The introduction of the Real Estate (Regulation and Development) Act, 2016 (RERA) was a landmark moment for India’s property sector. Before RERA, the real estate market often faced issues like project delays, lack of transparency, and unfair practices. Today, RERA has brought accountability, trust, and stability, changing how buyers, developers, and investors interact.
🔑 Key Impacts of RERA on Indian Real Estate
1. Transparency and Accountability
Developers must register their projects with RERA before advertising or selling.
All project details—layouts, approvals, timelines—must be disclosed to buyers.
✅ Result: Homebuyers can now make informed decisions.
2. On-Time Delivery of Projects
Developers must deposit 70% of project funds in an escrow account.
This ensures money collected for one project isn’t diverted elsewhere.
✅ Result: Reduced delays and more timely deliveries.
3. Protection for Homebuyers
Buyers can now claim compensation for project delays or false promises.
Interest penalties apply if a developer defaults.
✅ Result: Increased buyer confidence in the market.
4. Standardization Across the Industry
Use of carpet area instead of super built-up area for pricing.
Fairer property valuations and reduced buyer confusion.
5. Boost to NRI and Institutional Investment
With better regulation, NRIs and global investors see India as a safer real estate market.
Strengthened trust has brought fresh investments into residential and commercial projects.
📈 The Bigger Picture
RERA has professionalized Indian real estate. Developers are now more cautious, buyers are more confident, and investors are more willing to explore opportunities. While challenges remain in enforcement across states, the overall impact of RERA has been transformative.
✅ Conclusion:
RERA has created a more transparent, fair, and reliable real estate market in India. For homebuyers and investors, it has shifted the balance of power, ensuring protection and trust. For developers, it has raised standards and credibility in the industry.