Real estate sector is going through a transition phase from being an unregulated sector to one with a regulator. Besides that there are various other factors such as implementation of GST, and RBI stance on the home loans that will impact the sector. Mint spoke to Niranjan Hiranandani, founder and managing director, Hiranandani Construction Pvt. Ltd and president, Naredco West about how developers are coping up with the regulatory changes and how sector is expected to move. Edited excerpts:
What problems are the developers facing in coping with RERA?
It’s a good law as far as transparency is concerned. As far as liquidity is concerned for the developers, it’s a big question mark. So, if the companies are already facing liquidity concerns or having cash flow negatives, then it will be further immobilization of the cash (if they have to deposit 70% of the money collected for a project in a separate account).
