34% of total under-construction space worth Rs 165064 crore delayed by over 12 months

Q: Of the total residential area under construction across 25 cities around 3.2 billion sq-ft. or 34% of total is delayed by over 12 months.

Rishi Dev,

18th December 2015

Real estate News in Mumbai

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Replies (3)

At the same time, this bill will have a positive impact on the Indian economy as it would provide confidence to foreign investors. As far as responsibility for delay is concerned, it lies both with the developer and the Government authorities. Thus, if we look at the larger picture, the delays in execution also have a negative bearing on India's GDP.

jitu jayswal,

18th December 2015

Comment

So, it becomes necessary that a global standard is maintained and transactions are monitored by a regulator. Secondly, the escrow account will help in controlling redirection and misuse of funds, ruling out unsafe practices.

Shalini Parikh, Mumbai

18th December 2015

Hoping, that the new real estate regulatory bill, once it is cleared by the Parliament, is likely to improve transparency and accountability which will eventually improve reduction in delays.

jitu jayswal,

18th December 2015

Comment

Hi Jitu,
But since the new bill does not holds the sanctioning process for real estate projects and does not bring into its reach government authorities that provide approvals for projects, the problem of the real estate sector is only half solved.

Ravindra Singh,

18th December 2015

It's true Ravindra,
On the positive side, compulsory disclosures and registration that are part of the bill will ensure transparency, while taking responsibility in case of any unwarranted changes in the process will ensures accountability.

jitu jayswal,

18th December 2015

@Jitu,
Unsatisfied buyers can now approach 644 consumer courts at the district level instead of only the Regulatory Authorities proposed to be established mostly in capital cities. This makes it convenient for buyers and reduces the costs of litigation. Also, the bill marks a provision for imprisonment of builders and real estate agents in case of violation of rules.

Alokesh Nandi, Kolkata

18th December 2015

And the research firm has also estimated that the average cost of construction at around Rs.1500/sq-ft.

Ravindra Singh,

18th December 2015

Comment

Right Ravindra,
Project delays are the weak point of Indian real estate and are one of the key reasons for high property prices in many parts of the country.

Amreesh Murugan,

18th December 2015