Impact of RERA on the real estate sector of India: What industry leaders think?

When the Real Estate Regulation Act was implemented on May 1, 2017, it took the sector by storm. Two years since RERA, it is worth considering how the RERA has shaped the industry and what industry leaders think of the transformation owing to the strict regulations and rigorous actions that came with this new Act. Like any new regime, the first two years were filled with uncertainty. For an industry such as real estate that has been traditionally unorganised and fragmented, this sort of transformation becomes even more overwhelming.

When asked about how far RERA has been successful in bringing transparency to the sector and what changes did the industry witness, Nabil Yusuf Patel, Director, Sales & Marketing and Business Development, DB Realty agreed that it has played a pivotal role in shaping the realty segment and expressed optimism about its future. Indeed, consumers are very happy too as they can now resolve their disputes and differences with the developers within the stipulated time of 60 to 90 days.

The main idea of RERA was to provide additional protection to consumers, safeguarding their interests and ensuring that the delivery of the ongoing construction is a relatively seamless process. Today, there is a resounding verdict in favour of it and the general opinion is that RERA has been successful in achieving the goals for which it was formed. It allows the end-consumer to see all updates on the property in one platform. Building a strong trust between the developers and buyers is arguably the most important achievement of RERA.

As a major employment generating industry and with many other auxiliary industries dependent on it, real estate is looking at a better future as the confidence between the buyers and developers is improving by the day. Industry leaders including Nabil Patel of DB Realty also highlight how RERA has brought a sense of formalisation to the sector which had been burdened by multiple layers of bureaucracy at all stages with respect to the construction of the building. One should also applaud the real estate companies who have stood strong to the challenge and the regulators who have been instrumental in ensuring that the Act is implemented meticulously.

With so many projects having a RERA cover, real estate investment is no longer considered as a risky proposition. The transparency in the sector is bringing in more consumer interest in India and among NRIs and HNIs. While a lot has been achieved in the short time, there is still a big area for improvement. Till date, 22 states and 6 union territories have already notified their RERA rules. There are still 12 states and Union Territories that need to implement it. Once this is done, RERA will be successful across India and the realty segment will reach a new high.