From Hype to Trust: India’s Real Estate Sector Embraces Transparency

For decades, India’s real estate sector grappled with a deep-rooted trust deficit. Project delays, opaque practices, and unresolved consumer grievances shaped the image of an industry long dogged by credibility concerns.

Glamorous launches and luxury towers did little to disguise structural inefficiencies that left homebuyers anxious and investors wary. In the absence of transparency and accountability, real estate became synonymous with uncertainty—an investment where faith often outweighed facts.

That landscape is now undergoing a visible shift. A new generation of developers, alongside established names, is working systematically to rebuild public confidence through transparency, compliance, governance, and timely execution. The sector’s operating philosophy has moved from brand perception to performance-led trust, reshaping how homes are sold, financed, and delivered.

“Over the past three decades, Indian real estate has evolved from being largely unregulated and perception-driven to a sector anchored in transparency, accountability, and governance,” said Niranjan Hiranandani, chairman of the Hiranandani Group and the developers’ body NAREDCO. Credibility, once built on legacy and name recognition, is now judged on delivery consistency, construction quality, and customer experience, the veteran developer said. He added, “Developers who have not just chased valuations but created enduring value have emerged as true institutions of trust. Trust is not inherited; it is earned through purpose, performance, and perseverance.”

The turning point arrived with the Real Estate (Regulation and Development) Act, 2016 (RERA), which forced a transition from freewheeling expansion to structured accountability. With its implementation in 2017, developers were required to commit to timelines, ring-fence project funds through escrow, and disclose real-time construction updates—resetting expectations across the value chain.

“The business environment for Indian real estate has transformed dramatically in recent years,” said Shishir Baijal, CMD of Knight Frank India. “Regulatory measures such as RERA, the Benami Transactions (Prohibition) Amendment Act, and stronger anti-money laundering frameworks have ushered in unprecedented levels of accountability and transparency. Alongside this, homebuyers have become far more discerning and informed.”

The entry of institutional investors—private equity funds, sovereign investors, and global institutions—added multi-layered financial discipline, governance scrutiny, and milestone-linked fund deployment. This mix of evolved consumer behavior and institutional oversight, Baijal noted, has catalyzed a cultural shift. “Today, trust is no longer secured through brand visibility alone; it is earned through consistent performance, transparent conduct, and long-term commitment.”

As fundamentals strengthened, homebuyers gravitated towards developers with strong track records, balance-sheet discipline, and clean governance. Reputation now weighs as heavily as location and price. “Homebuyers are prioritizing trust, on-time delivery, and governance standards more than ever before,” said KT Jithendran, CEO of Birla Estates. “Strong legacy brands are increasingly able to command premium pricing and witness faster sales velocity because buyers associate them with lower risk and higher long-term value.”

Brand power has become transactional. Buyers are willing to pay more for peace of mind, and projects backed by institutional balance sheets and proven delivery milestones are outperforming on absorption and pricing. Developers who once competed on brochures and celebrity endorsements are now competing on execution capability, data-backed transparency, and post-sales service.

“The hallmark of a trustworthy developer is not the top-line revenue they generate but the bottom line of trust they sustain,” Hiranandani said. “Those who honor commitments through cyclical phases earn not only customer loyalty but industry respect.”

Alongside regulatory reforms, digital transformation is playing a central role in credibility creation. Developers are investing in project management dashboards, real-time construction trackers, CRM systems, drone monitoring, and automated communication tools to strengthen transparency. “Digital tools are transforming the real estate customer journey by delivering seamless, transparent, and responsive experiences,” said Onkar Shetye, executive director of Aurum PropTech, which serves about 1,000 real estate enterprises.

CRM platforms ensure every interaction with a homebuyer is recorded and addressed, preventing communication lapses that once strained relationships. Automated updates keep customers informed on milestones, approvals, and payments. Next-generation technologies such as AI-enabled support, virtual tours, and digital documentation are removing opacity from the purchase cycle. “These innovations are more than just technologies; they are the foundation of building trusted relationships through real-time information, immersive experiences, and transparency,” Shetye said.

Execution has emerged as the sector’s most powerful credibility driver. Developers now recognize that the most influential marketing tool is timely handover and hassle-free possession. Positive referrals from satisfied buyers increasingly outperform advertising spends. This shift has accelerated the use of construction technologies, modular systems, and automation tools that reduce delays and ensure quality consistency. Homebuyers say branding alone no longer influences purchase decisions—they want evidence, not promises.

“Mere creation of a brand based on perception will not help. It needs to be backed by real substance—actual performance, transparent data, and a proven track record,” said Abhay Upadhyay, president of homebuyers’ body the Forum for People’s Collective Efforts (FPCE). “Homebuyers need clear timelines, delivery history, financial stability, and evidence that the developer can execute what it promises.”

Large developers have institutionalized structured delivery frameworks, ensuring predictable timelines even across multi-phase developments. The rise of REITs (Real Estate Investment Trusts) and quarterly disclosures has added public scrutiny resembling that of listed sectors, reinforcing data-backed trust.

The developer–homebuyer relationship no longer ends at possession. Resident satisfaction, service standards, and amenity upkeep are now active decision-making criteria. Community management platforms and structured post-delivery services are emerging as differentiators. “At Birla Estates, trust has always been foundational, and we have embedded customer feedback deeply into the product design and delivery journey,” said Jithendran. Digitized buying journeys, transparent documentation, structured communication, and long-term community engagement, he said, have helped the company maintain strong Net Promoter Scores.

Legacy brands, he added, view reputation not as a marketing asset but as a responsibility. “Customers expect reliability, governance, and quality when they buy into a legacy brand. That expectation drives us to consistently raise the bar.”

Consolidation is reshaping the market structure. The top 10 developers in major metro markets now control over half of the new supply—a stark change from the earlier fragmented landscape of hundreds of small local builders. Institutional capital has overwhelmingly gravitated to financially strong platforms, tightening liquidity for less reliable players and effectively weeding out developers lacking capability or commitment.

Baijal said the real test will come during the next slowdown. “We hope the five-year up-cycle has helped institutionalize the sector and fortified its base for any impending downturn.”

Despite the progress, the sector still faces legacy delays, protracted litigation, land consolidation hurdles, and uneven regulatory enforcement across states. Many smaller developers struggle to maintain compliance without deep financial reserves. Jithendran said deeper reforms are essential—uniform regulation, stricter enforcement, wider adoption of transparency technologies, stronger ESG (Environment, Social, and Governance) benchmarks, and a fully customer-centric culture. “Honest communication, responsible commitments, and long-term accountability will define the next era of Indian real estate.”

From opacity to openness, from speculation to structure, the sector is rewriting its trust contract with both buyers and investors. What once depended on marketing optics is now driven by measurable performance, transparent reporting, and technology-enabled execution. Developers increasingly understand that trust is not an add-on—it is the product itself. And those who build credibility brick by brick will shape the sector’s next chapter.