In recent years, the real estate sector in India has witnessed a transformative shift driven by the strengthening of consumer rights. This evolution empowers buyers and creates a more transparent and healthy environment for developers, ultimately contributing to the industry’s sustainable growth.
Empowering Buyers
Consumer rights, now a cornerstone of the real estate market, have empowered buyers with the confidence and assurance they need to make well-informed decisions. The Real Estate (Regulation and Development) Act, 2016 (RERA), a pivotal legislation, enforces transparency, accountability, and on-time project delivery, ensuring buyers are thoroughly informed and shielded from misconduct, providing security and confidence in their investments.
Buyers now have unrestricted access to detailed project information, encompassing approvals, timelines, and financial disclosures. This transparency is instrumental in fostering trust and equips buyers to make decisions based on comprehensive data. Furthermore, establishing RERA authorities in different states serves as a platform for swift and efficient resolution of grievances and makes buyers feel supported and heard in case of any issues.
Supporting Developers
While primarily aimed at protecting buyers, consumer rights significantly benefit developers. By promoting transparency and accountability, these regulations help build a positive reputation for developers who adhere to the guidelines. This, in turn, attracts more buyers and investors, fostering a healthy competitive environment.
Developers who comply with RERA and other consumer protection laws are perceived as trustworthy and reliable, which enhances their market credibility. Moreover, the emphasis on timely project completion and quality standards ensures that developers maintain high construction standards, reducing the risk of disputes and enhancing customer satisfaction.
Driving Industry Growth
The real estate sector’s growth relies on the symbiotic connection between knowledgeable buyers and ethical developers. Protecting consumer rights creates a level playing field that rewards ethical conduct and punishes unethical behavior, making developers feel that their ethical conduct is being recognized and rewarded.
The heightened transparency and responsibility in India’s real estate sector attract foreign investments, as investors have confidence in a well-regulated and stable market. This infusion of capital significantly contributes to the overall development of infrastructure and housing, meeting the increasing demand in urban and semi-urban areas. Moreover, foreign investments bring in new technologies and best practices, further enhancing the industry’s growth and development.
According to Mordor Intelligence data, the Indian real estate industry is projected to be USD 0.33 trillion in 2024, expected to reach USD 1.04 trillion by 2029, with a projected growth rate of 25.60% during the forecast period. Further, the real estate sector is the second largest job creator after agriculture, with the potential to create millions of jobs in the coming years, thereby significantly contributing to the country’s economic growth.
For buyers and developers, strengthening consumer rights in India’s real estate sector is crucial. It provides buyers with the necessary information and protection while assisting developers in establishing a reputable and dependable market presence. As a result, the industry is experiencing sustainable growth driven by transparency, accountability, and mutual trust.