Context:
The central government recently launched a Unified Real Estate Regulatory Authority (RERA) Portal, a significant reform aimed at transforming the real estate industry across India.
Background:
The Real Estate (Regulation and Development) Act, 2016 was enacted to bring transparency, accountability, and efficiency to the real estate sector, a sector historically plagued by delays, lack of information, and consumer grievances.
· However, since real estate is regulated at the state level, there were variations in implementation and access to information across states and union territories.
About Unified RERA Portal:
The new portal integrates data from all states and UTs, allowing them to share best practices, monitor project progress in real-time, and provide a centralized platform for buyers and regulators.
It helps in tracking real estate projects, registering complaints, and enforcing timely delivery, thus safeguarding the interests of homebuyers.
Benefits of the portal:
1. Promotes Digital Governance: The unified portal aligns with the Digital India initiative by leveraging technology to improve transparency and citizen services.
2. Enhances Consumer Protection: By addressing grievances efficiently, it strengthens the rights of homebuyers.
3. Improves Regulatory Framework: Facilitates uniform implementation of RERA, overcoming previous challenges due to state-wise variations.
4. Boosts Economic Development: A transparent real estate sector attracts investment, fuels job creation, and contributes to urban development.
About Real Estate (Regulation and Development) Act, 2016:
The Real Estate (Regulation and Development) Act, 2016 (RERA) regulates India’s real estate sector to ensure transparency, efficiency, and consumer protection.
· It mandates registration of all real estate projects with state RERA authorities before sales begin and requires at least 70% of collected funds to be used exclusively for project expenses.
· The Act establishes fast dispute resolution mechanisms and an appellate tribunal.
· Applicable to residential and commercial properties, RERA reduces fraud and project delays, promotes accountability, and protects homebuyers’ interests.
· Each state has its own RERA authority to enforce the law, while some renovation or redevelopment projects are exempt.
About real estate sector:
The real estate sector is a cornerstone of the Indian economy, contributing around 13% to the GDP by 2025 and expected to reach $1 trillion by 2030.
· It is the one of the-largest employment generator, supporting millions directly and indirectly through over 200 allied industries like cement and steel.
· The sector plays a crucial role in urbanization, catering to India’s growing urban population, projected to hit 600 million by 2030. Real estate investments have a multiplier effect, driving demand across industries and jobs.
· Additionally, it is a major source of government revenue and attracts significant Foreign Direct Investment (FDI) through supportive policies.
Conclusion:
The launch of the Unified RERA Portal marks a significant step towards enhancing transparency and accountability in India's real estate sector. By providing a single nationwide platform for stakeholders, the portal aims to empower homebuyers, promote best practices, and support policy formulation.
