A single-window clearance for all real estate projects,
being mooted by the government, is expected to significantly bring down costs
of projects for developers.
“Developers / promoters will be
able to bring down cost with faster approvals, as well as assured and timely
delivery of the projects. For buyers, there will be at least five to 15 per
cent downward correction in property prices, depending upon the location and
cost of the land. There will be safety of investments, as well as clarity on
timelines,” Realistic Realtors, managing director, Harinder Singh, told
Business Standard.
The minister for housing and urban poverty alleviation,
Mr. Ajay Maken, recently said the government was in the process of formulating
a single - window clearance for all real estate projects, bringing down average
approval time from the current 200 to 45-60 days.
Supertech Chairman and Managing Director Mr. R K Arora
said this would have a 5 to 10 % impact on property prices. Currently, there
are too many approvals needed, raising cost and delays, he added.
The government’s Economic Survey for 2012-13 had said:
“There are about 35 procedures and the average time taken is 196 days, which
increases the sale value by 40 %. While India is among the top countries in
terms of housing and workspace needs, it ranks 182 in construction permission
processes, according to the World Bank’s Doing Business 2013 report.”
Mr. Maken’s ministry has also planned to bring the Real
Estate (Regulation and Development) Bill before the cabinet soon. It envisages
a regulator for the real estate sector, with tough provisions of penalty &
even a jail term for defaulting developers.
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