The law, which came into force in 2017 after being passed by the Rajya Sabha in 2016, addresses persistent concerns around project delays, fund diversion, and limited disclosure. A decade later, experts say it has materially improved buyer confidence and brought discipline to both developers and transactions.
Escrow discipline and accountability
A cornerstone of RERA is the requirement for developers to deposit 70% of funds collected from buyers into a designated escrow account, to be used only for that specific project. This provision has significantly reduced the risk of capital diversion and aligned fund usage with construction progress.
Shekhar G Patel, President of CREDAI, said the law has “altered the balance of power between the developer and the purchaser,” adding that escrow-based systems ensure financial discipline while making processes more accountable.
D Kishore Reddy, Chairman and Managing Director, Mana Projects, said RERA has made the sector “more transparent, accountable, and financially secure,” noting that ring-fencing of funds reduces the risk of project delays and enhances trust in under-construction properties.
Supporting this view, Sahil Agarwal, CEO of Nimbus Group, said routing funds through escrow accounts has “significantly curtailed” diversion, contributing to more predictable delivery cycles and improved financial discipline.
Improved safeguards for under-construction buyers
RERA has introduced multiple protections for buyers, particularly in under-construction projects—historically seen as high risk. These include caps on advance payments before signing agreements, standardised sale contracts, and provisions for refunds, interest, or compensation in case of delays.
The law also mandates a five-year defect liability period, strengthening post-possession accountability.
According to Robin Mangla, President of M3M India, these measures have “minimised the risk of fund diversion and project delays,” while enhancing overall credibility and dependability for homebuyers.
Deepak Sangwan, Chairman of Origen Realty, said the Act has “established higher standards of accountability, financial discipline, and transparency,” and played a key role in strengthening consumer confidence.
Transparency and data-led decision-making
Mandatory project registration and disclosure norms have transformed how buyers evaluate property investments. Developers are required to upload approvals, project timelines, layouts, and progress updates on state RERA portals, creating a verifiable data ecosystem.
D Kishore Reddy highlighted that buyers can now verify project registration, approvals, land titles, and developer track records before committing funds, enabling more informed decision-making.
Sahil Agarwal added that these disclosures have improved “information symmetry for buyers,” with many increasingly relying on publicly available filings to assess execution risks and developer credibility.
From opacity to a more credible asset class
Industry experts say the changes are most visible when compared with conditions a decade ago, when delays, unclear timelines, and weak grievance redressal mechanisms were widespread.
Ram Raheja, Managing Director of S Raheja, said RERA has brought “structure, financial discipline, and transparency,” leading to stronger buyer confidence and a shift towards more organised, credible players.
Nikhil Madan, Managing Director of Mahima Group, noted that improved visibility around approvals and construction progress has helped buyers make better decisions, while the escrow framework has safeguarded funds and supported more realistic project timelines.
More regulated, but still evolving
While experts agree that RERA has structurally reduced risks and improved transparency, they also point to the need for further refinement, particularly in simplifying approval processes and improving execution efficiency.
Still, the broader shift is clear. Real estate, once perceived as opaque and unpredictable, is seen as a more regulated, trackable, and professionally managed asset class.
As Shekhar G Patel noted, while due diligence remains important, the ecosystem today is “far more structured, predictable, and aligned with a more mature, compliance-driven future.”
