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.
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