RERA, (Real Estate (Regulation & Development) Act, 2016 is first set of the organised

legal system to streamline the real estate industry. RERA Laws seek to bring
transparency and accountability that would protect the interest of home buyers and regain
the lost faith in real estate industry.

RERA History
The Act of RERA (The Real Estate (Regulation and Development) Act, 2016 was passed
in March, 2016 and made effective from 1st May, 2016. Few of the section of said act was
notified to be effective from 01/05/2016. The whole act was commenced from 01/05/2017.

The said Act has mandated for every State/UT to

– Make RERA rules for the particular State within 6 months of the effective date –
The RERA Rules shall prescribe for RERA registration, RERA registration process,
RERA registration fees, RERA compliances for developers, RERA compliances for
agents and RERA grievance redressal process to implement the RERA Act.

– Notify RERA authority for particular State within 1 year of effective date – RERA
authority act as RERA registration authority. It shall also be first appellate authority for
RERA grievance redressal

– Constitute RERA tribunal as appellate authority for respective State within 1 year
of the effective date – RERA Tribunal shall be appellate authority for RERA grievances.

RERA Objective
The prominent object of the RERA is to bring transparency and generate faith &
confidence of real estate buyers. Some of the objectives of RERA are –

 To establishing a Real Estate Regulatory Authority (RERA) for the sole purpose of
regulation in real estate.
 To provide transparency and grievance system in Real Estate Sector
 To protect of right of buyers
 To establish the authenticity of promoters, real estate project and real estate agents
 To curb on unnecessary delay in approval of project, delivery of project etc
 To Set up appellate System for grievance redressal system
 To bring confidence in real estate sector
 To prescribe the penalties for defaulters

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experience in real estate sector. Here we provide complete end to end RERA consulting.
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 Applicability of RERA and its importance

INTRODUCTION

Currently, more and more researches are being conducted in relation to the promotion

of the sustainable development in several areas to allievate the relevant problem. Since

‘sustainability’ and ‘sustainable development’ encompases economic security and

growth, environmental quality and integrity, social cohesion and quality of life,

empowerment and governance, hence, the role of the real estate sector in the promotion

of the sustainable development become predominant, because it involves one of the

basic pursuit of life, viz, roti, kapda and makan and thus has major impact on the state

of socio-economic status. Since Real estate is inseparable from human economy in its

social form, and all plans of social reform must be directed toward an appropriate

distribution of economic goods including housing and infrastructure. There exists a

huge demand for housing and infrastructure in the Indian scene. For achieving the goal

of ‘Housing for All’, we need to build millions of houses both in urban and rural areas.

The urban housing shortage is estimated at 18.78 million in 2015. Total rural housing

shortage in India stood at 14.8 million as of 2015 and is expected to grow to 48.8

million by the end of 2017. Demand for residential space in Low Income Group category

remained 40% whereas supply was much behind at 22% i.e. a demand supply gap of

18%. Similarly, demand-supply gap in Middle Income Group and High Income Group

categories stood at 20% and 2% respectively. The housing sector alone contributes 5-
6 per cent to the country's Gross Domestic Product (GDP).

Real estate, as a general term, describes the built environment, which plays a vital role

in every aspect of an economy, society and environment. Businesses and society can't

function without the services of commercial property, including the provision of offices,

shops, factories, malls and many other forms of real estate. The commercial property

sector delivers and manages the infrastructure needed for entrepreneurship to thrive. It

is therefore a fundamental source of employment and economic growth, and a major

contributor in addressing two critical challenges of our time: providing liveable and

functioning cities for a growing urban population and reducing the environmental footprint

of the built environment.

The real estate has a catalytic role in fulfilling the demand for housing for the various

socio-economic classes. Equally important is need to provide the back up infrastructure

covering utility services such as water supply, sewerage, drainage, roads and transport

requirements as well as social infrastructure like schools, health and recreation facilities,

commercial infrastructure like markets/malls, office complexes, technology parks etc.

The cumulative effect of these demands places the onus on the real estate and

construction sector, providing an excellent opportunity for conferring social benefits

which could act as a major vehicle for kick-starting the economy. IBEF Report (2016) estimates that
India’s real estate sector’s market size is expected to

grow upto USD180 billion by 2020 from USD93.8 billion in 2014, that reflects an increase

of 1.92 times. It is further estimated to be worth USD853 billion by 2028. Further, real

estate sector is the fourth largest sector in terms of FDI inflows which is estimated to

grow to USD25 billion by FY22. The number of Indians living in urban areas are increasing

rapidly and are expected to be about 600 million in 2031.

The Indian economy experienced robust growth in the past decade and is expected to

be one of the fastest growing economies in the coming years. It has also been estimated

that real estate contribution to India’s GDP is estimated to increase to about 13 per cent

by 2028. Increasing share of real estate in the GDP would be supported by increasing

industrial activity, improving income level, and urbanisation. The growth of real estate
sector is not only driven by growing economy but policy support from government as

well. For instance, Government plans to build 100 smart cities which would reduce the

migration of people to metro and other developed cities. Government initiatives such

as various urban development policies and programmes (e.g., JNNURM, Land Acquisition

Act. Affordable Housing, Ease in housing finances, Widening the scope of real estate

market, change in FDI Regulation) are expected to contribute to enhanced urbanisation.

Urbanisation and growing household incomes are driving demand for residential real

estate and growth in the retail sector. India’s urban population as a percentage of total

population was around 32.4 per cent in 2016 and is expected to rise to 40 per cent by

2030. Industry players, including realtors and property analysts, are rooting for the

creation of "Special Residential Zones" (SRZs), along the lines of SEZs.