As many as 826 housing projects are running behind schedule by an average of 39 months, with Punjab having the maximum of the delayed projects followed by Telangana and West Bengal, an ASSOCHAM study has found.
NEW DELHI: It said as at the end of December 2016, 3511 projects were live in construction and real estate sector, of which 2304 were under the implementation stage. Of the projects under implementation, 886 construction and real estate projects have recorded significant delays. Importantly, out of 886 delayed projects, 826 delayed projects are from housing construction and 60 from the commercial complex.
Among the major states, Punjab has recorded the maximum delay of 48 months in construction and real estate projects followed by Telangana (45 months), West Bengal (44 months), Odisha (44 months) and Haryana (44 months), the ASSOCHAM study noted.
Similarly, Madhya Pradesh, Andhra Pradesh and Uttar Pradesh have recorded 42 months of delay. Maharashtra saw delay of 39 months
Karnataka has recorded lowest delay of 31 months. Similarly, Rajasthan and Kerala have recorded delay almost equal to Karnataka followed by Gujarat and Tamil Nadu.
“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 General Mr D S Rawat said.
On an average construction and real estate projects have been delayed by 39 months, the study said. The ownership analysis suggests that public and the private sector projects have almost similar kind of delays. Public sector projects are delayed by 39.03 months and private sector by 39.63 months.
The real estate and housing sector is battling several problems. 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.
The chamber said the government should act as a facilitator rather than a regulator of the real estate projects, particularly where demand is more than supply. State governments should complete updation their land records, making them computerized and online.
In coordination with the state and local authorities, basic infrastructure like transport, water, power, housing, healthcare and sanitation must be taken up in well before completion of the projects.