Delayed clearances for new buildings are one of the key factors that shoot up property prices in India. The Economic Survey 2013 blamed the government for delayed clearances which result in the hike of property prices.
Property prices shoot up as a result of delayed clearances.
According to the Economic Survey 2013 report the property prices shot up in India by 40% due to the undesirable delay in clearances. As the builders are to gain around 34 clearances for starting any project, it takes at least six months’ time for beginning. By the time the property prices rise highly.
Economic Survey for 2012-13 in its report submitted in the parliament pointed that the housing and realty sector faces many challenges in India. One of the main challenges is undesirable delay in clearances.
The Survey adds that the average time taken for all clearances is 196 days. This delayed period alone shoots the property prices up to 40%.
Citing the World Bank’s the latest report by, the survey said that India ranks 182nd in construction clearance processes. Meanwhile the Subcontinent is one of the top countries in terms of housing and work-space demands. Continue reading
Real estate players of India hope that Finance Minister’s upcoming budget will bring down the costs of finance for the construction sector. Finance minister is likely to announce new Budget which is expected to boost the real estate sector on February 28.
Real estate sector wants Financial Minister to lower the financial costs.
Real estate developers expect that the new budget which the Finance minister of India will announce on February 28 will contain provisions to boost the real estate sector. Builders and other realty players expect the cost of finance for the construction will be brought down by the new budget. They demanded that it will be enabling them to provide housing units at lower costs.
Real estate developers are also hopeful of faster clearance for their projects. Many at a time, the delay takes place due to the longer time taken for gaining the clearance. The delay in gaining clearances leads to delayed deliveries. Further the cost also gets accelerated in meantime, developers claimed. All these affect home buyers onto whose shoulders the additional cost is loaded. Continue reading