RERA Bill's new avatar to ensure timely completions of projects

If the new avatar of the real estate regulatory bill that was cleared by the Cabinet recently is enacted, it could push real estate developers to rely more on joint venture projects with land owners because they will have lower availability of surplus cash to buy land, said India Ratings and Research (Ind-Ra).

India Ratings said it believes that the provision which prohibits presales until the land is in possession and all approvals are in place, along with the provision to escrow a portion of sales proceeds will lead to higher reliance on joint venture projects and consequently the much needed elasticity in real estate prices.

Source: Magic Bricks