TOP 6 Advantages and Disadvantages of RERA in 2025

The Real Estate Regulation Act, popularly known as RERA, came into effect in 2016 to bring transparency. accountability, and fairness in the real estate sector. It was a landmark reform that changed how property transactions are carried out in India.

While RERA has benefited both homebuyers and developers in many ways, it also comes with a few challenges. Let's look at both sides.

 Advantages of RERA
 1. Transparency in Projects
 Builders must register their project with RERA before selling. Details like layout, approvals, land status, and timeline are disclosed, reducing misinformation. 

 2. Timely Delivery of Homes
 Builders are legally bound to complete projects on time. If they delay, they must compensate buyers, ensuring trust and accountability. 

 3. Protection of Buyer's Money
 70% of the buyer's funds must be kept in a separate escrow account, preventing misuse of money on other projects.

 4. Standardization of Carpet Area
 Earlier, builders used different methods to calculate the area. RERA mandates a uniform definition of carpet areas, reducing confusion and false promises.

 5. Quick Dispute Resolution
 RERA authorities provide a faster way to resolve disputes between buyers and builders compared to long court battles.

 6. Increased Investors' Confidence
 With better regulation and transparency, investors feel more secure, boosting the real estate market. 

 Disadvantages of RERA

1. Problems with Implementation Between States
Despite being a central law, RERA is applied differently in each state. The effectiveness of some states' regulations has been diminished by their dilution.

2. Increasing Builders' Compliance Burden
Developers must submit thorough project reports, obtain numerous approvals, and adhere to tight deadlines, all of which can raise expenses and cause delays.

3. Increased Project Expenses
Buyers may be indirectly impacted by developers raising property prices due to the additional compliance and escrow requirements.

4. Restricted Access
RERA only applies to projects that exceed a specific size and threshold. Informal transactions and smaller projects might still be unregulated.  

5. The Application of Delayed Dispute Resolution
 Even though RERA promises speedy resolutions, understaffed authorities in some states cause hearings and appeals to be delayed.

 6. Transitional Difficulties
 Ongoing projects at the time of RERA’s implementation faced difficulties in compliance, causing confusion among both buyers and builders.

 Conclusion
 RERA has revolutionized the real estate industry by introducing discipline.  It has increased investor confidence, increased buyer power, and made transactions more transparent.  The act is still developing, though, and issues like inconsistent state-level implementation, the expense of compliance, and real-world delays must be resolved.

 RERA is generally a step in the right direction for homebuyers looking to invest in safe real estate, but it also means more accountability and more stringent regulations for builders.