By: Sachin Sandhir, Managing Director, RICS South Asia
The building approval process in India is relatively slower and more expensive in comparison to several other countries as indicated by a recent World Bank assessment. The report highlights that an average 37 procedures over a period of 195 days are needed for obtaining construction permits in the country vis-à-vis 15 approvals over an average 157 days in the OECD region.
This fact is further reiterated by a recent CII report which establishes that more than 50 clearances are required from several state and other authorities which typically takes between 6-12 months, on occasion stretching to two years.
Therefore, a simple and efficient single window building approval process is essential in aiding the provision of quality development, especially in a country like India where there continues to exist a huge housing shortfall which requires supply to improve and also as infrastructural facilities continue to be strengthened.
It is imperative to create a simple building approval mechanism that encourages the creation and diffusion of new knowledge based on international best practices and technology and allows for effective decisions on projects to be taken within a reasonable timeframe while also maintaining high building control and regulatory standards.
From the customer’s standpoint, considering real estate is by far the largest investment that one will make during one’s lifetime, it is essential that developers disclose all relevant project information to potential buyers. It is only when developers make specific and true disclosures on the legal, financial and technical aspects of a property, that customers can make informed decisions on the same. A reference can be made to the RICS HomeBuyer Report in the UK, which provides such detailed information on properties.
Transparency is also a major factor that helps attract foreign investments in real estate. This requires the presence and enforcement of clear guidelines and rules for both local and overseas investors in order to build confidence and strengthen the sector, as most individuals are usually drawn to destinations that are relatively stable.
