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Real Estate Regulatory Act: A Major Growth Driver for India Construction Chemicals Market

Implementation of the long awaited Real Estate Regulatory Act is expected to bring a paradigm shift in the functioning of India real estate industry. Real Estate Regulatory Act has been framed and implemented to protect to the right of consumers. According to the “Real Estate Regulatory Act”, it is mandatory for real estate developers in India to register their projects and attain a registration certification from the Real Estate Regulatory Authority. The real estate developers would mandatorily submit details including names of contractors, architects, location details, carpet area details and the time period within which the project is expected to be accomplished, to the Real Estate Regulatory Authority.

Additionally, all real estate agents are mandated to register under this act and can sell only those apartments which have been approved by the regulatory authority. In order to safeguard the house buyers, builders or promoters are inhibited from taking any deposit from buyer without signing a written sales agreement. In case there is any delay in giving possession of the property to buyer, the builder or promoter is liable to return the amount taken as deposited from buyers with added interest amount as specified in the sale agreement.

Post implementation of the act, real estate sector would be functioning in more customer centric manner. Real Estate Regulatory Act would encourage investments in real estate sector. India construction sector currently contributes 15% to the GDP of country and construction sector of India is anticipated to be the third largest globally by 2030. Formulation and implementation of real estate act, GST, REITs (Real Estate Investment Trusts) would increase the interest of potential investors in real estate sector of the country. Strong growth in India construction sector has augmented the consumption of construction chemicals, which are required to construct durable buildings and act as a safeguard against the premature ageing of constructions. Presence of leading global players such as BASF, Fosroc, Pidilite and Sika is further strengthening the utilization of construction chemicals in the country through introduction of new and effective products in India construction chemicals market.

According to “India Construction Chemicals Market By Type (Concrete Admixtures, Waterproofing Chemicals, Flooring Chemicals, Repair and Rehabilitation Chemicals and Others), By Application and Competition Forecast and Opportunities, 2010 – 2020”, construction chemicals market in India is projected to grow at a CAGR of over 15% during 2015 - 2020. Changing consumer lifestyles, especially of the country’s robustly expanding middle class population, is driving demand for quality construction of residential structures, thereby driving demand for construction chemicals in India. Increase in the number of high rise buildings coupled with growing need for fast and high-quality construction is driving demand for concrete admixtures for blending purposes.


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