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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