India’s real estate sector has long faced issues around transparency, delayed projects, and low buyer confidence. But regulatory reforms over the past few years are gradually reshaping the industry. Chief among these reforms is the introduction of the Real Estate (Regulation and Development) Act, or RERA, which came into effect in 2016.
It marked a turning point by creating a more structured and accountable framework for developers and boosting consumer trust.
RERA was designed to enhance transparency, protect buyer interests, and ensure timely project delivery. It mandates project registration, disclosure of project details, and regular updates to homebuyers. As of early 2025, nearly all states and union territories have operational RERA authorities, helping streamline compliance and dispute resolution.
The Role of Industry Bodies Organizations like CREDAI and NAREDCO have been at the forefront of supporting and adapting to these changes. They are actively engaging with regulatory authorities to ensure that implementation is practical and fair. These bodies also serve as a voice for developers, advocating for amendments that balance regulation with ease of doing business.
CREDAI, for example, offers RERA training and legal support to its members, helping developers comply without unnecessary delays. NAREDCO has been instrumental in offering policy suggestions to address on-ground challenges in adopting RERA across states.
Beyond RERA: The Expanding Regulatory Landscape While RERA is the cornerstone, other regulatory changes are also impacting the construction and housing sectors. The implementation of GST brought clarity on tax structures but also required adjustments in pricing and accounting. Environmental clearances, land acquisition policies, and urban development codes are also becoming more streamlined.
Additionally, digital transformation in compliance has helped cut down red tape. Many states have shifted to online project approvals and virtual hearings for disputes, which has improved efficiency and reduced room for malpractice.
Developer Perspective: Challenges and Compliance For developers, adapting to this regulatory overhaul hasn’t been without friction. Increased documentation, compliance requirements, and penalties for delays require robust legal and operational systems. But over time, the benefits are outweighing the hurdles: developers who adhere to RERA guidelines are seeing increased buyer interest and better investor confidence.
There is also a growing culture of self-regulation. Developers are voluntarily disclosing project timelines, financial data, and approval statuses — even when not mandated — to stay competitive in a more transparent marketplace.
The Way Forward While regulation has added layers of accountability, there’s a continued need for balance. Over-regulation can slow down growth, especially for small and mid-sized developers. This is where CREDAI and NAREDCO play a critical role in maintaining dialogue between the industry and the government.
In a sector that contributes over 7% to India’s GDP and is expected to touch USD 1 trillion by 2030, regulation is key to sustainable growth. The focus must now shift to consistent enforcement, digitization of approvals, and reducing policy ambiguity.
