The Indian housing market has witnessed a paradigm shift with the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA). While the Act has been instrumental in addressing the concerns of homebuyers across segments, its impact on the affordable housing sector has been particularly noteworthy.

RERA's Role in Promoting Affordable Housing

• Increased Transparency: RERA's emphasis on transparency has brought clarity to the affordable housing segment, enabling potential buyers to make informed decisions.

• Enhanced Consumer Protection: Safeguards introduced by RERA, such as escrow accounts and timely project completion, have instilled confidence among low and middle-income homebuyers.

• Facilitated Project Financing: By ensuring project viability and reducing risks, RERA has encouraged financial institutions to extend credit to affordable housing projects.

• Promoting Standardized Practices: RERA's focus on standardized practices has led to cost efficiencies in affordable housing projects, making homes more affordable.

Challenges and Opportunities

Despite the positive impact, challenges such as land acquisition, infrastructure development, and financial accessibility persist in the affordable housing segment. However, these challenges also present opportunities for innovation and collaboration.

The government, private developers, and financial institutions can work together to develop innovative financing models, leverage technology for efficient project management, and create sustainable affordable housing solutions.

The Future of Affordable Housing

RERA has laid the groundwork for a thriving affordable housing sector in India. By addressing the remaining challenges and capitalizing on emerging opportunities, the government and industry stakeholders can accelerate the realization of the 'Housing for All' mission.

- source : money.rediff.com