News Point: RERA rules are yet to be notified but the buyers across the state of Goa are optimistic that it would end uncertainty in the real estate market.
A cross section of buyers, brokers and other stakeholders of the built environment of Goa real estate believe the key to open the trust of the homebuyer lies in the RERA. It will give them a sense of comfort that the investment is safe.
Goa real estate has been witness to a prolonged spell of slowdown and both the homebuyers as well as the developers have waited for long to see a turnaround. Slow moving market, demonetization, GST and RERA have collectively led to a situation where the fence sitting buyers have preferred to defer their decision of buying a house. While the first three factors have dented their confidence, RERA promises to uplift the sentiments once it is notified.
Most of the analysts and buyers on ground admit that they are eagerly awaiting the RERA compliance of the projects. Goa is to notify the RERA rules pretty soon and the homebuyers are expected to come back to the market with this. Reasons are simple: once the projects are RERA notified the under construction projects would be seen as a safer bet. From a cost perspective most of the investors and the end users in the state prefer new launches but are not sure due to delays and the execution risks attached.
Michael Gonsalves, a property agent in the local market believes majority of the homebuyers in the state prefer a new launch project due to the price difference and deferred payment plans compared to ready apartments. But then the execution delays and uncertainties had turned them off the market. Now with RERA compliant projects this confusion would be over.
“A good number of developers in Goa are not very organized developers with great brand recall value. The developers who have good brand recall value are mostly from outside Goa and they are operating in premium and luxury segment. Over and above that they also command a sizeable premium. So, for an average budget conscious buyers there were uncertainties and post RERA that would be over,” says Gonsalves.
The buyers too seem to be convinced with the positive impact of RERA. They feel once the RERA rules are notified and the projects fall into its ambit, the buyers are safe even when something goes wrong in terms of project delays or other execution risks.
“If only I know that my investment is parked safe and I will get compensated if project is delayed or quality is an issue, I won’t mind paying upfront in a newly launched project also. The problem in today’s market is this element of uncertainty with regard to the costliest purchase of my life,” says Mayra Fernandes, a homebuyer.
“It is no doubt buyers’ market from the standpoint of pricing but the larger issue today is trust. RERA promises to bring back that critical element of trust. With the kind of inventory that is available today I feel one should not miss out the opportunity now. Moving forward, the prices are set to appreciate. Once RERA is notified the market dynamics will take a paradigm shift,” believes another homebuyer, Raksha Jalota.
In Goa, the property market could be easily bifurcated into North Goa and South Goa. North Goa is the main tourist attraction along its coastal belt and is by and large investor driven that is home to very many luxury projects. South Goa is more of end user driven affordable destination. But the transactions are pretty slow in both these destinations as in recent times only a few transactions have happened and that too with the ready to move properties.
Since ready to move properties are few and far between, there is anticipation for RERA that could create a level playing field for the buyers of new launched and under construction properties as well.
Unlike other states where the regulatory changes have led to the buyers getting skeptical to begin with, in Goa where the literacy rate is high there is greater awareness with RERA and its various provisions. It is hence no surprises that the buyers are rather waiting for the RERA rules to be notified. There is a general feeling that the RERA compliances will lead to a better eco system of property market in this part of the world.
The wait for RERA is as much in the tourist locations of North Goa as in the affordable locations of South Goa where most of the end users buy their houses.
