RERA, Bigger Scale, Faster Sales: Why Southern Builders Are Moving North

For many years, real estate builders in India worked mostly in their own area. Builders in South India built mostly in the South. Builders in North India built mostly in the North. Builders did not move to new places easily. They faced unclear land rules. They also faced land records that were hard to confirm. Many approvals took a long time. This made a big expansion risky. It also helped small local builders. Many of them owned land, but many could not finish big projects smoothly.

What changed?

Two big changes made the system clearer.

1) RERA (started in 2016)

RERA made stricter rules for real estate projects. It made builders share more correct project details. It also protected buyers’ money. RERA tells builders to keep 70% of customer money in a bank account called an escrow account. Builders must use this money mainly for that same project. This rule reduces the wrong use of funds.

2) Digital land records

The government digitised land records in many areas. This improves access to land information and makes ownership checks clearer. It helps reduce disputes and uncertainty.

These changes also pushed the market to become more organised. Many smaller builders slowed down or left because they could not follow the rules or manage money well. Some also faced issues like using customer money in the wrong way.

Why South Indian builders want to work in North India

Many people see South India builders as organised. They plan carefully. They follow processes. They try to deliver projects on time. Clear rules make it easier for them to enter new cities. So they now explore markets in North, West, and East India.

Northern markets also give big growth chances. Niranjan Hiranandani said buyers in the North trust builders who deliver on time and build good-quality homes. He said buyers now like branded builders more. He said RERA transparency supports this. He also said NCR infrastructure is improving, and demand for mid and premium homes is rising. He said northern markets also give bigger projects and faster selling, and developers can grow faster with institutional money.

Mallanna Sasalu said South Indian builders often work in a customer-first way. He said customers can talk more directly with builders because there are fewer intermediaries. This improves trust and responsibility.

Praveer Shrivastava said listed builders want to enter new cities to grow faster and increase sales.

Main reasons South builders go North:

• RERA makes rules clearer
• Digital records make land checking easier
• Buyers trust branded builders more
• NCR improves, and more people want mid and premium homes
• Northern markets allow big projects and faster sales

What problems builders still face

Builders still face problems when they enter a new region. Murali Malayappan said they must understand the local market and what buyers prefer. They also need to learn the local rules, manage approvals, and build strong local partnerships. He added that developers face these issues in any new region, not only in North India.

Labour and workers

Builders also need workers. Worker supply and skill can change across regions. Hiranandani said the South often has steadier workers and nearby technical schools. He said the North uses more workers who travel from other states. This can cause a worker shortage at times.

Training programmes try to improve skills. Groups like NSDC, NAREDCO, and CREDAI support training. Still, NAREDCO says India may face a shortage of nearly two million skilled construction workers in 2024–25.

Arun Bharathi said Gulf countries attract workers and raise wage pressure in the South. He said South Indian construction wages rise about 8–10% every year. Arun Bharathi said wages in the South are rising, so labour is becoming expensive and harder to get. He added that North India can find workers more easily, but skill levels are not always consistent. He also pointed to 2024 data from the Ministry of External Affairs, which shows Uttar Pradesh and Bihar are major states sending workers to GCC countries.

How RERA helps buyers and builders

RERA makes builders follow better rules. It forces project registration and clearer disclosures. It keeps 70% of customer money in escrow accounts. It also standardises carpet-area rules so that buyers can compare homes more clearly.

Bala Ramajayam said RERA makes real estate more transparent and accountable. He noted that RERA can punish delays, which helps buyers feel safer. He also mentioned Tamil Nadu’s single-window approval system, which can make approvals faster and clearer.

Mallanna Sasalu added that RERA protects both buyers and developers. If buyers fail to pay on time, they may lose the right to question the developer about delays or certain violations.

Partnerships and joint work

Builders often grow faster with partnerships. GTB Urban Developers from Chennai works with the Hiranandani Group to build a senior citizens’ township in Oragadam, Kancheepuram district. Bharathi said big builders bring experience and infrastructure knowledge. He said specialised builders bring speed and new ideas.

Shrivastava said many landowners now choose joint development agreements with trusted builders. Landowners do this because they cannot follow all RERA rules alone. This increases consolidation. Buyers also prefer builders with a strong delivery record.

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