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

On March 15, 2016, the Indian Parliament approved the much awaited Real Estate (Regulation and Development) Act, 2016 (Real Estate Act, 2016), which aimed to regulate and improve the efficiency of the real estate sector. Speaking on the occasion in Parliament, the Union Minister for Housing & Urban Poverty Alleviation, M. Venkaiah Naidu (Naidu), said the passage of the Act was a boon to the nation; he said the new Act would ensure that the common man’s desire of owning a house without any constraints would be fulfilled

The real estate sector in India was characterized by uneven delays in the completion of projects, lack of quality in construction work, and unanticipated escalations in construction costs. In addition, the buyers faced many legal and regulatory hassles in the construction process and finally ended up accepting a low quality product and facing legal challenges. Naidu said that the Real Estate Act, 2016, will not only address the operational challenges the buyers and developers are facing in the sector, but also encourages sustainable investments in the sector.