AMENDMENTS AND FUTURE TRENDS IN RERA: WHAT TO WATCH FOR
IN 2025 AND BEYONDÂ
By Dr Harshul Savla (MRICS) with Inputs from Amaanuddin Siddique
RERA, the Real Estate (Regulation and Development) Act, 2016, has been pivotal in reshaping the Indian real estate sector. It has emerged as a landmark in the country’s real estate landscape by enhancing transparency, fostering accountability, and empowering consumers. The past two years, from 2023 to 2024, have seen numerous amendments aimed at refining its operations, ensuring greater compliance, and addressing emerging challenges in the industry. As we look towards 2025 and beyond, RERA is poised to evolve further, introducing new provisions and trends that will shape the future of real estate development, project management, and consumer rights.
Overview of Recent RERA Amendments
The amendments introduced in the past two years were crucial in enhancing RERA’s effectiveness in regulating the real estate market. A standout change has been the increased scrutiny of project registrations. Maharashtra, for instance, enforced a rule requiring developers to confirm that no duplicate registrations exist on the same land parcel. This measure was designed to eliminate confusion and ensure that land is not misused for multiple conflicting projects. Additionally, developers seeking project extensions are now subject to more stringent checks. These amendments include fines for unnecessary delays and more robust compensation mechanisms for buyers affected by these delays, ensuring developers remain accountable and projects are completed within a reasonable timeframe.
Along with these, the push for affordable housing saw greater attention. States like Maharashtra have taken steps to use unused land, including salt pan areas, for affordable housing developments, providing housing solutions for economically weaker sections. Technological integration has also risen rapidly, with many states implementing digital platforms that simplify registration and grievance resolution processes. These initiatives have improved RERA’s overall transparency and efficiency, making the regulatory environment more accessible and user-friendly. Noteworthy also was RERA’s ‘amenities disclosure’ ruling, which mandates that developers include a detailed list of amenities in their projects’ sale agreements. This has improved the clarity around what buyers can expect, ensuring that developers’ promises are backed by legal accountability. Another significant change stipulated that developers have three years from project initiation to complete possession, a timeline set to help address project delays and prevent buyer exploitation.
Upcoming Trends and Possible Amendments in 2025 and Beyond
Several trends and amendments are expected to reshape RERA’s framework, leading to more uniformity, accountability, and sustainability in the real estate sector. One of the anticipated changes is the standardisation of RERA regulations across states. Different states interpret and implement RERA provisions in varied ways, leading to confusion and inconsistency. In the coming years, there may be a push to create a more uniform set of guidelines that apply across the country, making it easier for developers operating in multiple states. Additionally, sustainability is expected to become a core focus of future amendments. The growing awareness of climate change and environmental responsibility pushes the real estate sector toward greener practices. Developers may soon be required to adhere to sustainability benchmarks, such as energy efficiency, waste management, and eco-friendly materials. This could be accompanied by financial incentives like tax rebates or reduced loan interest rates for developers who integrate these practices into their projects.
Another likely development is the imposition of stricter penalties for non-compliance. The government is expected to ramp up efforts to penalise developers who fail to meet deadlines or engage in unethical practices, reinforcing RERA’s goal of ensuring accountability and protecting consumer interests.
Impact on Developers and Builders
The evolving regulatory landscape under RERA presents challenges and opportunities for developers and builders. One of the most immediate effects of the recent amendments is the stricter enforcement of project timelines. Developers now face higher penalties for delays, pushing them to adopt more efficient project management practices. This shift may drive the adoption of advanced construction technologies, including prefabrication and modular building techniques, to reduce delays and meet deadlines.
While compliance with RERA’s more stringent provisions may increase costs, particularly regarding sustainability measures, long-term benefits may offset these costs. Green-certified buildings are becoming increasingly popular with homebuyers, who are more willing to pay a premium for eco-friendly homes. Furthermore, these developments could attract more investment, especially in the context of international sustainability standards that investors now prioritise. Developers must also invest in technology to meet these evolving regulations. Digital tools that track project progress, manage compliance, and facilitate buyer communication will become essential. As the industry moves towards greater digitalisation, developers who embrace these technologies will have a competitive advantage.
Implications for Home Buyers and Investors
The amendments to RERA provide more security and protection for homebuyers. Introducing stronger buyer protections, such as more robust grievance redress mechanisms and higher compensation for delays, is a positive shift. These changes address the long-standing concerns of homebuyers who often face delays or discrepancies in promised project specifications. With the new regulations, consumers can expect better accountability from developers, reducing the risk of investing in delayed or underperforming projects. Investors, too, stand to benefit from these changes. The greater transparency in project registrations and completion timelines will provide investors with more reliable information, helping them make more informed decisions. The focus on green development will likely drive demand for sustainable properties, offering investors a new avenue for returns. However, with sustainability mandates and higher costs associated with compliance, developers may pass some of these costs on to consumers, making it essential for investors to factor these changes into their investment strategies.
State-Specific Variations in RERA Regulations
While RERA is a national law, its implementation varies from state to state, resulting in some inconsistencies. State-specific variations in RERA regulations are a testament to the federal nature of India’s governance, allowing each state to adopt the Act’s provisions based on local needs and real estate dynamics. With its proactive Maha RERA authority, Maharashtra has been at the forefront, implementing stringent digital platforms and introducing measures like automated project updates and real-time grievance redressal mechanisms. For instance, MAHA RERA recently launched a feature enabling buyers to track project progress digitally, ensuring greater transparency.
On the other hand, states like Uttar Pradesh and Haryana have focused more on addressing legacy issues, such as stalled projects. Uttar Pradesh’s UP-RERA played a significant role in reviving delayed projects by enforcing stricter compliance timelines and imposing financial penalties on non-compliant developers. Haryana’s HRERA, meanwhile, introduced measures to safeguard homebuyers by mandating escrow accounts for all ongoing projects, ensuring funds are used solely for the intended developments. These regional adaptations often result in distinct operational dynamics.
For example, Goa has relaxed norms for smaller projects under RERA, exempting those under 500 sq mt and acknowledging the state’s focus on boutique real estate developments. Similarly, Kerala has prioritised affordable housing by offering incentives under its state-level RERA, aligning with local housing needs. Such state-specific variations highlight the flexibility of RERA while also emphasising the need for a more harmonised framework to minimise ambiguities for developers operating across multiple jurisdictions. Over time, we will see a convergence in state-specific RERA regulations as more states adopt the best practices from regions with more developed frameworks. This standardisation will make it easier for developers to operate across state lines and reduce current regulatory complexity.
Sustainability and Green Building Regulations
Sustainability is set to become a central tenet of future RERA regulations. As awareness of climate change and environmental sustainability increases, the real estate sector is pressured to adopt green practices. Future amendments to RERA are expected to introduce mandatory sustainability benchmarks for new developments. These could include energy-efficient designs, the use of renewable energy, water conservation measures, and waste management protocols.
In India, green building certifications such as IGBC (Indian Green Building Council) and GRIHA (Green Rating for Integrated Habitat Assessment) are central to fostering sustainable development. Certified projects emphasise efficient resource use, reduced carbon footprints, and enhanced occupant well-being. For instance, Mahindra Eden in Bangalore stands out as India’s first net-zero energy residential project, using 100 percent renewable energy and integrating biodiversity-friendly practices. Similarly, Brigade Opus in Bengaluru features India’s largest bio-wall, contributing to better air quality and thermal regulation. The Shapoorji Pallonji Parkwest project in Bengaluru incorporates extensive rainwater collection systems and preserves existing trees to minimise environmental disruption.
At a macro level, India has committed to cutting carbon emissions by 1 billion tonnes by 2030 and achieving net-zero emissions by 2070. This commitment is supported by advancements in energy efficiency and renewable energy use in the real estate sector, which currently contributes 30-40 percent of global carbon emissions.
The Role of Technology in RERA Compliance
Technology is revolutionising RERA compliance, making processes more efficient, transparent, and accessible. Digital platforms like MAHA RERA’s comprehensive portal enable developers and homebuyers to access real-time project updates, file grievances, and monitor compliance seamlessly.
MAHA RERA has also pioneered by employing artificial intelligence (AI) to detect advertisements that lack mandatory registration numbers or QR codes, ensuring compliance with advertising norms. Furthermore, MAHA RERA is developing an AI-powered grading system for real estate projects, which will assess them based on factors such as timeliness, quality, and adherence to regulations, offering buyers valuable insights and improving developer accountability.
Blockchain technology is being piloted for property registrations in states like Telangana to ensure tamper-proof records and prevent fraud. These initiatives enhance transparency and trust by creating immutable digital property ledgers.
Additionally, states like Karnataka have introduced integrated systems that automate compliance checks, expediting project approvals. Geographic Information Systems (GIS) are utilised to analyse land-use data, ensuring that developments conform to zoning regulations and enable developers to align projects with local policies.
These advancements demonstrate how technology streamlines compliance and fosters trust and innovation within the real estate sector by addressing long-standing issues such as delays, fraud, and lack of transparency. The continued digitalisation of the real estate sector will make it easier for developers to comply with RERA regulations, streamline communication with consumers, and improve overall efficiency.
Conclusion
As RERA continues to evolve, the act will profoundly impact India’s real estate sector. The amendments made in the previous years have paved the way for a more transparent, accountable, and sustainable future, while upcoming trends point toward increased digitalisation, stricter compliance, and a stronger focus on sustainability. Developers, investors, and homebuyers must stay informed and adapt to these changes to navigate the increasingly complex landscape. The future of RERA promises a more robust regulatory framework that will ensure the growth and stability of the real estate industry, benefiting all stakeholders in the long term.
