{"id":13816,"date":"2018-08-25T08:29:44","date_gmt":"2018-08-25T08:29:44","guid":{"rendered":"https:\/\/www.legalraasta.com\/blog\/?p=13816"},"modified":"2026-04-08T10:49:40","modified_gmt":"2026-04-08T05:19:40","slug":"rera-impact-on-real-estate-in-india","status":"publish","type":"post","link":"https:\/\/www.legalraasta.com\/blog\/rera-impact-on-real-estate-in-india\/","title":{"rendered":"RERA impact on Real Estate in India"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalraasta.com\/blog\/rera-impact-on-real-estate-in-india\/#Overview\" title=\"Overview\">Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalraasta.com\/blog\/rera-impact-on-real-estate-in-india\/#Why_the_need_of_RERA\" title=\"Why the need of RERA\">Why the need of RERA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalraasta.com\/blog\/rera-impact-on-real-estate-in-india\/#RERA_Impact_on_Real_Estate_in_India\" title=\"RERA Impact on Real Estate in India\">RERA Impact on Real Estate in India<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalraasta.com\/blog\/rera-impact-on-real-estate-in-india\/#RERA_Impact_insurance_cost_for_construction_and_land_title\" title=\"RERA Impact insurance cost for construction and land title\">RERA Impact insurance cost for construction and land title<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalraasta.com\/blog\/rera-impact-on-real-estate-in-india\/#RERA_Impact_on_Real_Estate_Agents\" title=\"RERA Impact on Real Estate Agents\">RERA Impact on Real Estate Agents<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Overview\"><\/span>Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>RERA means Real Estates regulations act, 2016 which is passed by the Indian\u00a0government. Although it was passed on 10th March 2016 by Rajya Sabha\u00a0followed by the Lok Sabha on 15 March 2016. But it came into existence on 1 may 2016. There were some sections that have delayed and come into force from 1 may 2017. Its motive is to boost up the investment in the real estate sector. Not only state government but the central government are also required to notify their rules under the act on the basis of the model rules framed under the central act. Home buyers are now getting relax to some extent after the process <a href=\"https:\/\/www.legalraasta.com\/rera-registration\/\" target=\"_blank\" rel=\"noopener\">RERA Registration<\/a>. This article will let you know how RERA impact on Real Estate in India:<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_the_need_of_RERA\"><\/span>Why the need of RERA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Home buyers were complaining from so long that real estate transactions are lopsided and heavily in the favor of the developers. Just to make the equitable and fair transactions between the seller and the buyers of properties, RERA, and the government&#8217;s model code have been created. Whether it is for the primary or secondary market. It will bring better accountability and transparency. Moreover, make the real estate purchasing simpler. Now,<a href=\"https:\/\/www.legalraasta.com\/blog\/impact-of-rera-on-homebuyers\/\" target=\"_blank\" rel=\"noopener\"> the impact of RERA on homebuyers<\/a> is positive.<\/p>\n<p>It is mandatory under RERA Act for each state and union territory to create its own regulators. The framing of the rules that will govern\u00a0the functioning also comes under RERA Act. Hence, RERA is a form through which Indian real estate gets its first regulator.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"RERA_Impact_on_Real_Estate_in_India\"><\/span><strong>RERA Impact on Real Estate in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>By the following ways, RERA impact on real estate Industry:<\/p>\n<ul>\n<li>Initial backlog<\/li>\n<li>Increased project cost<\/li>\n<li>Tight liquidity<\/li>\n<li>Rise in cost of capital<\/li>\n<li>Consolidation<\/li>\n<li>Increase in project launch time<\/li>\n<\/ul>\n<p>At an initial point, there is a lot of formalities for starting up a new project such as details of each project executed in last 5 years, promoter&#8217;s details, entire details of execution plans etc which are required. With the arrival of RERA in real estate, the resolution of disputes pertaining to home buyers will now be sorted by the specialized forums. The state real estate regulatory authority and the real estate Appellate Tribunal has been established to look after the aggrieved party so that they can not recourse to other consumer forums and civil courts. Th fast-tracking dispute resolution has made it easier to resolve expeditiously along with the degree\u00a0of finality.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"RERA_Impact_insurance_cost_for_construction_and_land_title\"><\/span><strong>RERA Impact insurance cost for construction and land title<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are certain points given below on how <a href=\"https:\/\/www.legalraasta.com\/rera-registration\/\" target=\"_blank\" rel=\"noopener\">Registration of RERA<\/a> impact insurance costs\u00a0 in India:<\/p>\n<ol>\n<li>Now, developers may have to fund the land and approval cost through equity. However, it may cause a shift in equity financing from debt financing prevailing currently.<\/li>\n<li>It may happen that debt funding will not be an ideal route for developers because of the frequent delay in obtaining approvals.<\/li>\n<li>To launch a project now a strong financial and execution capability is required. Although, the development agreement may gain prominence.<\/li>\n<li>Th launching time for the project now may increase as it will take a lot of time to finalize finer details before launching a project.<\/li>\n<li>Before starting project details are required to finalize like a completion of drawings, utility layout etc.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"RERA_Impact_on_Real_Estate_Agents\"><\/span><strong>RERA Impact on Real Estate Agents<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are certain ways on which RERA is leaving its impact on Real Estate agents also. Following are the points:<\/p>\n<ol>\n<li>Real Estate agents need to register their names under the Real Estate Act so that they can facilitate transactions.<\/li>\n<li>In India, the brokers are estimated to be a USD 4 billion industry having estimated 5 lakh to 9 lakhs brokers. It still remains unorganized and unregulated.<\/li>\n<li>All the businessmen who believe in professional and transparent businesses will now able to avail all the benefits as it will bring a lot of accountability. The agents will now have to disclose information to the customer.<\/li>\n<li>Brokers can not give a commitment to provide any amenities which are not written in the documents. In parallel to this, they have to give all information and documents to the homebuyers in India at the time of booking. As a result, RERA is introduced in the industrial system to eliminate unexperienced\/unprofessional\/fly-by-night operators as brokers who usually not follow the guidelines. Ultimately, they will face a heavy penalty or jail both.<\/li>\n<\/ol>\n<p>For further more information regarding<span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Registration of Project under RERA&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:4284,&quot;5&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:[null,2,0]},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;6&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:[null,2,0]},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;7&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:[null,2,0]},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;8&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:[null,2,0]},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;10&quot;:2,&quot;15&quot;:&quot;arial,sans,sans-serif&quot;}\">\u00a0<a href=\"https:\/\/www.legalraasta.com\/blog\/rera-project-registration\/\" target=\"_blank\" rel=\"noopener\">project registration under RERA<\/a>, <a href=\"https:\/\/www.legalraasta.com\/rera-registration\/\" target=\"_blank\" rel=\"noopener\">RERA registration<\/a><\/span>\u00a0you can visit our website: <a href=\"https:\/\/www.legalraasta.com\/\" target=\"_blank\" rel=\"noopener\">Legal Raasta<\/a><\/p>\n<p>Ring us on 8750048585 and send your query at Email: contact@legalraasta.com<\/p>\n<blockquote>\n<p>Related Article:<\/p>\n<p><a href=\"https:\/\/www.legalraasta.com\/blog\/analysis-rera-act-2016\/\" target=\"_blank\" rel=\"noopener\">Analysis of RERA Real Estate(Regulation and Development) Act, 2016<\/a><\/p>\n<p>&nbsp;<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Overview RERA means Real Estates regulations act, 2016 which is passed by the Indian\u00a0government. Although it was passed on 10th March 2016 by Rajya Sabha\u00a0followed by the Lok Sabha on 15 March 2016. But it came into existence on 1 may 2016. There were some sections that have delayed and come into force from 1 may [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":13820,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[164],"tags":[266,264,165,265],"class_list":["post-13816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rera","tag-formation-of-rera","tag-impact-of-rera","tag-rera","tag-rera-impact-on-rela-estate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>RERA Impact on Real Estate in India | Online Learning | Legal Raasta |<\/title>\n<meta name=\"description\" content=\"Home buyers are now getting relax to some extent after the process RERA Registration. 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