New Delhi, 20, JUNE 2023: Real estate continues to be one of the biggest sectors of the Indian economy, feeding the demand for over 250 ancillary industries, and employing more than ten percent of India’s workforce. To make the sector poignant and transparent, the Real Estate (Regulation and Development) Act 2016 (RERA), was brought into effect. A landmark decision, RERA helped improve the real estate sector’s operational performance, while instilling higher transparency and trust and re-building buyers’ confidence.
RERA has proved to be a great trust builder for consumers as they feel empowered and foster deep faith in its dispute redressal mechanism. Talking about the impact RERA has had since its inception, the Act has resolved over 1,00,000 disputes; the estimated value of the cases resolved is around INR 50,000 crore; and another INR 20,000 crore worth cases are set to be resolved soon, which include cases of delayed delivery, penalties, changed plans, quality, and refunds.
A game-changer for the real estate sector in India, RERA is evolving further ahead and is expected to play a crucial role in India’s growth story where the country aims to be a 5-trillion economy. While the demand and delivery of quality and affordable real estate was a prime concern for both, the government as well as the industry, RERA has been exemplary in revolutionizing the way real estate sector operates in India.
The genesis of RERA to address the homebuyers’ concerns of trust and accountability is well-begun but is definitely a work in progress. After the stupendous success of RERA, the real estate sector is hopeful about its evolution into RERA 2.0, which is expected to give further impetus to the sector. It is time now to have far-reaching discussions and campaigns to further up the introduction of RERA 2.0.
RERA 2.0 is expected to have an improved grievance redressal system, bringing landowning, and sanctioning authorities under the provisions of the Act, which will further increase the ambit of the Act.
Vishesh Prakash, Head, of R&R, says, “RERA Act has indeed been one of the most significant policy decisions for the real estate sector. In its short journey to date, there have been significant contributions to the sector. RERA Act has been a great game-changer for all stakeholders involved. With suggestions like getting landowning and development authorities under its preview, and according more powers to RERA authorities, it will definitely bring about the desired change. All stakeholders are hopeful that RERA 2.0 will help in bringing in more respite and enhanced credibility to the sector.”
With an improvised version and introduction of new clauses and increased ambit, RERA 2.0 is envisaged to look at bigger challenges and address the needs of all stakeholders with the underlying principles of trust and transparency. RERA 2.0 is expected to bring new zeal into the sector. The creation of a national-level body, with representations from state RERA authorities, can be beneficial in creating best practices, while also ensuring an improvised real estate sector.
Key expectations from RERA 2.0:
- Defined clarity on legal standpoints based on judgments and precedents
- Unified RERA courts to curb forum shopping and discrepancies
- Far-reaching discussions and campaigns to up the awareness about RERA 2.0 to facilitate homebuyers in making informed decisions
- Make the RERA redressal process seamless and user-friendly
- Wise use of AI to enhance RERA effectiveness and ensure deeper penetration
- State-level initiatives to fast-track grievance redressal