Major Advances in India's Real Estate Sector Through RERA: Insights from the Economic Survey 2023-24

The Economic Survey 2023-24 highlights significant progress in India’s real estate sector, largely driven by Real Estate Regulatory Authorities. The survey showcases notable improvements in dispute resolution, project and agent registrations, and sector transparency, reflecting RERA’s growing impact on enhancing the industry’s efficiency and trustworthiness.

Resolution of Complaints

One of the standout achievements highlighted in the Economic Survey is the resolution of 1,24, 947 complaints by Real Estate Regulatory Authorities across various states by July 1, 2024. This figure marks a significant improvement from the previous year’s total of over 1.06 lakh complaints. The increase of nearly 19,000 resolved disputes during the fiscal year 2023-24 underscores the effectiveness of RERA in addressing grievances and streamlining the real estate sector’s functioning.

The resolution of such a high volume of complaints is indicative of a more responsive and efficient regulatory framework. Prior to RERA’s implementation, many homebuyers faced challenges with developers failing to deliver properties as promised, leading to a backlog of disputes. The progress in complaint resolution reflects a growing trust in the regulatory mechanism and an enhanced focus on consumer protection.

Registration of Projects and Agents

The Economic Survey further reports significant strides in the registration of real estate projects and agents under RERA. As of July 1, 2024, a total of 1,30,186 real estate projects and 88,461 real estate agents have been registered. This represents a considerable increase from the previous year’s figures, which stood at over 30,000 projects and 16,947 agents.

This expansion in registration is crucial for fostering a more transparent and organized real  estate market. By mandating that projects and agents be registered with regulatory authorities, RERA aims to ensure that only compliant and verified entities operate within the sector. This process not only enhances accountability but also helps prevent fraudulent activities and misrepresentation by developers.

Implementation of RERA Rules Across States

The Economic Survey also highlights the widespread adoption of RERA rules across India. As of July 1, 2024, all states and union territories except Nagaland have notified rules under RERA. This comprehensive implementation demonstrates the commitment of various state governments to uphold the standards set by the Act and to ensure a regulated and transparent real estate environment.

RERA mandates the establishment of a Real Estate Regulatory Authority in each state and union territory, which plays a critical role in overseeing project registrations, handling complaints, and enforcing compliance with regulatory standards. The fact that 32 States and Union Territories have successfully set up these authorities reflects a concerted effort to strengthen the regulatory framework and enhance sector governance.

Sector Outlook and Future Prospects

The Economic Survey underscores an optimistic outlook for the Indian real estate sector. Following the disruptions caused by the COVID-19 pandemic, the sector is on a path to recovery, driven by increasing urbanization, improved affordability, and greater access to credit. The survey highlights that the real estate industry is poised for a significant transformation, with ongoing reforms and regulatory measures contributing to its rejuvenation.

The growing efficiency of RERA and the increased registration of projects and agents are expected to bolster confidence in the real estate market. As the sector continues to evolve, the focus on transparency, accountability, and consumer protection will remain central to its development. The positive trends observed in the Economic Survey suggest that the Indian real estate sector is well-positioned to sustain its growth trajectory and meet the evolving needs of homebuyers and investors.

Conclusion

The Economic Survey 2023-24 reveals significant progress in the Indian real estate sector, largely attributed to the implementation of RERA. With complaints resolved, a substantial increase in project and agent registrations, and widespread adoption of RERA rules, the sector has demonstrated notable improvements in transparency, accountability, and consumer protection. As the industry continues to recover from the pandemic and adapt to changing market dynamics, the ongoing impact of RERA will play a pivotal role in shaping its future trajectory.