If you take a glance at the statistics of India’s real estate sector in the last few decades, you would notice that the industry has gone through an incredible transformation. This can be evident from the fact that real estate is one of the major contributors to the country’s GDP in the recent times. From an unorganized and unregulated sector, Indian real estate has become one of the largest and most resilient industries across the world.
However, the industry was not this stronger in the olden days. It has had its fair share of ups and downs over the years. Earlier, issues like delays in projects, poor construction work, inflated costs, project cancellation, and fraudulent activities by builders were very common as there was a trust deficit among homebuyers towards the realty sector. But the inception of Real Estate Regulation Act (RERA) in 2016 came as a big relief for the buyers. RERA was primarily enacted to curb the irregularities in the sector and protect the rights of buyers.
Owing to the implementation of RERA and digitization of land registration process, Indian real estate market’s transparency level has moved upwards. Moreover, the act is not only bringing the much-needed clarity in the business, but it is also seriously impacting the number of consumer complaints across the country. According to the statistics, the authorities of several states and Union Territories (UTs) resolved over 48,556 consumer complaints in 2019 in comparison to over 3 crores pending cases during the same year.
How RERA has changed homebuyers’ life
RERA has been supporting the Indian real estate ecosystem significantly. From registration to the final hand over of the project, it ensures that there is no place for developers to do any sort of mistake and also make certain that builders give what they promise. Elaborating upon the home buyer’s benefit that RERA has brought, it also comprises the provisions of penalty to the builders in case of any delaying in the completion of the projects.
Before the implementation of RERA, there were multiple versions and methods of calculating carpet area of the property. However, with RERA coming into the picture, there is a standardized process of measuring the carpet area and there is no ambiguity now.
Furthermore, under the RERA act, a buyer is eligible to check the credibility of a developer before investing in the real estate unit. All information related to the builder including market credentials, financial strength, past track record, projects, unsold inventories, and his pending projects will be available for customer satisfaction.
To summing it up, RERA has fixed a comprehensive framework to protect the rights of real estate customer. Therefore, the investors can now relax and invest in properties with a fearless mind. On the other hand, if we take builders’ perspective into account, RERA initially appeared to be an obstacle for a few developers as they had to invest large amount of time and resources in uploading a lot of information on the authority website. But with time, the growing trust of investors in real estate acted as a catalyst in the sales of residential projects and it actually proved to be a facilitator for the developers.