Impact of RERA on Real Estate

Abstract

In 2016, the Real Estate (Regulation and Development) Act (RERA) was enacted in India with the aim of stimulating growth in the housing sector. RERA serves as the regulatory authority overseeing the real estate domain in the country. It mandates that developers, buyers, and sellers adhere to its prescribed rules and regulations. RERA holds legal authority to supervise the construction of estates, buildings, and flats, as well as to regulate minimum selling prices of apartment houses. To assess the impact of RERA on the real estate sector, a questionnaire was devised in collaboration with real estate experts. The data gathered through this survey was analyzed using frequency index analysis & Relative index method to discern both positive and negative impacts of the RERA act on India's real estate sector. Following analysis, the top 5 factors were identified, revealing that RERA projects provide a sense of security, benefiting homebuyers, builders, and contractors alike. Additionally, it was found that approximately 70 % of individuals working within the real estate sector possess a comprehensive understanding of the RERA act. Notably, instances of fraudulent transactions have witnessed a decline post the implementation of RERA. Developers now recognize the necessity of obtaining written consent from homebuyers should they intend to make any alterations to the project plan. Moreover, RERA mandates that developers adhere to project timelines following registration, thereby ensuring timely project completion. This comprehensive framework established by RERA fosters transparency and accountability within the real estate sector, ultimately enhancing consumer trust and investor confidence.