Rera reshapes India's housing market, boosts investor confidence: Report

Knight Frank-Naredco report says Rera has curbed speculation, moderated prices, restored consumer trust and attracted long-term investor inflows into India's housing sector

The Real Estate (Regulation and Development) Act, 2016 (Rera) has transformed India’s housing market by fostering transparency, discipline and long-term investor confidence, according to a report by Knight Frank India and the National Real Estate Development Council (Naredco).

 

Rera has moderated runaway housing prices, curbed speculative practices and restored consumer trust. By imposing stricter checks and balances, the Act aligned price growth with market fundamentals and compelled developers to adopt compliance-driven, delivery-focused practices. For homebuyers, this has translated into fairer pricing and greater confidence in housing as a reliable asset class.

 

Investor sentiment has also strengthened in the post-Rera period. Private equity inflows into Indian real estate surged to $26 billion between 2017 and 2020, compared to $17.5 billion in 2011–2016.

   

The Nifty Realty Index has mirrored this shift, showing improved stability and resilience. Large investors, once wary of opacity and project delays, increasingly view Indian real estate as a predictable, regulated market.

 

By mid-2025, nearly 1.5 lakh projects and 1 lakh agents were registered under Rera, while 1.5 lakh consumer complaints had been successfully resolved.

 

“For investors, this regulatory environment has helped create transparency and credibility in the residential sector, as reflected in the $26 billion private equity inflows since 2017. Since its inception, Rera has resolved 1.5 lakh consumer complaints while regulating projects and agents at scale. It has firmly established itself as the backbone of India’s residential real estate sector,” said Saurabh Mehrotra, executive director, valuation and advisory, Knight Frank India.

 

The report noted that Rera has structurally repositioned Indian housing as a long-term investment destination for both domestic and global players. However, it also highlighted the need for further reforms. Strengthening enforcement across states, harmonising compliance frameworks and adopting a “One Nation, One Rera” approach will be essential to enhance transparency and efficiency.

 

The report further recommended leveraging technology to streamline project approvals and grievance redressal, alongside continued alignment with global best practices in real estate regulation.

 

With housing demand projected to rise steadily in the coming decade, sustaining investor and consumer confidence through consistent policy enforcement will be critical to the sector’s growth path.