The Real Estate Regulatory Authority (RERA) was created to protect homebuyers and make the real estate market fair. However, many are unhappy with how RERA is acting. Builders in Gujarat are accused of ignoring rules and charging unfair prices. Homebuyers say that RERA is not doing enough to help them.
Many builders are still charging high prices based on the super built-up area instead of the carpet area, which is supposed to be the standard. This means that homebuyers often pay much more than expected. For example, builders are charging more than 40% in extra payments, known as on-money. These illegal payments go unchecked by RERA, leaving buyers frustrated.
In its records, RERA says that property prices in Gujarat are around ₹54,139 per square metre for the year 2024-25. However, in the market, actual prices reach up to ₹80,000 per square metre. When builders add super built-up charges, prices can go as high as ₹1.20 lakh per square metre. This discrepancy makes it hard for many people to afford homes.
For the middle class, buying a house is becoming a distant dream. Prices have increased significantly. In mixed-use projects, rates rose from ₹35,785 in 2020 to ₹51,247 per square metre in 2024-25. Actual selling prices now hover around ₹7,500 to ₹8,000 per square foot.
Construction costs have also risen. They increased from ₹26,677 per square metre in 2017-18 to ₹40,691 in 2024-25. Despite this, builders charge even higher prices for design and lifestyle features. RERA has not enforced strict rules on price transparency or cost disclosures, creating a significant gap between the official and actual market prices.
Since 2017, over 5,300 real estate projects have been registered in Gujarat. These projects cover more than 8.38 lakh housing units, but around 2.5 lakh units remain unsold. Builders are not lowering prices because their profits are still high. Selling just one unit can cover the costs of unsold units.
It takes longer for larger projects to sell out. Smaller developments often clear their inventory in 3-4 years, while larger ones may take up to 6 years. Experts believe that if builders were required to disclose actual land and construction costs, it would reveal how much profit they are making.
Some argue that rising raw material costs are to blame. For instance, the price of steel has risen from ₹48,000 per ton in 2020 to ₹57,000 in 2025. Cement prices have remained stable, while aluminium and glass costs have increased by 50-60%. However, these increases do not fully explain the sharp rise in property prices, especially given the builders’ high profit margins.
Many believe that RERA is not fulfilling its duties. Instead of regulating the market, it appears too lenient. Until RERA takes action against illegal pricing and requires clearer cost structures, affordable housing will remain an unfulfilled promise for many in Gujarat. Homebuyers are left waiting for the change that RERA was meant to bring. The hope for fair pricing in the real estate market is fading as prices continue to soar without oversight.
Leave a Reply