RERA reshapes Indian realty landscape in 8 yrs
Since 2016, as many as 121,891 projects and 92,557 agents were registered under various RERA authorities across the country; about 97,784 complaints were resolved so far by the RERA in 20 States
Hyderabad: Over the past decade, real estate sector in India has witnessed notable changes and advancements in various aspects not limited to regulatory reforms, market dynamics, technology adoption and consumer preferences. These developments have reshaped the landscape of real estate in India and have had a profound impact on the way properties are developed, marketed, and transacted in the country.
The real estate serves not only to meet the burgeoning housing demands of the expanding population but also plays a pivotal role in the Indian economy, embodying a crucial sector that has sustained significance over several decades. This sector has experienced notable evolution, marking the onset of a period characterised by heightened professionalism, transparency and fortified structural foundations.
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a significant legislation in India aimed at regulating the real estate sector to safeguard the hard-earned money of the homebuyers and promote transparency and accountability. Overall, the RERA aims to protecting the interests of homebuyers and promoting growth and development in the industry.
Before RERA, the real estate sector grappled with various challenges including lack of transparency, unfair practices, project delays, and conflicts between buyers and developers. Homebuyers used to face issues like unclear contracts and deceptive advertising, eroding trust. The RERA aimed to address these by ensuring transparency, timely project completion, and accountability among developers.
As per the latest report by real estate consultancy Anarock Group and National Real Estate Development Council (NAREDCO), as many as 121,891 projects and 92,557 agents were registered under various RERA authorities across the country during the last eight years. Since 2016, nearly about 97,784 complaints were resolved so far by the RERA in 20 States.
“There is a lot of variation in the working style of the RERA in each State. While some RERA authorities are only consumer-friendly, few are builder-friendly also. There is no point in taking action or levying fines against a developer after cheating the buyers. The authorities must take preventive measures so that no consumer would face any loss,” G Hari Babu, President of NAREDCO told
Bizz Buzz.
He said, “All the RERA authorities should take stringent steps against the unscrupulous builders who enter the real estate sector and quit immediately after enjoying short term gains. There is no mechanism to identify such realtors. We are creating awareness among public and giving several suggestions to the homebuyers to purchase properties only from the RERA-registered realtors only.”
“With the initiatives such as the RERA, the government has aimed to reshape the landscape of the real estate sector. The sustained emphasis on the development of infrastructure projects, during the last few years, including expansions of metro networks, enhancements to road networks and improvements in connectivity, has had a profound impact on the real estate demand.”
Hari Babu further said, “The amalgamation of technology into real estate operations, encompassing practices like virtual reality for property tours, online transaction platforms, and the incorporation of smart home features, stands as a pivotal element in augmenting operational efficiency, fostering transparency, and enriching customer experiences.”
“With the increasing technology integration and urbanisation on the rise, a greater emphasis on sustainability and green building practices along with government policies and regulations are some of the factors that will keep the momentum going on. Adapting to evolving regulatory landscapes will be the key to success for developers and investors,” he added.
When compared to the available residential units from 2014 to 2023, the inventory overhang across the top seven cities stood at its lowest in last 10 years at 15 months with 6 lakh units by the end of 2023 witnessing a positive decline from 40 months during 2016 when maximum unsold units were recorded with over 7.90 lakh units across top seven cities.
According to the NAREDCO President, the valuation of properties has enhanced not only in the tier-1 and tier-2 cities but across the country. In terms of value, the real estate sector was estimated to grow at 15 per cent annually to reach $1 trillion by 2030 from $285 billion today. In terms of annual sales, the sector is projected to grow at 5 per cent to reach 10 lakh units by 2030 from 7 lakh units this year.
The real estate sector’s turnover has been escalating much faster due to the increasing land rates, construction costs and flat sizes in the residential market of India. The real estate sector is a significant employment provider in the country. As the sector continues to grow, he expects the employment to grow multifold in the coming years. Over 18 per cent of the workforce is employed in this sector.
