INSTITUTE OF TECHNOLOGY AND

MANAGEMENT

RESEARCH PROJECT
ON
IMPACT OF RERA ON CONSUMER BUYING BEHAVIOUR

SUBMITED TO: SUBMITTED BY:

DR. ROOPAM GOSAIN MANALI MHATRE
ROLL NO 1719PGDM2231
MARKETING (M5)

1|P ag e
 CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the Project Work titled ________________________________________

________________________________________________ (title) is a bonafide work carried out by

Mr. / Ms. ________________________________________________ (name of the student) Roll No.

______________________, a student of PGDM program 2018 – 2020 of the Institute for

Technology & Management, Kharghar, Navi Mumbai under my guidance and direction.

Signature of Guide : __________________________

Name of Guide : ____________________________________________________

Designation : __________________________

Date: _____________ Place: ________________

2|P ag e
 A
Research Project
ON

“ IMPACT OF RERA ON CONSUMER BUYING BEHAVIOUR”

Submitted to
Dr. Roopam Gosain
(Session 2017-2019)

Submitted by :
MANALI MHATRE
1719PGDM2231

3|P ag e
 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. I would like to extend my sincere thanks
to all of them.

I am highly indebted to Dr. Roopam Gosain for their guidance and constant supervision as well
as for providing necessary information regarding the project & also for their support in
completing the project.
I would like to express my gratitude towards my parents & ITM College for their kind co-
operation and encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to ITM College for providing me this
opportunity.

4|P ag e
 EXECUTIVE SUMMARY
Real estate (regulation and development) Act is a significant and crucial law which will impact
the whole real estate sector and it is going to change the whole picture of real estate industry
forever. It has made real estate industry more transparent. RERA has made the consumers real
winner of the industry and also it is going to protect them from unscrupulous activities. Research
had RERA has generated a trust in the mind of the consumer to invest in real estate. Home
buyers are agreeing to the clauses of RERA they are going too protected with regulatory body.
Major home buyers who are currently now focusing on price will shift to think about amenities,
brand, and location. This study is only complaint towards RERA and real estate consumers, real
estate promoter and real estate agent.

5|P ag e
 CONTENT

SR. NO TOPIC PAGE

1 INTRODUCTION 7

2 LITRATURE REVIEW 11

3 RESEARCH 12
METHODOLOGY

4 DATA COLLECTION, 13
ANALYSIS AND
INTERPRETATION

5 RECOMMENDATION AND 32
CONCLUTION

6|P ag e
CHAPTER 1: INTRODUCTION
1.1 Problem in hand
The Indian real estate sector has metamorphosed significantly over the last few years.
The pace of transformation has been largely accelerated by the Central government’s
reformatory steps to bring in ‘Acche Din’ in the realty sector. A new regulatory
environment has been created post-implementation of policies like DeMo, RERA, GST,
Real Estate Investment Trusts (REITs), the Benami Transactions (Prohibition)
Amendment Act, 2016 and the Pradhan Mantri Awas Yojana (PMAY), among others,
over the last four years. These policies have brought in a paradigm shift in the way real
estate business is now conducted, thus, inching closer towards greater transparency and
accountability, financial discipline, and increased efficiency. Moreover, from being an
investors delight, the Indian realty market has evolved into being a ‘buyers paradise,’
aided further by banks which reduced interest rates on housing loans and price
corrections in select markets over the last few years. The q-o-q growth in both housing
sales and new launches in 2018 is a testimony to the fact that the negative impacts of
DeMo, RERA and GST have eventually subsided. ‘Real’ consumers are back from their
wait-and-watch mode and ready to take the plunge.

1.2 Importance of the problem

To understand what property seekers want in the near future and whether the current
macroeconomic environment is conducive for them to take the plunge in the property
market or not. Besides analysing the future trends based on buyers preference, the report
also delves deeper into the past behaviour of property buyers from the demand
perspective.

7|P ag e
1.3 Historical Perspective
The structural adjustment programme of the early 1990s initiated the liberalization of
the Indian economy. The roots of the high appreciation rates on India's property
market witnessed during the boom period lie in the reduction of interest rates that were
instituted from year 2001 by Government’s continued policy of liberalization of
economy initiated in 1991. In early 2004, home loan rates sank to a record low of
under 7.5%, and this paved the way for the spiking that typified the country's property
rates in many Indian cities.

The very amenable borrowing rates encouraged individuals to avail of home loans to
buy residences, where actual property purchase had only been an option for the
considerably rich before that. This also brought down the average age of a home
purchaser from late 50s to mid-20s, a big change in the way India was buying houses
before.

This resulted in a huge demand for real estate all over the country post 2003. After
March 2005, Indian real estate rates displayed a seemingly unstoppable upward curve.
This was also related to the opening up of FDI in real estate. The market then
proceeded to expand at an unbelievable rate, both size-wise and price-wise - in three
years, prices were doubled, and so was the construction activity. Adding to this was
purchases of large land parcels by developers all over the country. Land banks of this
size were never created before. Developers were going places and exploring new
territories, and a sense of national players was building up.

Very often, under-construction projects fail to meet the obligations of the existing
regulators. There was need for transparency in real estate sector.

1.4 Scope of the Project

 To analyse the present status of Real Estate Sector in India and its economic
importance.
 To understand what property seekers want.
 To understand consumer perspective after implementation of RERA Act, 2016.

8|P ag e
1.5 Details of RERA

Real Estate (Regulation and Development) Act, 2016

An Act to establish the Real Estate Regulatory Authority for regulation and promotion of
the real estate sector and to ensure sale of plot, apartment of building, as the case may be,
or sale of real estate project, in an efficient and transparent manner and to protect the
interest of consumers in the real estate sector and to establish an adjudicating mechanism
for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals
from the decisions, directions or orders of the Real Estate Regulatory Authority and the
adjudicating officer and for matters connected therewith or incidental thereto.
The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament
of India which seeks to protect home-buyers as well as help boost investments in the real
estate industry. The Act establishes Real Estate Regulatory Authority (RERA) in each
state for regulation of the real estate sector and also acts as an adjudicating body for
speedy dispute redressal. The bill was passed by the Rajya Sabha on 10 March 2016 and
by the Lok Sabha on 15 March 2016. The Act came into force on 1 May 2016 with 59 of
92 sections notified.[1] Remaining provisions came into force on 1 May 2017. [2] The
Central and state governments are liable to notify the Rules under the Act within a
statutory period of six months.[3]Real Estate Regulatory Authority (RERA) Bill was
introduced by the UPA 2 government in 2013. [4] In December 2015, the Union Cabinet of
India had approved 20 major amendments to the bill based on the recommendations of
a Rajya Sabha committee that examined the bill.[5] The Bill had been referred to a select
committee, which had given its report in July 2015. [6] However, Congress, Left and
AIADMK had expressed their reservations on the report through dissent notes.The bill
got approval of the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March
2016

9|P ag e
1.5 Processes

A) Registration
The Real Estate Act makes it mandatory for all commercial and residential real estate
projects where the land is over 500 square metres, or eight apartments, to register
with the Real Estate Regulatory Authority (RERA) for launching a project, in order to
provide greater transparency in project-marketing and execution. For ongoing
projects which have not received completion certificate on the date of commencement
of the Act, will have to seek registration within 3 months. Application for registration
must be either approved or rejected within a period of 30 days from the date of
application by the RERA. On successful registration, the promoter of the project will
be provided with a registration number, a login id, and password for the applicants to
fill up essential details on the website of the RERA. For failure to register, a penalty
of up to 10 percent of the project cost or three years' imprisonment may be
imposed.[7] Real estate agents who facilitate selling or purchase of properties must
take prior registration. Such agents will be issued a single registration number for
each State or Union Territory, which must be quoted by the agent in every sale
facilitated by him.

B) Protection of buyers
The Act prohibits unaccounted money from being pumped into the sector and as of
now 70 per cent of the money has to be deposited in bank accounts through cheques
is now compulsory.[9] A major benefit for consumers included in the Act is that
builders will have to quote prices based on carpet area not super built-up area, while
carpet area has been clearly defined in the Act to include usable spaces like kitchen
and toilets

C) Real Estate Regulatory Authority and Appellate Tribunal

It will help to establish state-level Real Estate Regulatory Authorities (RERAs) to
regulate transactions related to both residential and commercial projects and ensure
their timely completion and handover. Appellate Tribunals will now be required to
adjudicate cases in 60 days as against the earlier provision of 90 days and Regulatory
Authorities to dispose of complaints in 60 days while no time-frame was indicated in
earlier Bill

10 | P a g e
 D) RERA RULE
 The Act under S.84 contemplates that within 6 months of the RERA Act being
enforced, State Governments shall make rules for carrying out the provisions
of the Act. The said Rules are to be notified by some of the State Government.
 As late as October 31, 2016, Central Government, released the Real Estate
(Regulation and Development) (General) Rules, 2016, vide Notification by
the Ministry of Housing & Urban Poverty Alleviation(HUPA). The Rules so
issued by the Central Government are applicable to the five Union Territories
without Legislature viz., Andaman & Nicobar Islands, Dadra & Nagar Haveli,
Daman & Diu, Lakshadweep, and Chandigarh. The Rules have been issued
after the prior release of Draft for comments
 As of 1 September 2018, Arunachal Pradesh, Mizoram, Meghalaya, Sikkim
and Nagaland have not notified the Rules. In the case of five north-eastern
states, the RERA Act is facing certain constitutional challenges as the land in
those states are community owned. West Bengal notified a similar law called
the West Bengal Housing Industry Regulatory Act, 2017, which came into
effect from 1st June, 2018.However, as of November 2018, many of the states
have not implemented the law in its true letter and spirit and failed to notify a
Permanent Regulator, Appellate Authority or a website. A chart showing the
implementation status by different states as of November 2018 can be seen.

11 | P a g e
CHAPTER 2: LITRATURE REVIEW

The Indian real estate sector has metamorphosed significantly over the last few years. The pace
of transformation has been largely accelerated by the Central government’s reformatory steps to
bring in ‘Acche Din’ in the realty sector. A new regulatory environment has been created post-
implementation of policies like DeMo, RERA, GST, Real Estate Investment Trusts (REITs), the
Benami Transactions (Prohibition) Amendment Act, 2016 and the Pradhan Mantri Awas Yojana
(PMAY), among others, over the last four years. These policies have brought in a paradigm shift
in the way real estate business is now conducted, thus, inching closer towards greater
transparency and accountability, financial discipline, and increased efficiency. Moreover, from
being an investors delight, the Indian realty market has evolved into being a ‘buyers paradise,’
aided further by banks which reduced interest rates on housing loans and price corrections in
select markets over the last few years. The q-o-q growth in both housing sales and new launches
in 2018 is a testimony to the fact that the negative impacts of DeMo, RERA and GST have
eventually subsided. ‘Real’ consumers are back from their wait-and-watch mode and ready to
take the plunge.

To understand what property seekers want in the near future and whether the current
macroeconomic environment is conducive for them to take the plunge in the property market or
not. Besides analysing the future trends based on buyers preference, the report also delves deeper
into the past behaviour of property buyers from the demand perspective

Knowing the perspective of consumers about real estate sector after RERA Act, 2016 will show
if real estate sector is going to boom or not. It is ver crucial to know as its one of the sector
which contributes a certain amount of percentage in GDP.

12 | P a g e
CHAPTER 3: RESEACH METHODOLOGY
3.1 Method of Data Collection

The Data collected for this research is by Primary research i.e the process of
gathering data directly from original sources as opposed to collecting information from research
that others have done. Information can be obtained by observation, by mail and telephone
surveys, or by face-to-face interviews.

3.2 Sample Size

Sample design The sample size is 200 and the sample is chosen using simple random sampling
technique so as to cover the groups of interest in the right proportions. Each individual is chosen
entirely by chance and each member of the population has an equal chance of being included in
the sample. Nature of sample Age group mainly focus in this research is from 20 – 50 and above
which is a working population and are in the occupation of business, professionals and
employees or any having any other source of income who are interested in buying real estate
property having annual income from Rs 2,50,000 -10,00,000 and above

3.3 Data Analysis and Technique

Descriptive research includes surveys and facts findings enquiries of different kinds. The major
purpose of Descriptive research is the description of the state of affairs, as it exists at present. It
provides the data about the population or universe being studied.

Descriptive research is used when the objective is to provide a systematic description that is as
factual as accurate possible. In this project we have to find whether outdoor advertising
influences people to buy products & services, therefore our research is descriptive

13 | P a g e
CHAPTER 4: DATA COLLECTION, ANALYSIS &
INTERPRETATION
4.1 THE TYPE OF DATA NEED

Sources of Data For our study, I collected both Primary as well as Secondary Data:

1. Secondary Data was collected from internet browsing various websites.

2. Primary Data was collected through questionnaires Tool used for data gathering Data was
gathered through self-administered questionnaires.

A majority of the questions were objective in nature in the form of multiple choice questions or
ratings

4.2 THE DETAILS OF THE DATA COLLECTED

Scope of Study Real estate (regulation and development) Act is a significant and crucial law
which will impact the whole real estate sector and it is going to change the whole picture of real
estate industry forever. It has made real estate industry more transparent. RERA has made the
consumers real winner of the industry and also it is going to protect them from unscrupulous
activities. Research had RERA has generated a trust in the mind of the consumer to invest in real
estate. Home buyers are agreeing to the clauses of RERA they are going too protected with
regulatory body. Major home buyers who are currently now focusing on price will shift to think
about amenities, brand, and location. This study is only complaint towards RERA and real estate
consumers, real estate promoter and real estate agent.

14 | P a g e
4.3 PROCESSING OF THE DATA FOR ANALYSIS

1. AGE GROUP

Age Group wise distribution of sample Data Analysis and Interpretation Introduction Survey was
conducted on consumers of residential real estate property to know what those factor which
impact consumer are buying behavior due to implementation of RERA. Questionnaire are filled
by consumer which consist of 200 sample size. Following are interpretation of the question
asked to consumers. 1. Interpretation Out of 201 responses, it is observed that 18.4% respondents
(i.e. 31 people) belong to the age group of 20-30 years, 43.8% respondents (i.e. 88 people)
belong to the age group of 31-40 years, and 28.9% respondents (i.e. 58 people) are between 41-
50 years of age, whereas 18 people (9%) belong to the age group of 51 and above. Middle aged
people (31-50 years) are comparatively more into buying properties, the main reasons for buying
a property being either for living or investment which surely has to be backed by the ability to
spend. The youth (20-30 years) is seen to have relatively lower purchasing power than middle
aged buyers due to less savings.

15 | P a g e
2. GENDER

Interpretation Responses on the gender are: Out of 201 responses, 162 respondents i.e. 80.6% are
males and only 39 respondents i.e. 19.4% are females. On the basis of gender, it is seen that
approximately 80% buyers are males and rest 20% are females. The reason behind this is the
working class ratio between men and women, less females belong to the working class and men
being the ones working and earning.

16 | P a g e
3. OCCUPATION

Interpretation It is surveyed that out of 201 responses, 81 respondents (40.3%) are employees,
the occupation of 74 respondents is business and 41 respondents (20.4%) are professionals. 5
respondents (2.5%) have selected "others" i.e. occupation rather than employee, business and
professionals. Due to research it is found that maximum people are employee who are engaged in
different industry. The maximum employees who are in the middle age are focused to buy a
house on their own. The results shows that in the age group of 30-40yrs maximum people
purchase real estate property for their end use.

17 | P a g e
4. ANNUAL INCOME

Interpretation Out of total 201 responses, the annual income of 34 respondents (16.9%) is
between Rs 2,50,000 to 5,00,000. 95 respondents (47.3%) have an annual income ranging
between Rs 5,00,000 to 10,00,000, whereas 72 (35.8%) people have an annual income of Rs
10,00,000 and above. The major chunk belongs to employees so it can said that most of them
belong to the 5 to 10 lacks annual income class, many can also belong to annual income of 10
lacks and above class. The income being the most important factor in purchase of any property,
the ones with annual income of 2.5 to 5 lacks may or may not be able to afford the increasing
prices of properties these days due to inflation and other factors and one of the important factor
is that most of time people in this category apply for housing loan or else they will prefer
subvention scheme offered by promoters and they get rejected by the bank due to the eligibility
factor because of their income slab People take home loans these days but the loans are only
sanctioned on the basis of income and age factor, so the ones with higher income are able to
afford and spend more on properties due to location and amenities being a very important factor.
The another important aspect with reference to income is savings because there has to be an
ample amount of savings for purchasing any property, the ones who save a significant amount of
money from their monthly income are able to afford flats with better facilities than the ones who
save less and cannot afford.

18 | P a g e
5. RANKING CHART

Interpretation A total number of 201 people were surveyed and it is found that among these 5
parameters : 1) brand name, 2) location, 3) price, 4) builder's past and 5) amenities, most people
(84 respondents) selected "price" as the highest parameter by ranking it "1st" which was then
followed by location (76 respondents) as first ranking, brand name (40 respondents) as first
ranking, amenities (5 respondents) as first ranking and builder's past (3 respondents) as first
ranking. Research has found that the maximum people from the sample space of 200 are
employees falling into the age group of 30 to 40 years. The most important factor for the
purchase of a real estate property is price, because the first thing which comes into the mind of a
person is whether the property is affordable or not. The second important factor is location as the
area and the facilities in that area play a very crucial role in the buyer’s mind. Out of 200 sample
size, 84 people have ranked price 1st , whereas 76 people have ranked location as their first
preference, as there is not much difference in these figures so we can interpret that location and
price both play a crucial role. 40 people have ranked brand name 1st and this clearly means that
these people are the ones belonging to higher income group for whom price is not a constraint
and they cannot compromise on quality just because of higher prices, these people generally
belong to the business (entrepreneurs) and professionals. 113 people have ranked location as 2nd
most important factor. It is also seen that 2.5% of people have ranked amenities as their first
preference, amenities are also important while buying a real estate property but not as important
as location and price.

19 | P a g e
6. CONSUMER PREFERRING CONSULTANT WHILE BUYING

Interpretation On the preference of consulting a real estate broker while buying property, 95
people said "yes". There were 41 people who said "no" and 65 respondents may or may not
prefer a consultant. According to the research, maximum number of people prefer consulting a
real estate brokers who are also known as channel partners. In the survey, it is found that 47.3%
people out of 200 would want to consult real estate brokers. Due to the implementation of RERA
Act, it is mandatory for all the real estate brokers to get registered themselves with RERA. Due
to this new clause of registering under RERA, it will prevent the buyers from getting mislead by
the real estate brokers. They will only be allowed to disclose the information provided by the
developer which will be available on the RERA website. The brokers or the developers who try
to mislead the buyers by providing any false information or by not fulfilling what has been
promised will have to pay penalty, which is mentioned in the clause. RERA will increase the
level of confidence in the psyche of consumers and they will be able to trust the real estate
brokers more easily because of no misrepresentation. Most people prefer to consult a real estate
agent due to the lack of knowledge in buying properties. So it can be concluded that as time will
pass people will be more familiar with RERA, which might change the decision of the ones
saying “Maybe” to consult a broker.

20 | P a g e
7. SAMPLE FLAT BEOFRE BUYING

Interpretation Out of 201 respondents, 197 people would like to see the sample flat before buying
and a very small number of people i.e. 4 (2%) would not like to see the sample flat. There are
very few people who would say "no" to see a sample flat before buying. It is very important for
any buyer to see the sample flat before buying because it gives an overview of the size,
spaciousness, the look and it increases the chances of purchase decision just because it is now in
the mind of the buyer. Promoters might upload wrong and incorrect information about the flat
but it is not possible to fake it when there is a sample flat which a consumer sees before buying.
When a buyer sees a sample flat, he might like it or not, but if he likes it then it becomes a dream
for him to own that flat.

21 | P a g e
8. PEOPLE COMFORTABLE WITH NOT SO WELL BUILDER

Interpretation When asked about if people are comfortable with not so well known builders who
are registered with RERA, most of them were comfortable and 13.4% (27) of people would not
feel comfortable. Out of 200 responses, 86.6% said “yes” whereas 13.4% said “no”. It is
mandatory for every developer and real estate broker to register under RERA. They cannot sell
any property which is not registered under RERA. RERA is the only body of regulation of real
estate. The builder cannot misrepresent or fake any information as all the details will be uploaded
on the RERA website, which will include location, price, amenities, brand name, etc. The age
group of people from 26 – 35 years usually buy their first home during this age period and price
being the most important factor rather than brand value, so they will be more informed about
everything and cannot be mislead. The developers with low brand value cannot fool the buyers
or cheat them because under RERA all the brands or names attached would be treated the same.
All the updates regarding current status of project, possession date, CLP and Subvention
payments schedule will be provided on the website. The 13.4% saying “no” are the business
category people because for them the brand matters and not the price.

22 | P a g e
9. WETHER RERA REGISTERED OR NOT

Interpretation On surveying 201 people, 171 would like to check whether the project is registered
under RERA or not and 30 people would not bother about the registration of the project under
RERA. If a person is buying a product, he would preferably like to know whether the product is
genuine or not, whether it will satisfy his wants or not. In the same way, before buying a real
estate property, a customer would surely like to know whether he is investing in the right place
or not. This privilege of checking the project details which is registered in RERA is now
possible. RERA has given an opportunity where a customer can go on RERA website and by just
entering the registration no of developer’s project, he can get all the information related to
project and get a clear picture of the project in which he is interested to invest. As buying real
estate property is expensive and it’s a long term decision of any consumer, so they want that
there money should go in the right hands. Maximum people would want to check whether the
project is registered under RERA or not. If the project is registered under RERA, it gives an
assurance to the customer to go for it. Figure 6.9: Consumer who like to check registration of
project under RERA

23 | P a g e
10. CONSUMERS AGREE OR DISAGREE WITH RERA CLAUSE

Interpretation Maximum of people are strongly agree with clause 1 which is (The promoter
should disclose all details of ongoing real estate projects as required) out of 201 sample size
there are 124 people who are strongly agreed with this clause and 77 people agree with this
clause. Whereas 72% of people agree with the clause of promoter of an ongoing project cannot
sell or advertise, unless he register the project under RERA. About 26.5% of people are confused
with clause of Money collected from customers towards stamp duty, registration, infrastructure
charges, parking charges etc., are required to be deposited in the designated bank account (70%),
as they are neither agreeing or disagreeing with this clause. Out of 100% there are 47.5% of
people who strongly believe there should be penalty for promoters for delaying the project.
57.5% of people strongly agree that per square feet rate should be calculated on carpet area not
on saleable area. Clauses which are mentioned in RERA. Out of 201 responses, not a single
respondent has disagreed on any of the clause. RERA has made sure that promoters should
disclose all the details of the project and 124 out of 201 respondents strongly agree with this
clause, which shows that RERA is going to create a keen interest in consumer's buying behavior.
There will be penalty for promoters who delay the project and more than 140 respondents agree
with this clause. Per square feet area should be calculated on carpet area and not on saleable area,
this clause has blown buyer's minds towards buying real estate property it will surely influence
the purchasing decisions of consumers.

24 | P a g e
11. REPUTED BRAND WITHOUT RERA

Interpretation When asked about if people will go with well-known or reputed brands in real
estate who are not registered with RERA, the response received was: 1) Yes - 139 people
(69.2%). 2) No - 62 people (30.8%). Maximum responded do not want to go with unregistered
well-known developers. Consumer had shown there trust on the RERA conditions towards
developers that there every real estate construction should be RERA complained. So RERA has
impacted consumer’s buying decision that they do not prefer well-known developers if they are
not registered under RERA.

25 | P a g e
12. WOULD GO WITH LESS KNOWN BRAND WHO IS RERA REGISTERED

Interpretation It is observed that 166 out of 201 respondents would go with not so well known
builders who are registered with RERA, whereas 35 respondents would not. Due to
implementation of RERA and due to its rules and regulation people have shown interest in the
not so well known or low brand value builders if they are registered with RERA. Figure 6.12:
Consumer who wants to go with low brand value builder registered with RERA

26 | P a g e
13. PRICE INCREMENT AFTER RERA

Interpretation RERA might lead to price increment of the properties, 124 people out of 201 are
comfortable with this and 77 people (38.3%) are not comfortable with prices being increased.
Major chunk of people are comfortable with price increment due to implication of RERA, it
shows that if the process of construction is on time and the consumer are getting exact amenities
which they were promised then they are willing to pay more Figure 6.13: Consumer who are
comfortable with price increment

27 | P a g e
14. MISINTERPRETATION OF PROMISED NOT DELIVERED

Interpretation When asked about the reaction of people in case of misrepresentation of something
which was promised and not delivered, 45.8% of respondents would demand for replacement. 58
people would demand for compensation, 36 people would file a complaint, whereas 7.5% people
don't know. Mostly people have agreed to demand for replacement. In earlier days people could
not raise their voice against the promoter if any misrepresentation has done, but due to
implication of RERA now people can file complaint to the RERA executives and the developers
has to compensate and provide replacement or ready to bare the consequences. Figure 6.14:
Consumer's Reaction on Misrepresentation

28 | P a g e
15 WILL RERA RESULT TRANSPARENCY

. Interpretation Out of 201 respondents, 70.6% think that RERA will result in transparency. 32
people are not sure, whereas 27 people feel that RERA will not lead to transparency. Out of 201
people surveyed 70.6% believe that RERA will result into transparency in real estate industry but
also there are few people who are not sure that it may. It is found that RERA will surely change
the game. 142 people have shown trust on RERA that it will bring transparency the whole game
and bring discipline. Figure 6.15: Consumer who believes in transparency

29 | P a g e
4.5 ANALYSIS OF DATA

Findings and Recommendations • Maximum consumers are in the age group of 30 – 50 yrs. •
Maximum respondents are employees followed by business oriented people. • Maximum number
of respondents are of employee category with annual income of 5,00,000 - 10,00,000 rs which
shows that price is the most important factor followed by location and brand name. • The
consumers are concerned whether the project is registered under RERA or not. It does not matter
either project is of big brand builder or any small builder. • Consumers are strongly agreeing
with the clauses mentioned in the act and those clauses are generating positive factor in
consumers mind to invest in real estate property. • Research shows that consumers are interested
to invest in small builder’s projects if they are registered under RERA. • Maximum number of
consumers believes that RERA is going to change the picture of real estate industry and it will
result in transparency. Recommendation RERA had changed the dimension of real estate sector.
Developers are in fear about the norms in the act. In this research it is concluded that RERA has
created a trust factor in the ideology consumers while buying real estate property. It is
recommendate to developers that they should disclose their proper track record of the projects.
Real estate agents should promote only RERA registered projects and disclose only that
information which is provided by developers on RERA website.

4.6 CONSOLIDATED RESULTS

Conclusion RERA is enforcing the developers to get registered which has created a fear in the
industry. While buying real estate property, consumers are more concerned about even a small
thing. RERA will throw a transparent picture of industry where a consumer can analyze the
choices of property with the help of RERA . RERA has impacted positively on the consumer’s
perception of buying a real estate property. survey was conducted to conclude the impact of
RERA on consumer buying behavior, out of 200 respondent almost people are strongly agreeing
with the clauses mention in the Real Estate (Regulation and Development)Act, 2016 and it has
enlarged confidence in the perception of consumer while buying real estate property. RERA has
made homebuyers king of the industry. It has given first priority to the homebuyers. This
regulatory body has made real estate industry more transparent. There is scope of more
professionalism in this sector as the Developers and Real estate agent both have to adhere the
norms and conditions of RERA.

30 | P a g e
CHAPTER 5: RECOMMENDATIONS & CONCLUSION
5.1 Learning from the Project

Conclusion RERA is enforcing the developers to get registered which has created a fear in the
industry. While buying real estate property, consumers are more concerned about even a small
thing. RERA will throw a transparent picture of industry where a consumer can analyze the
choices of property with the help of RERA . RERA has impacted positively on the consumer’s
perception of buying a real estate property. survey was conducted to conclude the impact of
RERA on consumer buying behavior, out of 200 respondent almost people are strongly agreeing
with the clauses mention in the Real Estate (Regulation and Development)Act, 2016 and it has
enlarged confidence in the perception of consumer while buying real estate property. RERA has
made homebuyers king of the industry. It has given first priority to the homebuyers. This
regulatory body has made real estate industry more transparent. There is scope of more
professionalism in this sector as the Developers and Real estate agent both have to adhere the
norms and conditions of RERA.

5.2 Limitations

1. The survey was restricted to selected areas in Mumbai City only.

2. The time duration of this survey was 30 days only.

3. The response from the respondents was fair enough but not up to the mark or good enough.

4. This project was only restricted to the residential properties & not commercials & others.

31 | P a g e
 QUESTIONNAIRE

1. Name : ________________________________________

2. How old are you?

o 20 – 30 years old

o 31 – 40 years old

o 41 – 50 years old

o 51 years old and above

3. Gender : ____________

4. Occupation :

o Professionals

o Business

o Employee

o Others

5. Annual Income :

o 50,000 below

o 51,000-1,00,000

o 1,00,000 above

32 | P a g e
6. Rank below following what do you see first when you buy a property?

o Brand Name

o Location

o Price o Builder’s Past

o Amenities

7. Do you prefer consultant (Real estate brokers) while buying property?

o Yes

o No

8. Would you like to see sample flat before buying?

o Yes

o No

9. Do you feel comfortable with not so well known builders who is registered with RERA?

o Yes

o No

10. Would you like to check whether the project is registered under RERA?

o Yes

o No

33 | P a g e
11. Please state your level of agreement or disagreement in respect of RERA clauses which you
think is beneficial for the consumer?

o Clauses Strongly Agree

o Agree
o Neither Agree or Disagree
o Disagree
o Strongly Disagree

 The promoter should disclose all details of ongoing real estate projects as required
 The promoter of an ongoing project cannot sell or advertise, unless he register the project
under RERA
 Money collected from customers towards stamp duty, registration, infrastructure charges,
parking charges etc., are required to be deposited in the designated Escrow account (70
%)
 There is penalty for promoters for delaying the project Per square feet rate should be
calculated on Carpet area not on salable area

12. Will you go with the reputed / well-known brands in real estate who is not registered with
RERA?

o YES

o No

13. Will you go with not so well known / with little or low brand value builders who is registered
with RERA?

o Yes

o No

14. Are you Comfortable with the price increment of the property after the implementation of
RERA?

o Yes

o No

34 | P a g e
15. What will be your reaction in case of misrepresentation of something which was promised
and not delivered?

o file a complaint

o Demand for replacement

o Demand for compensation

o Don’t know

16. Do you think RERA will result in transparency?

o Yes

o No

35 | P a g e
 BIBLIOGRAPHY

 https://maharera.mahaonline.gov.in/

 https://en.wikipedia.org/wiki/Real_Estate_(Regulation_and_Development)_Act

 www.anarock.com

 www.economictimes.com

36 | P a g e