RERA Ensures Fair Pricing and Investor Confidence in Indian Real Estate
The Real Estate (Regulations and Development) Act, 2016, has transformed India’s housing market by curbing speculative pricing and restoring consumer trust, according to a report by Knight Frank India and NAREDCO.
ReraReal EstateHousing MarketTransparencyInvestor ConfidenceReal EstateAug 29, 2025
The implementation of RERA has helped shift the housing sector away from speculative cycles, forcing developers to adopt compliance, transparency, and delivery-focused practices. For consumers, this has resulted in fairer pricing and renewed confidence in housing as a stable asset class. The report adds that RERA has played a crucial role in ensuring that the housing market operates in a more regulated and transparent manner.
Alongside improved affordability, investor confidence in Indian real estate has climbed steadily in the post-RERA era. The report highlights that cumulative private equity inflows surged to $26 billion between 2017 and 2020, compared to just $17.5 billion during 2011–2016. This influx of institutional capital reflects greater trust in the sector’s regulatory environment, signaling the success of RERA in building a more credible investment landscape.
Beyond prices and investments, RERA’s scale of implementation underlines its importance as the backbone of India’s housing market. By mid-2025, nearly 1.5 lakh projects and 1 lakh agents had been registered under the Act, while 1.5 lakh consumer complaints were successfully resolved. The report adds that these figures demonstrate the Act’s effectiveness in addressing consumer concerns and ensuring accountability.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, said, “RERA has been one of the most impactful reforms for India’s housing market in recent times, making the sector more transparent and instilling accountability. Transparency and delivery discipline have given consumers the confidence to return to the market, while institutional investors are once again viewing residential real estate as a credible long-term investment story. This renewed balance in India’s housing market will go a long way in achieving sustainable growth.”
Frequently Asked Questions
What is RERA?
RERA stands for the Real Estate (Regulations and Development) Act, 2016, which is a regulatory framework aimed at bringing transparency, accountability, and consumer protection to the real estate sector in India.
How has RERA impacted housing prices?
RERA has moderated runaway housing prices by curbing speculative pricing and ensuring that developers adhere to compliance and transparency, leading to fairer pricing for consumers.
What is the significance of RERA for investors?
RERA has restored investor confidence in the Indian real estate market by creating a more regulated and transparent environment, which has attracted significant institutional capital to the sector.
How many projects and agents have been registered under RERA by mid-2025?
By mid-2025, nearly 1.5 lakh projects and 1 lakh agents had been registered under the RERA, reflecting the Act's widespread implementation and impact.
What does the future hold for the Indian housing market post-RERA?
The future of the Indian housing market post-RERA is promising, with expected sustainable growth driven by increased transparency, accountability, and renewed consumer and investor confidence.
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