Housing Prices Likely to Drop
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 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,” Realistic Realtors, managing director, Harinder Singh, told Business Standard.
“There will be safety of investments, as well as clarity on timelines,” he added.
The minister for housing and urban poverty alleviation, Ajay Maken, yesterday 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-dd to 45-60 days.
Supertech chairman and managing director R K Arora said this would have a five to 10 per cent 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 34 procedures and the average time taken is 196 days, which increases the sale value by 40 per cent. 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.”
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 and even a jail term for defaulting developers.
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