NEW DELHI: Real estate regulatory bodies are urging developers to implement transparent practices and refrain from misleading advertisements, emphasizing that failure to comply with the Real Estate (Regulation and Development) Act (RERA) could result in regulatory repercussions.
During a FICCI real estate conference in New Delhi, Anand Kumar, chairman of Delhi RERA, highlighted the need for developers to ensure their project advertisements accurately depict the offerings without relying on unverifiable claims.
“Advertisements must be realistic,” he stated. “Developers should provide clear details such as the covered area and refrain from marketing units exclusively based on super area measurements.” He pointed out that a lack of transparency often causes disputes between buyers and builders.
Kumar also warned against offering assured returns, indicating that such schemes are prohibited under RERA. “Any financial incentives must be transparent and law-compliant; buyers should not be misled by promises of guaranteed returns,” he advised.
Kumar emphasized that developers should not accept more than 10% of the property cost before signing a registered sale agreement, considering it a vital protection for homebuyers. He encouraged both developers and buyers to familiarize themselves with RERA laws to minimize conflicts.
He also raised concerns regarding sales of “virtual space” and fractional ownership structures, urging buyers to verify legal ownership before investing.
According to UP-RERA data, Uttar Pradesh’s real estate sector maintained growth in 2026, with increased project registrations, investments, and proposed units compared to the same period the previous year, following steady improvement across key indicators from 2023 to 2025.
He noted that real estate contributes about 12-13% to Uttar Pradesh’s gross state domestic product, exceeding the national average, and mentioned that enhanced regulatory mechanisms have boosted buyer confidence. Bhoosreddy added that stricter enforcement has resulted in a decrease in disputes, with daily cases reported to the regulator dropping significantly over the past two years.
He observed that project approvals have surged in recent years, from approximately 197 in 2023 to 259 in 2024 and 308 in 2025. This year alone, registrations have surpassed 100 and are projected to exceed 400 by year-end.
Bhoosreddy identified financing constraints as a significant challenge, urging financial institutions to increase support for developers through term lending. Simultaneously, he cautioned builders against delays and financial mismanagement that could lead to insolvency proceedings, adversely affecting both developers and homebuyers.
Both officials stressed that stronger compliance, enhanced transparency, and greater awareness among stakeholders are vital for sustaining growth in the real estate sector.
