Impact of Implementation of RERA in Gujarat

Abstract

The real estate sector of India is one of the major contributors to the GDP and is one of the pillars of the economic growth of the nation. Before 2016, the sector was unorganised in terms of regulation and transparency leading to many troubles for the various stakeholders in this sector. In 2016 Indian Government introduced the Real Estate (Regulation and Development) Act. This paper aims to find the ground reality of the Impact of RERA in the real estate industry. In this study, the author identified 26 impact attributes based on the literature review, and the questionnaire was prepared for the same. Over 95 responses were collected from industry professionals, of which analysis was performed. Factor Analysis was performed, which extracted 5 factors: 1) Standardized sales and customer protection, 2) Efficient governance and Project optimization, 3) Consumer-centric standardization and transparency, 4) Promoter accountability, 5) Construction quality, and price escalation and market uptrend. Further Consistent fuzzy preference was performed in this study to determine the relative weight of these impact factors and associated impact attributes. The findings indicate that Consumer-centric standardization is the most important impact factor whereas, price escalation and market uptrend factor is the least important impact factor. These factors could be utilized as the basic picture to the lawmakers and govt authorities to change or modify the law in the future.