Performance Evaluation of Administrative Parameters of Real Estate Regulations in India by using Data Envelopment Analysis Model

Abstract

The real estate sector is one of the most universally recognized sectors which contribute a lot in economic growth of any country. In India, it is expected to grow and reach around USD 1 trillion by 2030. Immediately after implementation of the Real Estate (Regulation and Development) Act, 2016 [RERA] it has been became essential to find out the behavior and performance of various administrative parameters employed across different states of India. The study is related to the performance evaluation of administrative parameters engaged in the states of Maharashtra and Gujarat of India. The basic approach carried out to collect the data through primary resources including questionnaires. Here the Data Envelopment Analysis model is used to perform system research on the performance of real estate regulations and accordingly developed a Charnes Cooper Rhodes (CCR) Model and a Banker Charnes Cooper (BCC) Model to evaluate the efficiency of administration. The CCR model predicts the efficiency range of key indicators that shows differential results on variables considered in the study. The BCC model shows significant comparison between efficiencies. The difference in the efficiency level allows the stakeholders to think further on these findings and question the appropriateness of key parameters of this new reform as it is more impacting promoters and real estate agents during the initial stage.