RERA at 10: A Decade of Transformation in India's Real Estate Sector

Ten years after the Real Estate (Regulation and Development) Act, 2016 (RERA) was passed, India’s real estate market has undergone a significant transformation. The law, which came into force in 2017, has introduced stronger financial safeguards, greater transparency, and improved accountability, fundamentally reshaping how homebuyers and investors approach property purchases.

A cornerstone of RERA is the requirement for developers to deposit 70% of funds collected from buyers into a designated escrow account. This provision has significantly reduced the risk of capital diversion and aligned fund usage with construction progress. Shekhar G Patel, President of CREDAI, stated, “The law has altered the balance of power between the developer and the purchaser, ensuring financial discipline and accountability.”

D Kishore Reddy, Chairman and Managing Director of Mana Projects, emphasized that RERA has made the sector “more transparent, accountable, and financially secure.” He noted that ring-fencing of funds reduces the risk of project delays and enhances trust in under-construction properties. Sahil Agarwal, CEO of Nimbus Group, added that routing funds through escrow accounts has “significantly curtailed” diversion, contributing to more predictable delivery cycles and improved financial discipline.

RERA has introduced multiple protections for buyers, particularly in under-construction projects, which were historically seen as high risk. These protections include caps on advance payments before signing agreements, standardized sale contracts, and provisions for refunds, interest, or compensation in case of delays. The law also mandates a five-year defect liability period, strengthening post-possession accountability.

Robin Mangla, President of M3M India, highlighted that these measures have “minimized the risk of fund diversion and project delays,” while enhancing overall credibility and dependability for homebuyers. Deepak Sangwan, Chairman of Origen Realty, noted that the Act has “established higher standards of accountability, financial discipline, and transparency,” playing a crucial role in strengthening consumer confidence.

Mandatory project registration and disclosure norms have transformed how buyers evaluate property investments. Developers are required to upload approvals, project timelines, layouts, and progress updates on state RERA portals, creating a verifiable data ecosystem. D Kishore Reddy highlighted that buyers can now verify project registration, approvals, land titles, and developer track records before committing funds, enabling more informed decision-making.

Sahil Agarwal added that these disclosures have improved “information symmetry for buyers,” with many increasingly relying on publicly available filings to assess execution risks and developer credibility. The changes are most visible when compared with conditions a decade ago, when delays, unclear timelines, and weak grievance redressal mechanisms were widespread.

Ram Raheja, Managing Director of S Raheja, said RERA has brought “structure, financial discipline, and transparency,” leading to stronger buyer confidence and a shift towards more organized, credible players. Nikhil Madan, Managing Director of Mahima Group, noted that improved visibility around approvals and construction progress has helped buyers make better decisions, while the escrow framework has safeguarded funds and supported more realistic project timelines.

While experts agree that RERA has structurally reduced risks and improved transparency, they also point to the need for further refinement, particularly in simplifying approval processes and improving execution efficiency. Still, the broader shift is clear. Real estate, once perceived as opaque and unpredictable, is now seen as a more regulated, trackable, and professionally managed asset class.

As Shekhar G Patel noted, while due diligence remains important, the ecosystem today is “far more structured, predictable, and aligned with a more mature, compliance-driven future.”