1) What Is the Real Estate Sector and Why Is It Significant?

The real estate sector refers to the business of buying, selling, renting, and developing land
and properties (both residential and commercial). It encompasses a wide range of activities,
including property construction, real estate investment, property management, and real estate
brokerage. There are classified as follows:

1) Residential Real Estate: This includes properties like houses, apartments, and
condominiums that are bought, sold, or rented for personal use.
2) Commercial Real Estate: This involves properties used for business purposes, such
as office buildings, retail spaces, industrial properties, and warehouses.
3) Industrial Real Estate: This includes properties used for industrial purposes, such as
manufacturing plants, factories, and distribution centers.
4) Land: Raw land or agricultural land that is bought or sold for future development or
investment purposes.
5) Real Estate Investment Trusts (REITs): These are companies that own, operate, or
finance real estate properties, allowing investors to purchase shares in real estate
portfolios.

The real estate sector is one of the largest sectors in the economy, often accounting for a
significant portion of a country’s GDP, providing employment, and contributing to wealth
creation.

Why is the Real Estate Sector Significant?

 Economic Contribution

The real estate sector plays a significant role in a country’s economy. It is often one of the
largest contributors to a nation’s GDP, due to the substantial volume of transactions,
development, and investments involved. The buying, selling, and development of property
directly influence the performance of many other sectors, such as construction, banking,
insurance, and manufacturing. For instance, when new buildings are constructed, it not only
creates jobs within the real estate and construction industries but also generates demand for
raw materials such as cement, steel, and glass. Additionally, real estate transactions generate
substantial revenue for governments through taxes and fees, contributing to public funding
for education, healthcare, and infrastructure projects.
 Job Creation and Employment Opportunities

One of the major advantages of the real estate sector is its ability to generate jobs across
multiple industries. It is a major employer for a wide variety of professionals, including real
estate agents, construction workers, architects, engineers, lawyers, and financial experts. For
every property transaction, many roles are involved, from legal and financial services to the
physical labour of building or renovating properties. The sector’s ability to stimulate
employment in other industries such as manufacturing, retail, and technology further
demonstrates its economic significance. Additionally, as urbanization increases and cities
grow, the demand for new housing, infrastructure, and commercial spaces grows, further
boosting employment in real estate development and property management.

 Wealth Creation and Investment Opportunities

Real estate is considered one of the most reliable forms of wealth creation. For both
individuals and businesses, owning property often represents one of the largest investments
they make. Over time, real estate generally appreciates in value, making it a secure asset that
can offer long-term financial growth. Additionally, property can provide ongoing rental
income, offering a steady revenue stream for owners. Many investors view real estate to
diversify their portfolios and hedge against inflation, as property values tend to rise with or
outpace inflation rates. The development of real estate also attracts substantial foreign
investments, which can contribute to the economic prosperity of both local communities and
national economies.

 Urbanization and Infrastructure Development

Real estate is directly tied to urbanization, a process in which populations move from rural to
urban areas, driving up the demand for residential and commercial properties. As cities
expand, the need for new infrastructure such as roads, public transport systems, and utilities
grows. This demand for infrastructure development helps improve the quality of life for
residents while creating new opportunities for businesses. Large-scale real estate projects like
residential communities, office buildings, and retail centers are essential for creating vibrant
urban centers that promote economic activity and social connectivity. Real estate
development, therefore, plays a crucial role in the broader process of urban planning and
community-building, helping cities grow in a sustainable and organized manner.
 Impact on Other Sectors

The real estate sector has a significant multiplier effect on the economy, impacting a wide
range of other industries. The demand for construction materials such as cement, steel, and
glass stimulate manufacturing industries, while also supporting jobs in logistics, retail, and
sales. Additionally, real estate’s connection to the banking sector is profound, as properties
are often used as collateral for mortgage lending. This creates a thriving financial market
centered around property transactions, which influences broader economic conditions. The
real estate sector, therefore, has a ripple effect, affecting everything from supply chains and
manufacturing to finance and consumer spending. Its impact extends beyond property
transactions, influencing the economic health of a nation.

 Government Revenue and Policy Impact

Real estate is a significant source of revenue for governments through taxes such as property
taxes, stamp duties, and transaction fees. These taxes provide essential funding for public
services such as education, healthcare, infrastructure, and law enforcement. In addition to
generating revenue, governments play a key role in regulating the real estate market through
policies such as zoning laws, building codes, and tax incentives. These regulations are crucial
for ensuring that the real estate market operates smoothly and sustainably, impacting housing
affordability, rental markets, and urban development. Government decisions in these areas
can influence the supply of real estate, shape housing markets, and ultimately affect the
economic stability of a country.

2) What challenges in the India led to the enactment of The RERA Act?

The Real Estate (Regulation and Development) Act, 2016 (RERA) was enacted in India to
address several challenges that had long plagued the real estate sector. These challenges
primarily stemmed from issues such as lack of transparency, delayed project delivery, poor
construction quality, and a fragmented market with minimal consumer protection. The
enactment of RERA was aimed at bringing transparency, accountability, and efficiency into
the sector.
 1) Lack of Transparency

One of the most significant issues in the Indian real estate sector was the lack of transparency
in transactions. Buyers often faced difficulties in obtaining clear information regarding
project timelines, delivery dates, and the quality of construction. Many developers made
promises that were either unclear or not fulfilled, leading to dissatisfaction and disputes
between buyers and builders.

The lack of transparency resulted in an atmosphere of mistrust between consumers and

developers, and this undermined confidence in the sector.

RERA mandates that developers register their projects with the regulatory authority before
advertising or selling properties. Developers must provide clear and honest information about
the project, including completion timelines, layout plans, and other details. This ensures that
consumers can access accurate and transparent information.

2) Delayed Project Delivery

Frequent delays in the completion and possession of properties were a major issue in India’s
real estate market. Builders often missed deadlines, leading to financial and emotional
distress for homebuyers. There was little accountability for these delays, and buyers were left
without any legal recourse.

This delay in delivery resulted in frustration for homebuyers, especially as many had invested
their life savings or taken loans to purchase homes. Delays in possession also disrupted
people’s lives, affecting their ability to plan and settle into new homes.

Under RERA, developers are required to register their project timelines and face penalties if
they fail to deliver on time. If a builder fails to deliver the project as promised, they must
compensate buyers by paying interest for the delay. This provision ensures that developers
are held accountable for project timelines and encourages timely delivery.

3) Unclear Title and Legal Disputes

Property buyers often faced issues related to the unclear title of land and legal disputes. Many
real estate transactions involved properties with unclear ownership, encroachments, or
pending litigation, leading to conflicts after the sale. This was especially problematic when
buying land or homes in new developments.

Legal disputes over property titles delayed or completely halted the possession process,
leading to financial losses for buyers. Such issues also created a cloud of uncertainty for
investors and homeowners.

RERA requires developers to register their properties and provide legal title clearances before
the property is sold. This ensures that buyers are assured of the legitimacy of the property and
its ownership rights, thereby reducing the likelihood of legal disputes.

4) Unregulated and Fragmented Market:

The Indian real estate sector had been largely unregulated for a long time. As a result, a large
number of unprofessional or fraudulent builders operated without proper oversight, creating a
fragmented and chaotic market. Buyers were often at the mercy of developers who failed to
meet basic standards of construction or provided poor-quality homes.

This unregulated environment allowed fly-by-night operators to deceive consumers and carry
out substandard construction practices. Buyers were left vulnerable to fraud, and the lack of
regulation made it difficult to seek justice.

RERA established a national framework to regulate the real estate sector. It mandates that
developers must adhere to strict guidelines regarding construction quality, safety, and project
approvals. The Act also imposes penalties for violations of rules, ensuring that builders
operate within a regulated framework.

5) Defects in Construction Quality:

Poor construction quality was a significant concern for many buyers. Often, developers
would compromise on the materials used, resulting in homes that were unsafe or
uncomfortable to live in. Additionally, many developers failed to maintain proper standards
of construction or follow environmental and safety regulations.

The quality of construction was often subpar, leading to problems such as leaking roofs,
faulty electrical systems, and structural weaknesses, which could compromise the safety of
residents.

RERA introduced provisions that hold developers accountable for defects in construction.
Developers are required to rectify any structural defects within a specified period after
possession. If any defects arise within a given timeframe, the builder is required to fix the
issue at no extra cost to the buyer.

6) Lack of Consumer Protection:

The real estate sector lacked sufficient mechanisms for consumer protection. Buyers had
limited options for resolving grievances and often faced long legal battles if they were
cheated or wronged by builders.

Many consumers were left with no recourse when faced with issues like delayed possession,
poor-quality construction, or non-refund of advance payments. As a result, homebuyers were
vulnerable and had little to no means of redress.

RERA established a Consumer Protection Authority that provides a mechanism for

consumers to resolve disputes with developers. It also ensures that builders comply with the
terms of the contract and protect the rights of homebuyers. The introduction of a regulatory
authority makes the process of claiming compensation more straightforward and accessible.

7) Promotional Practices and False Advertising:

Developers and agents often used misleading advertising to promote properties, promising
features or amenities that were either not included in the project or were delivered much later
than anticipated.

Buyers were often misled by flashy advertisements or unsubstantiated claims about a

property’s features, leading to a loss of trust in the market.

RERA mandates that all promotional materials, advertisements, and sales pitches be truthful
and based on registered project details. It prohibits developers from making false claims,
ensuring that buyers get exactly what they are promised.

3) Regulations/ Measure prescribed under The RERA Act to solve these

challenges.

The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to
address challenges in the Indian real estate sector like transparency issues, delayed project
delivery, poor construction quality, and legal disputes. the key regulations and measures
under RERA to solve these challenges are as follows:

1) Project Registration and Transparency: Developers must register projects with

RERA before advertising or selling. This ensures transparency by disclosing key
details like project plans, timelines, and legal approvals to consumers.

2) Timely Project Delivery: Developers are required to meet the specified completion
deadlines. If they delay, they must compensate buyers with interest. This ensures
developers stay on track and reduces delays.

3) Clear Title of Land and Legal Compliance: Developers must ensure the land title
is clear and free from disputes. All necessary approvals must be in place before
launching a project, ensuring the buyer’s investment is secure.

4) Quality Construction and Defects Liability: Developers must adhere to

construction quality standards. If defects arise within five years of possession, the
developer is obligated to fix them at no additional cost to the buyer.

5) Consumer Protection and Grievance Redressal: RERA establishes regulatory

authorities and an appellate tribunal to resolve consumer grievances efficiently,
ensuring buyers' rights are protected.

6) Real Estate Agent Registration: Real estate agents must be registered and follow a
code of conduct, ensuring ethical and professional behavior in transactions.

7) Mandatory Disclosure of Project Details: Developers must disclose essential

project details like carpet area and amenities, ensuring buyers are fully informed
before making a purchase.

8) Strict Advertising Regulations: Developers and agents must provide truthful,

accurate advertising, and misleading claims are penalized, protecting buyers from
fraud.

9) Penalties for Non-Compliance: Developers who fail to meet RERA regulations face
fines or are required to refund buyers with interest, ensuring accountability and fair
practices.

These regulations aim to bring transparency, accountability, and consumer protection,

transforming the Indian real estate sector into a more organized and reliable market.
 Saritha Elan is a residential project developed by Saritha Developers, situated in the
Marathahalli locality of Bangalore. The project offers ready-to-move-in 2 BHK
apartments, emphasizing quality construction and modern amenities.
Established in 2012, Saritha Developers has over a decade of experience in the real
estate sector. The company focuses on delivering high-quality housing, primarily
targeting first-time homebuyers seeking apartments priced between INR 50-70 lakhs
in and around Bangalore's IT sector. To date, Saritha Developers has successfully
completed four residential projects, including Saritha Elan, and has plans for further
expansion.
Project Details:
RERA Registration: Saritha Elan is registered under the Real Estate (Regulation and
Development) Act, 2016 (RERA), ensuring transparency and adherence to regulatory
standards. The RERA registration number for this project is
PRM/KA/RERA/1251/446/PR/171031/001496.

 Location: Sy. No:85/1, 3rd Cross, Manjunatha Layout, SGR Dental College Road,
Munnekolala, Marathahalli, Bangalore, Karnataka, India.
commonfloor.com
 Developer: Saritha Developers
 Configuration: 2 BHK apartments
 Built-up Area: Ranging from 931 sq. ft. to 1,100 sq. ft.
squareyards.com
 Price: Starting from INR 45.61 lakhs
propertypistol.com
 Possession Date: December 2018
propertypistol.com
RERA Registration: Saritha Elan is registered under the Real Estate (Regulation and
Development) Act, 2016 (RERA), ensuring transparency and adherence to regulatory
standards. The RERA registration number for this project is
PRM/KA/RERA/1251/446/PR/171031/001496.
commonfloor.com
 Amenities: Saritha Elan offers a range of amenities designed to enhance residents'
lifestyles, including:
 Gymnasium
 Cricket Ground
 Children's Play Areas / Sand Pits
 Volleyball Court
 Yoga Areas
 Jogging / Cycle Track
 Power Backup
 24 x 7 Security
 CCTV / Video Surveillance
 Clubhouse
 Central Park / Green Area
 Indoor Games
 Visitors Parking
Connectivity: Marathahalli is a well-connected locality, offering easy access to
various parts of Bangalore. The nearest bus stop to Saritha Elan is Marathahalli
Bridge, located approximately 0.7 km away, providing convenient public
transportation options.
magicbricks.com
Nearby Facilities: The project's strategic location ensures proximity to essential
facilities such as:
 Educational Institutions
 Healthcare Centers
 Shopping Malls
 IT Hubs
 Entertainment Zones
Conclusion: Saritha Elan presents a viable option for homebuyers seeking affordable
and comfortable living spaces in Marathahalli, Bangalore. With its RERA registration
ensuring compliance with regulatory standards, a range of amenities, and strategic
location, it offers a balanced blend of quality, convenience, and affordability.