Since the real estate law has been implemented in various states in India, close to one lakh projects and 71,514 agents have been registered to date while over 1 lakh cases of consumer disputes have been resolved, says a report by property brokerage firm JLL India.
The adoption of the Real Estate (Regulation & Development) Act, (RERA) by 27 states and 8 union territories in the past five years has been the first successful step in acceptance at a national level, it adds.
“One of the important pillars of the RERA regulation was grievance redressal. Homebuyers who suffered due to various issues and challenges like incomplete projects, project delays, lop-sided home-buying agreements, etc., were looking for justice. The RERA sought to address these issues by creating a separate system to address the complaints of home buyers. Homebuyers, currently have option of filing a complaint with the RERA Authority, RERA Tribunal and RERA Adjudicating Officer,” said Samantak Das, head of research and REIS.
“The success of the system can be gauged from the fact that the cumulative cases disposed of by various RERA authorities have witnessed a sharp rise annually. The cumulative number of cases disposed increased from 18,543 as of June 2019 to 106,428 cases as of January 2023,” he added.
Uttar Pradesh leads with a 40% share of disputes closed
Home buyers in some of the residential markets were saddled with a lot of grievances. Some of these markets witnessed a sharp surge in the filing of complaints which were ably addressed by the RERA authorities in their respective states. Uttar Pradesh (UP) accounted for the largest share of dispute resolution with a 40% share of total cases closed. Five states account for 81% of cases closed as of January 2023.
Maharashtra accounts for highest share of registrations at 39%
The mandatory registration of projects under the RERA brought much-needed uniformity in collating information essential for homebuyers. The registration of projects reflects the trends in the residential sector as is evident from the lowest registration during the pandemic year 2020. The state-wise analysis of the registrations indicates that few states account for a large share of registrations.
Maharashtra accounts for the largest share of projects registration at 39% while Tamil Nadu has the second largest share at 13%. Gujarat is the third largest in registrations at 11%. Delhi-NCR, Karnataka and Telangana rank in the top six states. As a mandate under the act, all projects need to be registered and this has brought the much-needed uniformity in collating information essential for homebuyers.
21% CAGR growth in agent registration from 2019 to 2023
Agent registration grew from 33,270 as of January 2019 to 71,514 as of January 2023 translating to a CAGR growth of 21%.
79% agents are registered in 5 states; Maharashtra accounts for more than half
The state-wise share of agents registered till January 2023 reveals that just five states account for 79% of the total share. Maharashtra accounts for the largest share of registered agents while UP accounts for the second largest share of 8%. Rajasthan’s share of agent registration is at 7%.
