Impact of Real Estate (Regulation and Development) Act, 2016 on the Indian Real Estate Industry

Abstract

The Real Estate Regulation and Development Act, 2016 (RERA) was introduced in India to tackle the long-standing issues in the real estate sector, including lack of transparency, project delays, and fraudulent practices. The primary objective of RERA was to protect the interests of homebuyers and provide a more transparent and efficient framework for real estate transactions. Since its
introduction, RERA has had a significant impact on the Indian real estate industry. One of the most notable changes brought about by the act is the mandatory registration of all real estate projects with the regulator. This has led to a more structured and streamlined process for project approvals, ensuring that only genuine developers with adequate financial and technical capabilities are allowed to undertake projects. Another significant impact of RERA has been the increased transparency in
the sector. Developers are now required to disclose all project-related information, such as the carpet area, completion timelines, and project approvals, on the RERA website. This has empowered homebuyers with more information and reduced instances of fraudulent practices. Moreover, the act has set up an institutional mechanism for dispute resolution, which is aimed at providing a faster and more effective solution to homebuyers’ grievances. The introduction of RERA has also helped in promoting a more professional approach to the real estate industry by bringing in stricter regulations and accountability.