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