The Real Estate (Regulation and Development) Act, 2016—known as RERA—marked a turning point for real estate investment in India. RERA, which has been enacted to prevent delays, fraud and opaqueness has transformed the sector in the last ten years.
The impact of these changes has been experienced in AU Realestate whereby the risks have been leveled hence providing the investors with the steady returns.
RERA and its Fundamental Reforms and Long-term Effect
RERA stipulates:
- Project registration
- Completion dates
- Escrow mechanisms where buyer funds are kept
At least 70 percent of the collections are required to be used in construction.
According to ANAROCK statistics:
- Delivery delays before RERA were 40–50 percent
- By 2025, delays have reduced to less than 20 percent
States such as:
- Maharashtra
- Karnataka
have the highest number of registered projects, exceeding 50,000, which contributes to greater accountability.
Investor Impact
- Reduced number of failed assets
- Improved grievance redressal through RERA portals
The Changing Risks under the Post-RERA Landscape
Risks have not disappeared, but they have evolved.
Earlier Risks
- Black money transactions
- Unauthenticated titles
Post-RERA Changes
- Title fraud reduced by 60 percent (Knight Frank reports)
Existing Challenges
- In Tier-2 cities such as Jaipur and Lucknow, oversupply has reduced prices by 5–10 percent in 2025
- Interest rates rising to 8.5 percent are affecting affordability
- Environmental approvals and GST compliance require careful scrutiny
Due diligence remains critical. Smart investors are now focused on property development projects that strictly adhere to RERA norms to avoid legal issues.
Better Returns and Market Momentum
Returns have become more stable.
Market Drivers
- Urban migration
- Infrastructure push under the PM Gati Shakti scheme
According to PropTiger:
- Residential sales reached 310,000 units in H1 2025
- This reflects a 25 percent year-on-year increase
Returns Overview
- Average rental yields in metros: 3–4 percent
- Capital appreciation in growth corridors: 8–12 percent annually
Real estate investment in India now rivals fixed deposits, further strengthened by PMAY 2.0 subsidies for affordable housing.
Partnering with Real Estate Advisory Firms for Success
Navigating the post-RERA landscape requires expertise.
Role of Advisory Firms
Real estate advisory firms like AU Realestate provide:
- Data-backed insights
- Site evaluations
- Yield forecasts
With operations in 20+ cities, they assist clients in identifying high-potential assets while accounting for:
- Repo rate stability
- Green building requirements of 2025
Conclusion
In summary, RERA has transformed real estate investment in India into a more reliable avenue by reducing risks and enhancing returns.
Staying informed and seeking guidance from trusted associates is essential for long-term success in this evolving market.
