Real estate regulators in India have urged property developers to adopt greater transparency in marketing and sales practices, warning that violations of the Real Estate (Regulation and Development) Act, commonly known as RERA, could lead to regulatory action.
Officials said developers must provide clear and accurate information to homebuyers, particularly regarding the actual size of apartments. Authorities stressed that projects should disclose the “covered area” or carpet area of a property, rather than relying primarily on “super area” measurements, which can include shared spaces such as corridors, clubhouses and lobbies.
Regulators said the lack of clarity over area calculations has been a recurring source of disputes between buyers and builders.
The warning also extends to promotional schemes offering “assured returns” on property investments. Officials said such promises are not permitted under RERA and could mislead buyers into believing fixed returns are guaranteed.
“Any financial incentives must be transparent and compliant with the law,” regulators said, adding that developers should avoid advertisements that create unrealistic expectations among consumers.
Authorities further reminded developers that they are prohibited from accepting more than 10% of the cost of a property before executing a registered agreement for sale. The provision, introduced under RERA, is intended to protect homebuyers from excessive upfront demands and reduce the risk of project-related disputes.
Industry experts say the latest regulatory push reflects growing efforts to improve accountability and consumer confidence in India’s property market, which has faced criticism in the past over delayed projects, opaque pricing structures and misleading marketing claims.
Regulators also encouraged both developers and homebuyers to familiarise themselves with RERA provisions to ensure smoother transactions and minimise legal disputes.
RERA, introduced in 2016, was designed to bring greater transparency and standardisation to India’s real estate sector by mandating project registration, disclosure norms and stricter compliance requirements for developers.
