WHAT 2025 REVEALED ABOUT INDIA’S HOUSING GOVERNANCE

RERA: WHY THE LAW NEEDS A SECOND LIFE When Housing and Urban Affairs Minister Manohar Lal Khattar launched the Unified RERA portal in September 2025, the subtext was unmistakable. Nearly a decade after the Real Estate (Regulation and Development) Act came into force, the regulator needs recalibration. RERA undeniably changed India’s real estate landscape. Mandatory project registration, escrow of buyer funds and disclosure norms forced transparency into a sector long known for opacity. For the first time, homebuyers had a statutory authority to approach. Yet, implementation has remained uneven.

States adopted RERA at different speeds and with varying degrees of rigour, creating regulatory gaps. A recurring criticism is that RERA lacks teeth. While authorities can pass refund or penalty orders, enforcement depends on district administrations and police machinery, often delaying relief by months or years. The judiciary has not minced words. In September 2024, the Supreme Court Justices Surya Kant and Bhuyan described RERA authorities as a “rehabilitation centre for former bureaucrats” lacking sector expertise. Another bench in March 2025 called the regulator’s performance “disappointing”, acknowledging that the law has fallen short in execution. Project delays remain the most visible failure.

As of 2025, an estimated 4.8 lakh housing units across India are delayed by over three years. Extensions granted on weak grounds, stalled redevelopment projects, and appeals that drag on endlessly have left buyers trapped between EMIs and rent. Institutional weaknesses add to the problem. Many RERA bodies are understaffed. Smaller projects, redevelopment schemes and secondary market buyers often remain outside effective oversight. RERA 2.0, now widely discussed, must move beyond compliance to outcomes. Stronger enforcement powers, uniform processes across states, and a national framework for resolving stalled projects are no longer optional. The Unified RERA Portal is a start, but without legislative backing and political will, transparency will remain theoretical.

FROM SANCTIONS TO KEYS: THE LAST-MILE PUSH UNDER PMAY

If RERA is about fixing the market, PMAY–Urban 2.0 is about fixing delivery. Launched in September 2024, PMAY–Urban 2.0 sharpened the mission of “Housing for All” with a blunt objective: no eligible urban household should be left out. Angikaar 2025, running from September to October this year, takes that mandate to the ground. Unlike earlier campaigns, Angikaar is deliberately people-facing. Officials are stepping out of offices into slums, chawls and informal settlements to identify beneficiaries, resolve documentation gaps and accelerate construction. The priority is completing nearly 20 lakh houses already sanctioned but still under construction, homes tied to families who have waited years for possession.

Special Focus Groups are central to the drive. Safai karamcharis, street vendors under PM SVANidhi, artisans covered by PM Vishwakarma, Anganwadi workers and construction labourers are being actively identified and supported through the application process. Housing delivery is also being linked with dignity and sustainability. PM Surya Ghar benefits are being extended to PMAY homes, while Grih Pravesh ceremonies are reinforcing ownership and pride. Banks and housing finance companies are being mobilised to support loans for over 8.5 lakh sanctioned houses. Since inception, PMAY has sanctioned more than 1.2 crore urban houses, with 94 lakh already delivered. Under PMAY–Urban 2.0, one crore additional families are set to receive support of up to Rs. 2.5 lakh per household.

RATE CUT RELIEF: A TAILWIND FOR HOUSING DEMAND

Policy momentum has been reinforced by monetary support. The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on December 5, 2025 voted unanimously to reduce the policy repo rate by 25 basis points (bps) to 5.25% with immediate effect has eased borrowing costs at a crucial moment for housing demand. “We welcome the RBI’s positive move to cut rates by 25 bps, as it signals growing confidence that inflation will remain low on a durable basis. The decision also reflects a greater willingness to support growth more assertively.

The reduction in borrowing costs should offer timely relief to the real estate sector, where lower home loan rates can help sustain momentum in end-user demand and improve developers’ cost structures. We hope this will be instrumental in boosting affordable and mid-income housing sales, which have been witnessing a sequential decline over the past few quarters.” Shishir Baijal, International Partner, Chairman & Managing Director, India Knight Frank “The RBI’s rate cut is a welcome move that comes at a crucial time for the economy. It will increase purchasing power in the hands of consumers and allow households to access loans, including home, car, and personal loans, at more comfortable rates.

This is likely to stimulate demand across categories and support strong sales momentum in the last quarter of the financial year. The reduction in borrowing costs also helps businesses maintain growth plans and continue investing confidently in both domestic and export markets, especially in the absence of a trade agreement with the United States. Additionally, the move supports the strength of the rupee and reinforces stability in the economic environment, contributing to broader financial confidence.

By improving liquidity, encouraging consumption and strengthening market sentiment, this rate cut plays a meaningful role in sustaining India’s growth trajectory and supporting the long-term health of the economy.” Binitha Dalal, Founder and Managing Partner, Mt. K Kapital “The RBI’s decision to cut policy rates will significantly support housing demand in Tier 2 and Tier 3 cities, where affordability plays a central role in purchase decisions and homebuyers are particularly sensitive to EMI movement. Improved borrowing costs are expected to bring greater confidence to end users and accelerate decision-making among families who have been evaluating long-term ownership.

These markets have already seen strong growth in plotted developments, mid-range apartments and integrated townships, and a lower interest rate environment could help deepen demand further and widen participation. For developers operating in emerging cities, reduced funding pressure also helps maintain construction momentum and encourages investment in new residential supply.” Amrita Gupta, Director, Manglam Group