A red flag from MahaRERA for Social Media Real Estate Influencers

As of now, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has indicated that it does not plan to bring social media real estate influencers under the RERA Act. This means that influencers promoting real estate through social media platforms will not be directly regulated by MahaRERA at this time. However, regulations and oversight might evolve as the market and regulatory landscape change.

MahaRERA officials have stated that their goal is to ensure developers provide comprehensive information to the public, enabling homebuyers to make well-informed decisions. Therefore, there are no current plans to regulate social media influencers who advertise or promote real estate projects online. 

A senior MahaRERA official said, "Homebuyers typically don't make purchasing decisions based solely on social media influencers' posts. Given that buying a home is often a once-in-a-lifetime event, it's crucial for developers to provide extensive information through existing systems, even though influencers can promote real estate projects." 

He also added, “We are working to make our system stronger and robust to ensure homebuyers get maximum information while making the final decision to buy a home. Real estate agents play a big role here and we have ensured that they sit for the competency examination.”

Numerous real estate influencers engage with audiences on popular social media platforms such as YouTube, X, and Instagram. They offer valuable insights on real estate ventures and frequently share their thoughts on the industry.

Over the past year, MahaRERA has imposed penalties on real estate agents and developers for breaching rules related to advertising both online and offline. On July 8, the Authority announced that it had taken action against the developers of 628 real estate projects for failing to include the RERA registration number and QR code in their advertisements, resulting in a total penalty of Rs.88.90 lakh.

In June 2024, SEBI approved regulations to combat misinformation by financial influencers. The new norms restrict SEBI-regulated entities from associating with unregistered individuals and allow only investor education through such associations without providing recommendations or return claims. SEBI also introduced a closed system for fee collection by registered Investment Advisers (IAs) and Research Analysts (RAs).

Ramesh Prabhu, Chairman of Maharashtra Societies Welfare Association said, "Financial institutions, CA, CS, architects all of them are stakeholders and it would be great if they could also be regulated in some way by MahaRERA. If not regulated, some sort of empanelment might also work.”

He also added that regulations for developers and real estate agents, particularly concerning advertisements, can definitely be improved. Although regulating real estate influencers is also important, it is crucial to first focus on stricter regulation of developers and agents.