It has been two years since the Real Estate (Regulation and Development) Act (RERA) came into existence across the country. Not only has the Act helped identify and solve challenges pertinent to the real estate industry in the last two years but has also come a long way in instilling efficiency and transparency in the sector.
Despite the initial teething problems post the implementation of RERA, the Indian real estate sector is now reaping the benefits of the real estate law. RERA has gone in depths to address the issues and challenges prevalent in the real estate sector and provide solutions which are not only efficient but buyer-friendly as well. This, in turn, has helped develop trust and confidence in the real estate sector.
For example, Maharashtra RERA (MahaRERA) has received as many as 6,631 complaints since its commencement. Out of these, the State authority claims to have resolved more than 64 percent of the complaints. RERA has brought an ample amount of impression and discipline in the last two years. With the advent of RERA, the ground realities, issues, problems, and challenges in the face of the real estate sector have been addressed in a dexterous manner. Being a buyer-friendly law, RERA has helped solve the problem of delayed projects, which was a major cause of concern for the homebuyers earlier. Due to the implementation of RERA, the industry has become more structured, efficient, organised and is moving forward in the right direction.
Not only this, the number of projects and real estate consultants registered under the Act has also increased considerably across States. RERA has brought both the developers and the homebuyers on a common platform which was not the case before and has also created a synergy between the two. Consequently, there are many who started looking for a harmonious answer and ultimately withdrew the complaints. Owing to the difference between the demand and supply of residential units, the residential segment had been bogged down over the years. Additionally, the real estate sector faced several problems such as liquidity shortage in the aftermath of the NBFC crisis and high cost of capital. The intention of RERA has majorly been to provide additional protection to the consumers, safeguarding their interests, and ensuring that the delivery of the ongoing construction is a relatively seamless process.
In the long run, it is anticipated that the Act will bring a positive shift in the perception of the homebuyers. One should also applaud the efforts of the real estate companies who have strongly faced the challenges and the regulators who have been instrumental in ensuring that the Act is carefully implemented. MahaRERA has guaranteed the developers and the homebuyers to reduce the registration and dispute-redressal time further and accelerate the processes. While RERA completes two years, we expect that these measures in the long-term will transform real estate into a stable, mature and organised industry. Moreover, the trust deficit between the developer, the investor and the customer is also likely to improve very soon.