Housing in India is also sold by real estate brokers and these brokers may act as marketing personnel for certain developers.
Indian real estate sector is a very different segment from what it was five years back. With Prime Minister Narendra Modi getting a second term, the emphasis on promoting affordable housing in India with partnering with the private sector is at an all time high.
The Center's Housing for All policy by 2022 is largely dependent on providing affordable housing pan-India by incentivising developers and homebuyers with several schemes and benefits.
But an extremely important and in fact a critical bridge to achieve any success for affordable housing in India is how real estate brokers and channel partners embrace RERA and make it a success in their way of dealing with the customers.
Housing in India is also sold by real estate brokers and these brokers may market for developers. Sales of any projects, and especially in the price sensitive affordable housing segment, is also dependent on brokers interaction with potential customers.
Before RERA kicked in, there were many complaints by customers of wrong commitments by brokers who directed their hard earned savings to fly-by-night brokers who never delivered on their committed deadlines.
What we have also witnessed in the last five years of policies including RERA, GST and demonetization implementations, has definitely helped the segment to have a stronger foundation and to weather any storm in its way.
This has led to affordable and mid income housing witnessing consistent growth in new launches and absorption of housing units over the last five years with all market indicators showing an upward trend.
This has largely been possible by RERA registered brokers who have gone all the way to explain all the benefits and the risks associated with any projects.
This beginning has actually helped the housing sector to get the much-deserved respect as a legitimate, organized and ethically driven investment segment.
RERA makes brokers punishable if they do not comply and abide with the regulator's strictures ruling. Earlier, smaller brokers used to fleece customers by selling housing units, which were on high risk as they used to give larger commission.
But with RERA, brokers who made their money out of the ignorance or unwitting trust of clients have been removed from the system.
In fact, today developers only work with RERA registered brokers and have seen that customer complaints have gone down to a large extent as homebuyers are now better informed.
It is not surprising that Housing sector's contribution to the Indian GDP is expected to reach 11% by 2020 as several ancillary industries are co-dependent on growth of housing sector in India.
Going ahead, we will experience a cohesive approach by the central and state government to make housing a reality for common Indian with faster delivery by the developers.
This will also be driven by the new breed of RERA registered brokers who will ensure customer have all the details to make an informed decision.