Be Realistic in Your Advertisements: RERA Officials to Real Estate Builders

New Delhi, May 7: RERA officials have asked developers to avoid misleading advertisements and ensure compliance with regulatory provisions, including agreement for sale and disclosure norms. They also flagged issues such as assured returns and super area-based selling.

Key Advisories for Builders

Speaking at a FICCI real estate conference, Anand Kumar, chairman of Delhi RERA, said developers should ensure that project advertisements accurately reflect the offering. "Advertisements should be realistic. Developers must clearly disclose details such as the covered area and avoid selling units solely on super area basis," he said, adding that lack of transparency often leads to disputes. He also cautioned against offering assured returns, stating such schemes are not permitted under RERA.

Agreement for Sale and Financial Safeguards

Kumar emphasised that developers should not accept more than 10% of the property cost before executing a registered agreement for sale, calling it a key safeguard for homebuyers. He also flagged issues related to "virtual space" sales and fractional ownership structures, cautioning buyers to verify legal ownership frameworks before investing.

UP RERA Chairman on Growth and Challenges

Sanjay R Bhoosreddy, chairman of Uttar Pradesh RERA, said regulatory oversight has helped improve compliance and consumer protection, particularly in ensuring timely project completion. He noted that real estate contributes about 12-13% to UP's gross state domestic product, higher than the national average. He flagged financing constraints as a key challenge, urging financial institutions to step up support for developers through term lending.

Project Registration Trends

Bhoosreddy cited that project registrations have risen significantly from around 197 projects in 2023 to 259 in 2024 and 308 in 2025. Registrations have already crossed 100 projects in the current year, and are expected to exceed 400 by the end of the year. He cautioned builders against delays and financial mismanagement that could push projects into insolvency proceedings.