RERA 2.0: What amendments mean for homebuyers & developers

RERA 2.0 heralds a quantum leap in the real estate domain of India, privileging homebuyer protection whilst enhancing developer accountability.

The amendments proposed for 2025 involve mandatory third-party escrow audits to ensure transparency vis-a-vis fund diversion, standardized builder-buyer agreements including penalty clauses for delayed deliveries; and tech-enabled grievance portals for 45-day resolutions. For homebuyers, this brings a new level of transparency, with promised amenities, parking specifications, and defect liability periods (extended now to five years) now legally binding terms of a contract. On the developer front, compliance is exponentially elevated - there will be tighter project registration thresholds across states, quarterly drone-based construction progress audits mandated, and an expanded definition of 'ongoing project' to include work in a currently stalled phase.

States like Maharashtra and Karnataka have made headway in implementing increased enforcement authority with guidelines specific to senior housing and requisite quality audits.

Talking to Bizz Buzz, Shiv Garg, Director, Forteasia Realty says, “RERA 2.0 allows homebuyers to eliminate or circumvent the significant information asymmetry customary in real estate transactions by enforcing refund rights that demand all financial information be disclosed- and also embarked upon an unprecedented step toward equality - but it will be recalibrating business practices to enable improvements to their financial and project management discipline.”

Taking a bold rewarding step for the Indian real estate sector, RERA 2.0 is set to strengthen regulatory frameworks for the protection of homebuyers and developers alike.

Sundeep Jagasia, Director and Managing Director of Shree Krishna Group says, “With increased scrutiny, they enjoy additional clarifications with respect to streamlined procedures and a better business environment. As they transform through the changes, the RERA 2.0 with greater emphasis on fair play and equitable outcomes thereby strengthens faith and stability.”

The proposed RERA 2.0 amendments in 2025 signal a transformative phase for India’s real estate sector.

Irfan Khan, Founder & CEO, EBG Realty says, “By introducing stricter compliance norms, faster grievance redressal mechanisms, and enhanced digital transparency, the reforms empower homebuyers while holding developers more accountable.”

This shift builds greater trust in under-construction properties and ensures timely delivery, he said.

For developers, though initially demanding, these changes foster long-term credibility and market discipline. RERA 2.0 is not just regulatory tightening—it’s a progressive step toward creating a more balanced and investor-friendly ecosystem that bridges the trust gap and drives sustainable growth across India's housing market.

EoM.