Union Home Minister Amit Shah, addressing CREDAI’s National Conclave in the national capital on December 19, stated that the Real Estate (Regulation and Development) Act (RERA) has played a decisive role in streamlining India’s real estate sector while effectively safeguarding the interests of homebuyers.
He said RERA has introduced structural reforms that have enhanced transparency in property transactions, improved construction quality, and strengthened buyer protection mechanisms, bringing long-needed discipline to the sector.
RERA Brought Discipline Despite Initial Apprehensions
The Union Minister noted that when RERA was first introduced, the industry had several apprehensions regarding regulatory oversight. However, over time, the law has proven to be beneficial for both developers and consumers.
“When we look back, nobody can deny that the RERA has played an important part in the smooth functioning of developers,” Shah said, underlining that regulation should not be viewed as a restriction but as a tool for credibility and growth.
RERA Implementation and Nationwide Adoption
The Real Estate (Regulation and Development) Act was passed in 2016 and came into full force in May 2017. Shah highlighted that RERA has been adopted by 35 States and Union Territories, reflecting its nationwide acceptance.
He shared key statistics demonstrating the scale of implementation:
• 29 States have constituted RERA Appellate Authorities
• 29 RERA Authorities have operational websites
• Over 1.55 lakh real estate projects registered under RERA
• Nearly 1.10 lakh developers registered nationwide
According to Shah, these numbers reflect RERA’s success in institutionalising fair transactions and accountability across the sector.
Regulations Strengthen Business and Consumer Confidence
Emphasising the importance of regulation, Shah said that regulations should be welcomed, as they help expand business opportunities, enhance credibility, and ensure better facilities for customers.
“When we take regulations as restrictions, then there is a problem. Regulations always help in increasing business opportunities and guaranteeing better facilities to customers,” he said.
In a lighter moment, Shah clarified that his remarks should not be taken as a signal of new regulations, but added that even if new rules were introduced, the industry should accept them in the right spirit.
Government’s Dialogue-Driven Approach
Shah reiterated that the government believes in continuous dialogue with stakeholders. He said the objective behind any regulatory reform is to simplify processes for businesses while protecting consumers.
“Our government always believes in dialogue. The objective of bringing new regulations is always to make things simpler for both businesses and customers,” he said.
GST Reforms Reduce Construction Costs
Highlighting fiscal reforms, Shah said the government has introduced major changes in taxation laws, including the Goods and Services Tax (GST), to reduce construction costs and make housing more affordable.
He detailed the reductions in GST rates:
• Affordable housing: from 8% to 1%
• Housing projects: from 12% to 5%
• Cement: from 28% to 18%
• Marble, granite, sand, lime, bricks: from 12% to 5%
• Bamboo flooring: from 12% to 5%
According to Shah, these reforms could lead to an overall cost reduction of 5–7 percent, enabling builders to provide better facilities to customers.
Housing for All and Role of Developers
Shah acknowledged the importance of the real estate sector in achieving Prime Minister Narendra Modi’s vision of ‘Housing for All’. He said that through industry bodies like CREDAI, the government’s commitment to providing a home for every citizen can be realised.
He urged large developers to introspect whether, while planning large-scale projects, they could also simultaneously develop low-cost and affordable housing, contributing to inclusive urban growth.
Conclusion: RERA as a Pillar of Trust and Growth
Amit Shah’s remarks reaffirmed RERA’s role as a cornerstone reform in India’s real estate sector. By improving transparency, reducing costs, and protecting homebuyers, RERA has helped transform the sector into a more credible, disciplined, and growth-oriented ecosystem, benefiting developers, buyers, and the economy alike.
