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    Telengana takes its time on RERA; registrations still to commence

    Telengana takes its time on RERA; registrations still to commence

    Telengana takes its time on RERA; registrations still to commence
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    By Nithya Balakrishnan   IST (Updated)

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    Government likely to begin registration by July 1; Regulator to be appointed soon.

    It had been almost a year since the Real Estate Regulatory Act (RERA) became a reality, but India's youngest state is still to implement any registrations under the Act.
    Even after notifying RERA, the state government neither has the website nor the regulator in place just yet.
    "Telangana is in the wait-and-watch mode and will implement a sustainable model of RERA based on best practices of other states. We expect to commence registrations by the 1st of July," State government sources tell CNBC TV18.
    Interestingly, despite being the laggard in RERA implementation, real estate in Hyderabad has had its best bull run in the last 5 years.
    According to property consultant Anarock, Hyderabad has outperformed other bigger Metros in both commercial and housing segments in the current financial year.
    Rakesh Reddy, director at Aparna Construction says the boom will continue "as real estate has mostly enjoyed transparency in this city."
    He added that developers understand and appreciate the government taking its time to implement a fool-proof model. This over-inventory will make developers more accountable and eliminate fly-by-night operators."
    Many developers have even begun construction at their project sites, in good faith, after submitting RERA-compliant registration documents to the state's housing department. This is permissible under RERA norms, but actual sales or direct marketing of units is not allowed until registration is complete.
    Home buyers across Hyderabad are meanwhile opting for ready-to-move-in homes, that do not fall under the ambit of RERA, which only covers projects initiated after January 1, 2017.
    "But those on a fixed budget looking to invest into smaller units by unorganised developers will be hit if the state does not formalise RERA soon," says Ajay Saipureddy, a recent home buyer in Hyderabad's upcoming Gachibowli area, as the continued growth of real estate in Hyderabad will depend directly on this.
     
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