Ladakh Notifies RERA Rules, Real Estate Market Set To Benefit
Just like other states and union territories in India, Ladakh, on October 8, 2020, notified its rules under the Real Estate (Regulation and Development) Act (RERA). Durga Shanker Mishra, secretary, Ministry of Housing and Urban Affairs (MoHUA) welcomed the development. Taking to Twitter, the minister said, “Extremely happy to share that Ladakh becomes the 34th state/UT which has notified rules under RERA. It paves the way for implementation of this transformative legislation in the union territory, opening new vistas of real estate development journey.”
While it may be too early to gauge the potential of the property market in this UT, the onset of RERA will bring in the much-needed transparency within the local real estate market, encouraging investors and end-users, alike. Unlike Mumbai or Bangalore, Leh and Ladakh have not been very active real estate markets and the buoyancy was maintained by the locals and the natives. With the scrapping of Article 370, there were a lot of mixed emotions but in the future, Ladakh, which consists of two districts of Kargil and Leh, may attract more home buyers in a more regulated market.
How will Ladakh benefit with RERA?
One of the major benefits of the RERA is that it puts all information regarding a property in the public domain. This ensures greater transparency and arms the home buyer by giving them a regulatory authority, where grievances can be redressed. The RERA also standardises buying and selling, in terms of carpet area, rather than super built-up area. While the Ladakh RERA rules have been notified, the website will be operational in the days to come.
A lot of infrastructural developments are underway in the Leh, Ladakh and Kargil area. Predominantly suited for hospitality and tourism industries, improvement in infrastructure will ensure that this region is connected to other parts of the country, facilitating trade and commerce. Additionally, the Global Investors Summit also brought in Rs 14,000 crores to be spent on job-driving industries. This could, in turn, create demand for housing. However, it is very early on in the development cycle and trend watchers suggest adopting a ‘wait and watch’ approach, rather than speculating on real estate investments in Leh-Ladakh.