Real Estate Act, 2016- Fostering the growth of Private Equity Investments?

The introduction of the Real Estate Act, 2016 created a benchmark in the history of the real estate sector in India. The sector was highly unorganized and consisted of different kinds of players. In the absence of a proper regulatory authority, the sector was beset with unethical and illegal activities, which finally took a toll on the buyers. In view of the prevailing circumstances and keeping in view the demand and necessity to foster growth of the sector, the Government of India introduced the Real Estate (Regulation and Development) Act, 2016 on March 15, 2016.

The Indian real estate sector has been attracting a large number of domestic as well as overseas private equity investors. Considering the growth and prospects of the sector, the Real Estate Regulation Act, if implemented properly, has the potential to turn the sector around and has the ability to attract even more investments and buyers. The case helps to discuss about the opportunities of private equity investments in real estate sector, and how the improvement of confidence in buyers increases the investment opportunities in the sector.