Mumbai 2017: The Maharashtra Real Estate Regulatory Authority (Maha RERA) gets additional charge of being the regulator for two Union Territories - Dadra Nagar Haveli and Daman & Diu, reports Economic Times.
The central government has already sent a directive to this effect to the Maharashtra government, said an official of Maha RERA.
Maharashtra was one of the first states to notify rules under the RERA act.
After the deadline for notifying Real Estate Regulatory Authority (RERA) rules, Maharashtra took the lead among states with the highest number of project registrations. Till date, Maharashtra receives around 12,000 applications for registration of ongoing projects.
Maha RERA officials estimated around 800 ongoing realty projects in both the Union Territories. The regulator is also working on finalizing the place of hearing for matters related to realty projects.
In addition, the regulator is trying to put in place a system or mechanism to register projects from these two regions.
“Both the Union Territories of Dadra Nagar Haveli and Daman & Diu will come under Maha RERA’s jurisdiction and the regulator can easily take up this additional charge based on the performance so far,” said another state government official.
In a major move to protect homebuyers and boost investment in the real estate sector, the government passed the Real Estate Regulatory Bill in March 2016. The Act came into effect on May 1, 2016 (with 69 of 92 sections notified). Remaining provisions came into force on May 1, 2017.
The RERA Act is supposed to protect the interest of home-buyers and usher in transparency and accountability into the otherwise unregulated real estate sector.
Southern cities have more REIT-worthy properties
BENGALURU | MUMBAI: Southern cities such as Bengaluru, Chennai and Hyderabad have the largest pie of assets that can be listed under the Real Estate Investment Trusts (REIT) with more than 156 million sq ft, or about 15 sq km, of such properties.
Modelled after mutual funds, REITs raise funds from a large number of investors and invest in commercial real estate assets.
According to property consultancy firm JLL India, 84% of total office assets in Bengaluru can be listed under a REIT. It is followed by Chennai where 69% office spaces are REIT-worthy, Hyderabad with 67% and Pune with 63% REIT-worthy office spaces.
“With REITs set to launch, many developers have realized that office projects are better positioned to give them higher dividends in the future too.Besides this advantage, they can also capitalize on the capital value appreciation whenever they exit,“ said Ramesh Nair, country head, JLL India.
IT cities tend to have a higher share of leasable assets than non-IT cities where strata sold offices was the norm earlier, JLL said. In Delhi-NCR, 54% of office spaces are REIT-worthy, while in Mumbai, it is 44%.