Time consumed for construction approvals increased property sale value by 40%

While India is among the top countries in terms of housing & workspace needs, it ranks 182 in construction permission processes

Time consumed in getting approvals for construction escalates the sale value of a property by about 40%, according to Economy Survey for 2012-13.

“There are 34 procedures and the average time taken is 196 days, which increases the sale value by 40%. 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,” the Survey noted.

The real estate and housing sector faces many challenges. Some of the issues that need to be resolved include rapid increase in land prices, absence of a long-term funding and lending market at fixed rates, limited developer finance, high stamp duties and difficulties in land acquisition amongst others.

Besides, ‘Affordable Housing for All’ is another challenge as the demand for housing by the economically weaker section (EWS)/lower income group (LIG) segment has increased.

The sector has a share of 5.9% in India’s GDP and recorded a growth of 7.2% in 2011-12.