Statistics says that about 34 percent of the constructed space across 25 cities across the nation which amounts to 3.2 billion sq. ft. of constructed space is delayed by a period of over a year. The value of the delayed construction is estimated at about Rs. 1, 65, 064 crore which is about 1.32 percent of the gross domestic product (GDP) of India.
An independent research organization Liases Foras has been measuring the average cost of the construction which is about Rs. 1, 500 per square feet. The report says that the project delays are the biggest hurdle in the real estate industry of India. This is also the cardinal reason for the higher prices of properties and the rise of prices too in many parts of India.
According to the estimate,after the clearance of the New Real Estate Regulatory bill by the parliament there could be some improvement in the execution of the projects. Due to the likely improvement of transparency, accountability and surveillance there could be marked improvement of delay in the completion of the projects which is an off shoot of improved efficiency. Many realtors and the veterans feel that the bill fails to bring under its purview many of the concerned government authorities, which are responsible for the clearances and approvals of projects. This is the reason the problems of the sector cannot be said to be solved totally. In this regard the developers and the veterans remark that faster approvals are also something that concerns the common consumers. The single window system of clearance of the real estate projects as aimed by the regulatory authorities wherein both the promoters and the projects can be monitored with the digitization of the land records may help in fastening the process of completion. But the experts feel that the bill has to evolve at much more length in order to make the mechanism of shortening the sanctioning process.
In this regard many realtors and experts feel that the government should first of all introduce a single window clearance system and then attempt to bring the real estate regulatory bill. They feel that the regulator is failing to address the needs of the real estate sector in carrying the business in an efficient manner. Furthermore it fails to improve the approval process either.