Is RERA Applicable to Commercial Real Estate Projects?

The Real Estate (Regulation and Development) Act, 2016 (RERA) is primarily designed to protect the interests of homebuyers and ensure transparency in the real estate sector. While RERA is commonly associated with residential real estate projects, it also applies to commercial real estate projects under certain conditions.

1. RERA Applicability to Commercial Projects

RERA applies to both residential and commercial real estate projects that meet specific criteria:

• Land Area: Commercial projects with an area of 500 square meters or more must register under RERA.
• Number of Units: Projects involving eight or more units, whether residential or commercial, must be registered under RERA.

For instance, if a commercial building involves multiple units or floors to be sold or leased to different buyers, it will be subject to RERA.

2. Key Provisions for Commercial Projects Under RERA

Similar to residential projects, commercial real estate developments must comply with RERA's provisions, such as:

• Project Registration: Developers must register their commercial projects with RERA before advertising or selling.
• Transparency: RERA ensures transparency in agreements, timelines, and financial disclosures.
• Timely Completion: Developers are obligated to deliver projects on time, and buyers have legal recourse in case of delays.
• Defect Liability: RERA holds developers accountable for structural defects for up to 5 years, including commercial properties.

3. Benefits of RERA for Commercial Projects

• Investor Protection: RERA ensures that investors and buyers are protected from delays, fraud, and poor construction quality.
• Legal Accountability: Developers are legally bound to adhere to timelines and deliver projects as promised.
• Credibility and Trust: RERA registration adds credibility to commercial projects, attracting investors and tenants.

Conclusion

RERA is not limited to residential real estate. It also applies to commercial projects that meet the specified criteria, ensuring greater transparency, accountability, and legal protection for buyers and investors.