Impact of Real Estate Regulatory Authority (RERA)

Author: Team Piramal Realty

It has been two years for deployment of the Real Estate Regulatory Authority (RERA) and it has made an amicable change in the sector. Before the act came into existence, there were several roadblocks like;

  • Delayed hearings
  • Delayed house possession
  • Unfavorable sales agreement clauses

With RERA buyers can easily approach the authority and get quicker decisions. 

With the introduction of Real Estate Regularity Authority (RERA), investor confidence in Indian real estate improved. Just because of policy reforms, which led to greater transparency and accountability. The sector, which was otherwise reeling through a rough phase, is now witnessing a long-term reform-driven growth.

Emerging Opportunity

Investors and lenders are looking at India as a lucrative market especially with the rollout of both RERA and GST, which in turn has helped to revive consumer faith in the real estate sector. These reforms will certainly transform the face of real estate in India. RERA implementation will give a fillip to India’s GDP in the coming years. 

In the last two years, RERA has helped in augmenting long-term growth by attracting increased foreign and local investments. According to the World Bank’s Ease of Doing Business Index, India has significantly improved its global ranking for dealing with construction permits from 182nd to 52nd. in a span of four years which was supported by a steady decline in days required and processes required for such permits. This can be further improved by closing some of these last mile gaps in implementation of RERA. All of these improvements have led to a boost in homebuyer sentiments. RERA also safeguards homebuyers by letting them check a real estate project, residential or commercial, before they actually buy it. Thanks to an increased transparency, people can take a right buying decision today. 

Since the inception of the real estate regulatory regime, the overall impact on the real estate sector has been positive. It helped the sector to register a structured growth. In the coming days, a refined and efficient execution of RERA across the country would promote. An unbiased transaction between the buyer, developer and financier by fostering high levels of transparency and trust amongst each other.

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Team Piramal Realty
Founded in 2012, Piramal Realty, the real estate development arm of Piramal Group is one of India's leading developers with 17 mn sq. ft of residential and commercial under development in and around Mumbai. In 2015, Warburg Pincus and Goldman Sachs two of the world's most respected private equity investors invested $235 million dollars for a minority stake in the company. Piramal Realty aims to be the gold standard in design, quality, safety and customer centricity in both residential and commercial real estate. Piramal Realty's developments, while being cutting edge and contemporary, focus on embracing a more intuitive definition of luxury, which celebrates nature, greenery, space, light, ventilation, art, culture and community living.

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