What RERA Means for the Real Estate Sector of India


On 1st May 2016, the Real Estate (Regulation and Development) Act was introduced with 60 out of 92 sections in force. It fully came into effect on May 1, 2017, with an aim to create a new era of an organized real estate sector in India. In May, 2019, RERA has completed two years and it has turned out to be an important policy initiative. Reliable names of the real sector like that of Vinod Goenka, have expressed many a times that it has changed the way business is executed in the real estate sector. Before RERA came to the scene, there was absolutely no real estate regulator in the country and due to this, a lot of builders used to take home-buyers for a ride. This resulted in delays in delivery and deficiency in services and home buyers left with absolutely no point of relief to get their grievances addressed.

The real estate industry has needed a regulatory body for quite some time now and the concept of RERA Certified Property has finally come into existence. The biggest success of the reform is that it has revived the confidence of home-buyers. As per reports, the first quarter of 2018 recorded an 8 percent increase in demand for housing. The industry also witnessed an upward shift in Private Equity investments, which indicates that investors view the implementation of this Act as a positive step. After the implementation of RERA certified projects in Gurgaon along with many major cities of India, the industry has experienced the improvement in project execution and delivery of it in the residential segment. Provisions of the Act have forced the real estate companies to focus more on project delivery which has resulted in the availability of ready to move apartments in Gurgaon as well as in different parts of the country for the home buyers. As per the findings by Money Control – “Till date, a total of 27,000 real estate projects have been registered with the regulatory authorities across the country and approximately 17,000 applications for registration of agents received so far, says the data on the implementation of RERA.”

RERA being a new law, teething problems are bound to come with it but industry heavy weights like the Dynamix Group and the likes have confirmed that the Act has been able to generate a positive reaction from both the developers as well as the consumers. Talking about its future, RERA promises an organized industry in the real estate sector as it is progressive legislation.

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