he said.  

RERA will bring transparency in real estate. Hence CREDAI welcomes it. But the association had requested for bringing not 500 sq mt but all constructions above 100 - 150 sq mts under RERA.  But the government has not agreed to that. Hence there are possibilities of violations of RERA and public not benefiting from it, said Balakrishna Hegde.

CREDAI Karnataka President Shankar Shastri was present.

• RERA effect
• flast to cost more