De­lay in hous­ing pro­jects are the long­est in Pun­jab

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - HT Es­tates Cor­re­spon­dent ht­es­tates@hin­dus­tan­times.com

PRO­JECTS UN­DER IM­PLE­MEN­TA­TION, 886 CON­STRUC­TION AND REAL ES­TATE PRO­JECTS HAVE RECORDED SIG­NIF­I­CANT DE­LAYS

It would come as no sur­prise for home buy­ers in Pun­jab who for long have borne the brunt of long project de­lays that hous­ing pro­jects in the state suf­fer the long­est de­lays among the ma­jor states in the coun­try.

Ac­cord­ing to a study by As­socham (As­so­ci­ated Cham­bers of Com­merce and In­dus­try of In­dia), among the ma­jor states, Pun­jab has recorded the max­i­mum de­lay of 48 months in con­struc­tion and real es­tate pro­jects.

The project de­lay in Pun­jab is more than the av­er­age de­lay in con­struc­tion and realestate pro­jects in the coun­try that is 39 months; over­all as many as 826 hous­ing pro­jects are run­ning be­hind sched­ule in the coun­try.

Blam­ing a mix of fac­tors for long project de­lays in the state, Col RS Per­har (retd), 59, a Chandi­garh-based-real es­tate an­a­lyst, said, “Though, the prob­lem of project de­layed is spread all over the state, the prob­lem is most acute in the SAS Na­gar ur­ban es­tate. A lot of de­vel­op­ers both na­tional and lo­cal level builders started their pro­jects with­out proper fund man­age­ment.

“They de­pended on the rev­enues gen­er­ated from the buy­ers. But, when the slow­down hit the mar­ket, buy­ers, which in­cluded many in­vestors, started to with­draw money or stopped pay­ing the monthly in­stal­ments. This left de­vel­op­ers with no funds to com­plete the pro­jects. The prob­lem is acute in the state be­cause a lot of fly-by-night op­er­a­tors en­tered the mar­ket. Any­body with a piece of land turned into a builder with­out the req­ui­site pro­fes­sional ex­per­tise .”

Pun­jab is fol­lowed by Tel ang ana (45 months ), West Ben gal (44 months ), Odis ha (44 months) and Haryana (44 months), said the study. Mad­hya Pradesh, And hr a Pradesh and Ut­tar Pradesh have recorded 42 months of de­lay.

Ma­ha­rash­tra saw a de­lay of 39 months. K ar nat aka has recorded the low­est de­lay of 31 months. Sim­i­larly, Raj as than and Ker­ala have recorded de­lay al­most equal to K ar nat aka fol­lowed by Gu­jarat and Tamil Nadu.

Ac­cord­ing to the study, as at the end of De­cem­ber 2016, 3511 pro­jects were live in con­struc­tion and real es­tate sec­tor, of which 2304 were un­der the im­ple­ment a- tion 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.

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, said the study.

The real es­tate and hous­ing sec­tor is bat­tling sev­eral prob- lems. 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 up­dat­ing their land records, mak­ing them com­put­er­ized and on­line. In co­or­di­na­tion with the state and lo­cal au­thor­i­ties, ba­sic in­fras­truc­ture such as trans­port, wa­ter, power, hous­ing, health­care and san­i­ta­tion must be­taken up in well be­fore com­ple­tion of the pro­jects.

“Hope­fully, with steps like banks be­ing al­lowed by the RBI to in­vest in Real Es­tate In­vest­ment Trusts( RE I Ts ), the sec­tor should see re­vival of in­vest­ment, en­abling it to cut de­lays and re­store con­sumer con­fi­dence,” said, DS Rawat, sec­re­tary gen­eral, As­socham

GETTY IM­AGES/IS­TOCK­PHOTO

Among the ma­jor In­dian states, Pun­jab leads the way for long­est de­lays in the hous­ing pro­jects, says an As­socham study

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