The Real Estate (Regulation and Development) Act, 2016 (RERA) has reshaped India’s housing sector, ushering in transparency, accountability, and investor confidence, according to a new report by Knight Frank India and NAREDCO.

The study, RERA’s Reign – Charting Real Estate Growth Post-2016, highlights how the landmark reform has curbed speculative pricing, restored consumer trust, and attracted institutional capital, positioning Indian real estate as a credible long-term investment destination.

According to the report, with the implementation of RERA, speculative pricing in the housing market was brought under effective checks and balances. This policy intervention played a central role in aligning price growth with market fundamentals. Over time, with due processes in place and business restructuring on the supply side, the residential property market in India registered the much awaited growth post the last down cycle.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “RERA has been one of the most impactful reforms for India’s housing market in recent times, making the sector more transparent and instilling accountability. Transparency and delivery discipline have given consumers the confidence to return to the market, while institutional investors are once again viewing residential real estate as a credible long-term investment story. This renewed balance in India’s housing market will go a long way in achieving sustainable growth.”

The implementation of RERA has helped shift the housing sector away from speculative cycles, forcing developers to adopt compliance, transparency, and delivery-focused practices. For consumers, the result has been fairer pricing and renewed confidence in housing as a stable asset class.

Investor Confidence Peaks

Alongside improved affordability, investor confidence in Indian real estate has climbed steadily in the post-RERA era. The report highlights that cumulative private equity inflows surged to USD 26 bn between 2017–2020, compared to just USD 17.5 bn during 2011–2016. This influx of institutional capital reflects greater trust in the sector’s regulatory environment, signalling the success of RERA in building a more credible investment landscape.

The performance of the NIFTY Realty Index further demonstrates this trend, showing stability and resilience in the post-RERA years. Large investors, once wary of opacity and delayed delivery, now view Indian real estate as a more predictable and disciplined market. According to the report, this structural shift has positioned India’s housing market as a long-term investment destination for both domestic and global players.

RERA’s National Footprint

Beyond prices and investments, RERA’s scale of implementation underlines its importance as the backbone of India’s housing market. By mid-2025, nearly 1.5 lakh projects and 1 lakh agents had been registered under the Act, while 1.5 lakh consumer complaints were successfully resolved

This regulatory reach demonstrates not only the seriousness of RERA’s enforcement but also its growing acceptance among homebuyers and developers alike. For the first time, Indian homebuyers have had recourse to a structured grievance redressal mechanism, and developers have had to align their practices with strict compliance standards.

The result has been a more transparent housing market, where accountability, timely delivery, and financial discipline are no longer exceptions but expectations.

Saurabh Mehrotra, Executive Director–Valuation and Advisory, Knight Frank India, said, “For investors, this regulatory environment has helped create transparency and credibility in the residential sector, as reflected in the USD 26 bn 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.”

G Hari Babu, President, NAREDCO, said, “Over the past eight years, RERA has been nothing short of a game-changer for Indian real estate. As highlighted in the Knight Frank report at the 17th NAREDCO National Convention, housing sales in India touched an all-time high of ₹3.1 lakh crore in 2024, and nearly 1.5 lakh projects and 1.5 lakh consumer complaints have already been addressed under the RERA framework. This journey from opacity to transparency has rebuilt the trust of homebuyers, lenders, and global investors alike. The next step must be to evolve RERA into a more uniform, technology-driven framework across states so that the sector continues to be a backbone of India’s economic rise.”

While RERA has laid a strong foundation, the report notes that more work remains to be done. Strengthening enforcement across states, harmonizing compliance frameworks, and adopting a “One Nation, One RERA” model will be critical to further enhance transparency and efficiency

The report also recommends leveraging technology to streamline approvals and grievance redressal, alongside continued alignment with global best practices in real estate regulation. With India’s housing demand projected to rise steadily in the coming decade, sustaining confidence through consistent policy enforcement will be key.

The data and insights presented in RERA’s Reign – Charting Real Estate Growth Post-2016 confirm that the Act has been a game changer for Indian housing. It has moderated prices, boosted investor confidence, and empowered consumers at an unprecedented scale. As RERA evolves into its next phase, it is poised to remain the cornerstone of India’s real estate growth story.