With the entry into force of the Real Estate Regulation and Development Act in 2016, there has been a record increase in project registrations during the two years from November 2021 to November 2023.
The RERA Act saw a 63 per cent increase in project registrations over the two years, which peaked at 1.16 lakh in November 2023, according to data analyzed by real estate consultancy Anarock. By comparison, the number of registered projects in November 2021 was 71,307.
To curb rising real estate prices and safeguard the interests of home buyers, the government has brought in the RERA of Real Estate (Regulation and Development) Act, 2016, which regulates and monitors the real estate sector in all states.
The RERA Act makes it mandatory to register a project with RERA for launching a residential or commercial real estate project with a land area of more than 500 square meters. Registration with RERA helps in creating transparency in the implementation of the launched projects.
With 36% of all projects registered so far under RERA across 34 states and colleges, Maharashtra continues to lead in project registrations. Tamil Nadu follows with a share of 16%, followed by Telangana and Gujarat, which have a share of around 7% and 11% respectively.
Since its introduction, RERA has continued to gain traction, especially in the inter-state and inter-university handling of consumer complaints. According to data from the Ministry of Housing and Urban Affairs, as of November 28, 2023, relevant state authorities had resolved up to 1,16,300 cases.
“Resolving the concerns of homebuyers is one of the key functions of the Real Estate (Regulation and Development) Act, which it has demonstrably fulfilled,” said Anuj Puri, Chairman, ANAROCK Group. “More than 1.16 lakh consumer complaints have been resolved by the RERA bodies of the various state and union territories. In the last two years, the pace of registrations of projects and real estate agents has not slowed down.”
Of this, 38% of cases (about 44,602 complaints) were resolved in Uttar Pradesh alone, followed by Haryana with 20,604 cases (18%) and Maharashtra with 15,423 cases (13%). The three states together accounted for nearly 69% of the total cases disposed of under RERA in the country.
“In fact, project registrations have increased dramatically by 63% in the last two years. Moreover, RERA authorities of various states and colleges have resolved over 37,397 consumer complaints during this period,” Puri said. “Uttar Pradesh has resolved the highest number of cases. Considering how badly Noida and Greater Noida in UP have been affected by unscrupulous players, this is remarkable.
Registrations for projects and brokers under RERA are also rising steadily. As of November 28, 2023, nearly 1,16,117 projects and 82,755 real estate agents were registered under RERA nationwide. About 71,307 projects and 56,177 real estate agents were registered over the same period in 2021. This represents a growth of 63% and 47%, respectively, over the past two years.
Almost all states/UTs have notified rules under RERA. The northeastern state of Nagaland is still in the process of announcing its rules, while West Bengal – which previously passed its legislation – was challenged by MoHUA on the matter in the Supreme Court.
In March 2022, the apex court quashed the West Bengal Housing Industry Regulation Act, 2017 (WBHIRA) saying it overlapped with RERA, which had been passed as law in Parliament.
Thirty-two states/UTs have established Real Estate Regulatory Authorities since implementation, and of those, at least five are interim. Ladakh, Meghalaya, Nagaland and Sikkim are yet to establish real estate regulatory bodies.
Twenty-eight states/UTs have set up a Real Estate Appellate Tribunal for hearing consumer complaints, including four on an interim basis. Arunachal Pradesh, Jammu and Kashmir, Ladakh, Meghalaya, Mizoram, Nagaland, West Bengal and Sikkim are still in the process of establishing theirs.
Regulatory authorities of 30 states/UTs have made their websites operational under the RERA provisions. Arunachal Pradesh and Manipur are currently becoming operational.
26 states/UTs have appointed adjudicators while 10 states/UTs i.e. Arunachal Pradesh, Bihar, Manipur, Meghalaya, Nagaland, Sikkim, Uttarakhand, West Bengal, Jammu and Kashmir, Ladakh are yet to do so.
First print: December 22, 2023 | 5:31 PM IST