It was in 2016 that RERA took effect in India. The RERA, or Real Estate (Regulation and Development) Act, stirred quite a political and economic storm. It is primarily devised to create a strong real estate sector that safeguards the interests of house buyers. What the regulation aims at is boosting real estate transparency and strengthening property investment security with the help of escrow accounts and a comprehensive RERA complaint process. The act is greatly beneficial to house buyers with all that it provides in terms of protection and making sure that projects are up to the stern standards of the Real Estate Regulatory Authority.
Timely project completion and quality inspections are guaranteed by RERA, so the developers are now more focused on successful completion of projects. It has, in turn, boosted investor confidence and foreign investment as well. Issues still, however, remain around successful implementation of the act, particularly in terms of compliance from all the stakeholders and procedural tweaking by all states.
Let’s look into the key impacts of RERA, along with the challenges it poses.

Important effects of RERA on Gurugram residential real estate:
• More transparency:
RERA mandates that the developers provide exhaustive information regarding the project, viz., plans, approvals, and completion schedules. Such disclosure makes RERA compliance all the more effective and ensures that information about the project is explicitly conveyed so that the buyers can make better decisions.
• Timely project completion:
Developers are currently liable for financial impropriety and project holdups. They have to conform to set timelines set by the act. This obliges them to deliver properties as promised, with no unwarranted holdups.
• Protection for homebuyers:
With the RERA Act, there is more quality, transparency, and accountability for homebuyers. These are the elements that boost investor confidence and more investment in real estate and higher sales.
• Compulsory registration:
All projects have to finalize RERA registration prior to marketing. The statutory registration guarantees that only RERA-sanctioned projects are presented in the market, thereby providing investment security and safeguarding the rights of homebuyers.
• Reduced litigation:
These provisions in RERA provide for fast-track modes of dispute resolutions, minimizing litigation in the real estate sector. It is a speedy way of concluding disputes in lands.
• Emphasis on affordable housing:
RERA has incentivized developers to focus on affordable housing projects, helping to meet the growing demand for such housing in Gurugram.

Also Read : Top Affordable Localities in Gurugram for Budget Friendly Homes 

Drawbacks and Challenges of RERA in Gurugram:
• More compliance burden for developers:
Developers have to comply with vigorous regulatory standards as per RERA. It has therefore led to voluminous documentation and registration procedures, thereby escalating the administrative load. These are delaying factors for project commencement and marketplace dynamics.
• Delays in projects for approval:
Compliance and registration procedures enforced by the RERA Act have led to delayed projects, something that may significantly affect investment planning as well as market sentiment.
• Higher cost for the developers:
Additional duties by RERA have increased the expense of operations. These are typically passed on to the homebuyers in the form of higher property rates, hopefully decreasing demand and affordability.
• Minimal effect upon existing projects:
Although the RERA Act greatly increases protection and clarity for buyers in new projects, it has little or no effect in retrospect for older projects. The majority of existing properties are not subjected to the same degree of regulation.
• State-level regulations:
Since every state has a different RERA authority, the act's execution may be different for different states. It results in states having dissimilar regulations and enforcements, making it difficult for homebuyers as well as builders to understand them. These discrepancies make the effective and same execution of the RERA Act difficult.

RERA Haryana has significantly impacted real estate in Gurugram by enhancing transparency, accountability, and consumer protection. Despite its many advantages, there are notable drawbacks that need to be addressed. Understanding both the impact and challenges of RERA in Gurugram will help homebuyers and real estate developers make informed decisions, ultimately reshaping the city’s real estate landscape.