About 886 total real estate projects face delays; Punjab records maximum delays of 48 months: Assocham
1. Out of the total 886 delayed projects, 826 projects are from the housing construction while 60 are from the commercial complex segment
2. Punjab has witnessed a maximum delay of 48 months in construction and real estate projects followed by Telangana by 45 months and West Bengal by 44 months
3. Karnataka has recorded lowest delay of 31 months in implementation of construction and real estate projects
About 886 total real estate projects in India are running behind schedule on account of delays in obtaining mandatory approvals from multiple regulators and authorities leading to cost escalation and time consumption in implementing of projects, says a latest study by industry body Assocham.
It said at the end of December 2016, 3511 projects were live in construction and real estate sector, of which 2304 were under the implementation stage.
According to the study findings, of the projects under implementation, 886 construction and real estate projects have recorded significant delays.
Out of the total 886 delayed projects, 826 projects are from the housing construction while 60 are from the commercial complex segment, cited Assocham in a statement on Sunday.
The study has shown that 826 housing projects are running behind schedule by an average of 39 months with Punjab state has the maximum of the delayed projects followed by Telangana and West Bengal.
Punjab has witnessed a maximum delay of 48 months in construction and real estate projects followed by Telangana by 45 months, West Bengal by 44 months, Odisha by 44 months and Haryana by 44 months, Assocham said.
States like Madhya Pradesh, Andhra Pradesh and Uttar Pradesh have recorded 42 months of delay while Maharashtra saw delay of 39 months.
The study findings have showed that Karnataka has recorded the lowest delay of 31 months.
Similarly, Rajasthan and Kerala have recorded delay almost equal to Karnataka followed by Gujarat and Tamil Nadu.
The industry body expects the revival of investments in the sector with the Reserve Bank of India's (RBI) latest announcement to permit banks to invest in REITs leading to timely execution of projects.
“Hopefully, with steps like banks being allowed by the RBI to invest in Real Estate Investment Trusts (REITs), the sector should see revival of investment, enabling it to cut delays and restore consumer confidence,”Assocham secretary D S Rawat said in a statement.
In order to get timely execution of real estate projects, the apex body has demanded for a single-window system for clearance of all real estate projects.
"The process of obtaining mandatory approvals from multiple regulators and authorities result in cost and time overruns.These delays not only discourage investments in the housing sector but also lead to delays and corruption. As an effective solution, centre and state governments must introduce a single-window system for clearance of all real estate projects," Assocham said in a statement.
"...The government should act as a facilitator rather than a regulator of the real estate projects, particularly where demand is more than supply," it added.