RERA (Real Estate Regulatory Act)

The Future of Indian Real Estate: Key Recommendations to Strengthen RERA in 2026

Sudheendra Kumar1 week ago1 week ago07 mins

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The Future of Indian Real Estate: Key Recommendations to Strengthen RERA in 2026

Discover the latest high-level recommendations to strengthen India’s RERA. From mandatory redevelopment registration to AI-driven monitoring, learn how RERA 2.0 aims to protect homebuyers and streamline the real estate sector.

RERA 2.0: The Blueprint for a Stronger, More Transparent Real Estate Sector in India

The Real Estate (Regulation and Development) Act (RERA) of 2016 was a landmark piece of legislation that transformed the Indian property market from an “unregulated jungle” into a structured, accountable ecosystem. Ten years later, while 1,58,856 projects and 1,12,051 agents are registered nationally, the industry stands at a crossroads.

To address evolving challenges, a high-level Round Table chaired by Shri Durga Shanker Mishra recently proposed a comprehensive set of reforms to “Strengthen RERA”. For homeowners, investors, and developers, these proposed changes, RERA 2.0 could redefine how property is bought and sold in India.

1. Expanding the Safety Net: Mandatory Redevelopment Registration

Currently, many RERAs only require the registration of the “sale component” in redevelopment projects. The Round Table recommends amending Section 2 to mandate the registration of the entire redevelopment project, including the rehabilitation portion. This ensures that existing homeowners, who “pay in kind” by giving up their land rights, receive the same statutory protections as new buyers. Additionally, a Model Agreement for Permanent Alternate Accommodation (PAA) is proposed to standardize these complex transitions.

2. Eliminating Jurisdictional Confusion

One of the biggest hurdles for homebuyers today is the overlap between Consumer Courts and RERA. The committee advocates for making RERA the exclusive forum for real estate disputes under Section 71 to prevent conflicting judgments and ensure faster justice. Furthermore, they call for a strict, uniform interpretation of the “500 SqM or 8 Apartments” threshold to stop developers from exploiting loopholes to avoid registration.

3. Faster Dispute Resolution: Mediation and Conciliation

While some RERAs have successfully used conciliation, it is not yet a statutory requirement. The proposal includes adding formal mediation and conciliation mechanisms under Section 32(g). This shift toward Alternative Dispute Resolution (ADR) could significantly reduce the 1,55,262 complaints currently clogging the system.

4. Tailored Remedies for Project Delays

Not all homebuyers want a refund when a project is delayed. The Round Table suggests two distinct paths under Section 18:

For those exiting: A full refund plus interest.
For those staying: Mandatory Rental Compensation, as determined by RERA, to support the buyer until they receive possession.

5. Financial Fluidity: Unlocking Funds Post-Completion

To improve developer liquidity, a new provision is recommended for Section 4 that would allow promoters to withdraw the entire balance from RERA-designated accounts immediately upon receiving an Occupancy Certificate (OC) or Completion Certificate. This prevents capital from being unnecessarily locked in “project closure” red tape.

6. Digital Governance: AI and the Central Monitoring Cell

The future of RERA is digital. The experts propose:

AI and Blockchain: Using advanced tech to track project progress and ensure consistency in RERA orders across different states.
Central Monitoring Cell (CMC): Establishing a national body under the Ministry of Housing and Urban Affairs (MoHUA) to analyze data, flag misleading advertisements, and generate reports for informed decision-making.

The Path Forward

From clarifying the ownership of common areas to providing “Force Majeure” protections during national crises like pandemics, these recommendations aim to make RERA more resilient. As the real estate sector moves toward alternative housing like student housing and retirement homes, these updates to the Act will be vital in maintaining trust and transparency.