The implementation of the Real Estate (Regulation and Development) Act (RERA) has significantly shaped India’s housing sector, with measurable improvements in transparency, consumer protection, and investment confidence. A report by Knight Frank India, presented at the 17th NAREDCO National Convention in New Delhi, highlighted the sector’s transformation under the regulatory framework.
As of mid-2025, more than 1.5 lakh housing projects and 1 lakh real estate agents are registered under RERA. Alongside registration, the regulator has also resolved nearly 1.5 lakh consumer complaints, indicating its growing role as a grievance redressal platform for homebuyers across states.
Rise in Private Equity Inflows
One of the key indicators of improved market confidence has been the sharp increase in private equity (PE) inflows into real estate. According to Knight Frank, cumulative PE investments touched $26 billion between 2017 and 2020, compared to $17.5 billion in 2011–2016. The report attributes this growth to greater institutional trust in the regulatory structure that RERA has introduced.
This influx of capital has not only supported developers but also reflected positively in market performance. The NIFTY Realty Index reached an all-time high in September 2024, underlining the sector’s resilience and signalling that real estate has become a long-term asset class for both domestic and global investors.
Housing Sales and Market Expansion
The report also noted the performance of housing sales in recent years. In 2024, sales reached an all-time high of ₹3.1 lakh crore, supported by regulatory reforms, demand from end-users, and the confidence of lenders and private equity firms. The consistency in sales trends demonstrates that RERA’s framework has helped in reducing the perception of risk in the residential market, particularly for large-scale projects.
Developers, who were earlier criticised for delays and lack of disclosure, are now subject to mandatory compliance norms such as project registration, escrow account maintenance, and progress reporting. These measures have addressed some of the fundamental trust deficits that earlier discouraged both homebuyers and investors.
Complaints Resolution and Regulatory Strengthening
The resolution of 1.5 lakh consumer complaints since RERA’s inception is seen as a critical achievement. Buyers who previously faced delays and limited recourse now have an institutional platform to challenge non-compliance and seek timely redressal.
Saurabh Mehrotra, Executive Director, Valuation and Advisory at Knight Frank India, observed that the inflow of capital since 2017 is a direct outcome of improved credibility and transparency. Similarly, G Hari Babu, President of NAREDCO, stated that RERA has helped rebuild trust not only for buyers but also for financial institutions and global investors.
Despite these achievements, the report also stresses the need for further strengthening of the system. One of the main challenges has been the variation in implementation across states. While some states have adopted strict enforcement, others lag in compliance monitoring and grievance disposal timelines.
Knight Frank recommends evolving the framework towards a ‘One Nation, One RERA’ model to harmonise rules and ensure consistency. This would also allow greater efficiency for developers operating in multiple states and improve investor visibility on regulatory risks.
Additionally, the use of technology-driven solutions for approvals, monitoring, and consumer grievance handling has been identified as the next step. Automated systems can help streamline processes, reduce delays, and further strengthen buyer confidence.
India’s housing demand is projected to expand steadily over the next decade, driven by urbanisation, demographic trends, and infrastructure development. With regulatory mechanisms like RERA providing a transparent framework, the sector is positioned to attract continued institutional and retail investment.
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