RERA At 10: Reform, Regulation And The Road Ahead

Ten years later, the law stands as one of the most significant structural reforms in Indian real estate. Mandatory project registration, the requirement to park 70 per cent of buyer funds in escrow accounts, standardised disclosures and grievance redressal mechanisms have collectively altered the way the sector functions. Organised developers have gained prominence, institutional capital has increased and homebuyers today have far greater visibility into project approvals, timelines and execution.

Yet, the reform remains a work in progress. While RERA has undeniably formalised and disciplined the industry, concerns around uneven implementation across states, slow adjudication and a perceived pro-developer tilt continue to persist.

Anand Kumar, Chairman, Real Estate Regulatory Authority (RERA), NCT of Delhi, says the next phase of the law’s evolution depends on collective accountability. “I urge all stakeholders to be honest, to move beyond individual interests and to make this sector more efficient and transparent,” he says, while stressing the need for greater awareness of the Act among buyers and sellers alike.

Bringing Order to a Fragmented Sector

Before RERA, India’s real estate market operated with limited oversight and fragmented practices. According to Ankita Sood, National Director – Research, Knight Frank India, the legislation’s biggest achievement has been the institutionalisation of the sector. “Prior to 2016, the industry was largely fragmented and evolved organically, operating with limited regulatory oversight. The act played a crucial role in formalising the ecosystem, curbing the presence of fly-by-night developers and streamlining the industry through consolidation in favour of larger, more credible players,” she explains.

Markets such as NCR, once synonymous with stalled projects and buyer distress, have witnessed a significant improvement in credibility and project execution after RERA’s implementation. Sood further points out that barring disruptions such as the Covid-19 pandemic and temporary construction restrictions under Graded Response Action Plan (GRAP), the act has materially improved delivery timelines and strengthened buyer sentiment.

This transformation is visible in the numbers as well. Saurabh Bhutani, Senior Director, Research & Consulting, Savills India, informs that project registrations have crossed 1.6 lakh by May 2026, up from 1.4 lakh in January 2025. “Mandatory registration, escrow norms and disclosure requirements have improved financial accountability and reduced fund misuse,” he shares.

Dr. Niranjan Hiranandani, Chairman, NAREDCO, calls RERA one of the most consequential structural reforms for Indian real estate. According to him, the law restored credibility to a sector battling a trust deficit. “A key outcome has been the formalisation of the industry. Organised and compliant developers have gained market share, institutional capital participation has increased, and homebuyers today have far greater visibility on project timelines, approvals and execution,” he highlights.

The Escrow Discipline

Among RERA’s most impactful provisions has been the 70 per cent escrow requirement, which prevents developers from diverting customer advances to unrelated projects. Percy Chowdhry, Executive Director, Rustomjee Group, says the provision fundamentally changed the sector’s capital deployment practices. “Customer advances are ring-fenced for project execution and not diverted. This has played a significant role in restoring homebuyer confidence and improving developer accountability,” he says.

For Manoj Dhanotiya, Founder & CEO, Micro Mitti, too the escrow norm did more than improve governance — it altered who could participate in real estate itself. “The 70% escrow requirement fundamentally changed the capital dynamics of the industry. Developers could no longer operate with fluid fund diversion or informal financing cycles,” he says, adding that the shift opened the sector to structured and accountable capital from entrepreneurs and institutional investors.

Manav Agarwal, Data Chief & Operations Officer, NKlusive, draws a parallel with the securities market regulator. “RERA did for residential property what SEBI did for public markets: it made the industry legible,” he says. According to him, buyers now consider RERA compliance a baseline expectation rather than a selling point, particularly in premium and luxury housing.

Organised Players Gain Ground

A recurring theme across the industry is that RERA has accelerated consolidation in favour of organised and financially disciplined developers. Anand Agarwal, MD, Ceratec Group, says governance and compliance have become key differentiators. “One of the most visible shifts has been the move towards organised, credible developers gaining prominence,” he says.

Dr. Vivek Garg, Founding Director, NVT Quality Lifestyle, believes this transition has naturally pushed buyers toward trusted brands with strong delivery track records.

Similarly, Aakash Agarwal, Managing Director, Krisala Developers, says RERA has encouraged the entry of more responsible and compliant players while elevating overall industry standards.

Ramji Subramaniam, Managing Director, Sowparnika Projects, notes that buyers today have better visibility on approvals, timelines and delivery commitments, helping rebuild trust in the sector.

States Tell Different Stories

Despite the broader gains, experts agree that RERA’s implementation has been inconsistent across India because land and housing remain state subjects. “Maharashtra continues to set the benchmark and remains the most compelling success story,” says Ankita Sood. Maharashtra alone has close to 53,000 registered projects, while states such as West Bengal have recorded only around 167 projects to date.

The disparity reflects varying levels of regulatory efficiency, institutional capacity and political commitment. Sood says there is no conclusive evidence that states have deliberately diluted the act in favour of developers, but enforcement standards differ significantly.

In Uttar Pradesh, however, regulators argue that the framework has strengthened investor confidence. Sanjay R. Bhoosreddy, Chairman, Real Estate Regulatory Authority, Uttar Pradesh, says, “The law has ensured a level playing field for all promoters as well as between promoters and buyers.” He points to rising project approvals as evidence of growing regulatory capacity. “UP RERA was sanctioning around 190 projects per annum till 2023. This increased to 259 projects in 2024, 308 in 2025, and we have already sanctioned 108 projects in the current year,” he updates.

The Persistent Challenges

For all its achievements, RERA continues to face criticism over slow dispute resolution and uneven enforcement. Sri Harsha M, Director, Pushkalam Developers, says the criticism from buyers is valid. “RERA was positioned as a strong consumer protection framework, so naturally buyers expected quicker resolution of disputes and stricter action on delays,” he points out.

Venket Rao, Founder, Intygrat Law and RERA expert, believes implementation gaps at the state level have prevented the law from achieving its full potential. “Delays in dispute resolution and limited enforcement in some regions have led to concerns around effectiveness and a perceived pro-developer tilt,” he says.

Industry leaders also acknowledge that the regulatory architecture must now evolve beyond intent into execution. Percy Chowdhry says regulatory depth must match regulatory design, while Mukul Bansal, Co-Founder & Managing Director, Motiaz, believes enforcement consistency and dispute resolution timelines need further strengthening.

Pawan Sharma, Managing Director, TRG Group, puts in that compliance costs and inconsistent implementation have posed challenges, especially for smaller developers. “Even though the legal framework has helped create a reliable environment for buyers, it has posed additional difficulties for developers,” he states.

Legacy Problems Still Haunt the Sector

Importantly, experts emphasise that many of the sector’s unresolved issues stem from the pre-RERA era. Dr. Hiranandani further observes that nearly 1,500 stalled projects involving around 4.6 lakh homes remain under resolution through mechanisms such as the SWAMIH fund, insolvency proceedings and court-monitored processes. “RERA has curtailed the creation of new stalled projects at scale,” he says, adding that the sector has now shifted from a phase of large-scale stalling to one focused on completion and delivery.

Conciliation forums under RERA have also emerged as useful platforms for amicable dispute resolution, reducing litigation and fostering trust between buyers and developers.

The Next Decade

As the act completes ten years, the consensus across the industry is clear: RERA has fundamentally changed Indian real estate for the better, but the next phase will determine whether it can fully deliver on its original promise.

Darshan Govindaraju, Executive Director, Vaishnavi Group, says the law has strengthened sector credibility and created a more consumer-focused ecosystem. Dr. Mohit Ramsinghani, President & Business Head, VTP Realty, believes it has laid the foundation for a more credible and organised industry.

Going forward, experts are calling for faster adjudication, stronger enforcement, technology-led monitoring and greater uniformity across states. “RERA has set the foundation right,” says Percy Chowdhry, adding, “The next decade will be about strengthening enforcement, harmonising implementation across states, and leveraging data-led oversight.”

Ten years after its introduction, RERA has succeeded in transforming real estate from a loosely regulated business into a more structured and accountable industry. The trust deficit that once defined the sector has narrowed considerably. But for millions of Indian homebuyers, the true test of the law will lie not merely in regulation, but in how quickly and consistently justice is delivered.