Streamlining could reduce new home costs and delays

By Amitabh Chaturvedi and Utkarsh Tewari, Mine & Young
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An average real estate project from launch to possession takes about five to six years. There is usually a grace period of six to12 months. Yet at times there is further delay in possession of property.

Although details vary from state to state, a real estate builder/developer currently has to apply to 40 to 50 central, state and local departments for approval for a single project. The whole process takes about three to five years.

Amitabh Chaturvedi
Amitabh Chaturvedi

During this period, the cost of construction rises and so does the cost of homes. According to a 2010 report submitted to the Indian government by the McKinsey Global Institute, titled India’s Urban Awakening, approvals account for 40% of a project’s sale value.

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Amitabh Chaturvedi is the managing partner of Mine & Young, where Utkarsh Tewari is a partner.

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