Impact of RERA on Real Estate in Gurugram

How RERA is changing the real estate landscape in Gurugram

09 Jun 2025

How RERA is changing the real estate landscape in Gurugram

In 2016, RERA came into effect in India. The RERA, or Real Estate (Regulation and Development) Act, caused quite an economic and political stir. The primary aim of this act is to establish a robust framework for real estate that protects the interests of homebuyers. The regulation is aimed at promoting transparency in real estate and reinforcing the security of property investments through measures such as escrow accounts and a detailed RERA complaint process. The act offers significant benefits to homebuyers by providing enhanced protection and ensuring that projects meet the rigorous standards of the Real Estate Regulatory Authority.

RERA ensures timely project completion and adherence to quality standards, encouraging developers to focus on delivering projects effectively. This, in turn, has boosted investor sentiment and foreign investment. However, challenges remain in the effective implementation of the act, particularly regarding compliance by all stakeholders and streamlining processes across all states.

Let’s look into the key impacts of RERA, along with the challenges it poses.

Key impacts of RERA on residential real estate in Gurugram:

• Increased transparency:

RERA requires developers to disclose comprehensive details about the project, such as plans, approvals, and completion timelines. This level of transparency enhances RERA compliance and ensures that project details are clearly provided, helping buyers make informed decisions.

• Timely project completion:

Developers are now held accountable for project delays and financial mismanagement. They must adhere to strict timelines enforced by the act. This commitment ensures that properties are delivered as promised, without unnecessary delays.

• Protection of homebuyers:

Under the RERA Act, homebuyers enjoy increased transparency, accountability, and quality standards. These protections boost investor confidence and contribute to increased sales and investment in real estate.

• Mandatory registration:

All projects must complete RERA registration before being marketed. This mandatory registration ensures that only RERA-approved projects reach the market, enhancing investment security and protecting homebuyers' rights.

• Reduced litigation:

RERA provisions ensure fast-track dispute resolution methods, which have reduced the number of litigations in the real estate sector. This provides an efficient way to resolve land disputes.

• Focus on affordable housing:
RERA has incentivized developers to focus on affordable housing projects, helping to meet the growing demand for such housing in Gurugram.

Disadvantages and Challenges of RERA in Gurugram:

• Increased compliance burden for developers:

Developers are required to adhere to strict regulatory requirements under RERA. This has resulted in extensive documentation and registration processes, increasing the administrative burden. These delays can affect project initiation and market dynamics.

• Project delays due to approvals:

The rigorous approval and registration processes mandated by the RERA Act have caused project delays, which can severely impact investment planning and market confidence.

• Higher costs for developers:

The additional obligations under RERA have led to increased operational costs. These costs are often passed on to homebuyers through higher property prices, which can affect affordability and demand.

• Limited impact on old projects:

While the RERA Act significantly enhances buyer protection and transparency for new projects, it has little to no impact on older projects. Many existing developments do not benefit from the same level of regulation.

• State-level regulations:

Since each state has its own RERA authority, the implementation of the act can vary. This leads to inconsistencies in regulation and enforcement across states, creating confusion for homebuyers and developers. Such disparities hinder the uniform and effective application of the RERA Act.

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.