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.
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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