Advantages And Disadvantages Of Real Estate Development

There are five major players in the real estate development industry: Promoter Land owner Allottee Real Estate dealer Competent authority

The other important player is the Bank and other financial institutions providing retail banking project finance and equity funding to the housing and construction industry.

ADMINISTRATIVE CHALLENGES:

Procedural delay is a major constraint in this sector. According to the World Bank’s ‘Doing Business 2016’, India ranked 183rd out of 189 economies in terms of construction permits, requiring on an average of 40 procedures to get permits as compared to an average of 15.1 in South Asia and 12.4 in OECD (Organisation for Economic Co-operation and Development) countries. It is estimated that about 25 percent of housing projects in India are delayed, largely due to poor project management and delay in regulatory approval. It is estimated that over 40 different kinds of approval and No Objection Certificates (NoC) are required for building for building project, which can take anywhere between two and three years for construction to start.

Therefore, the biggest challenge for the enforcement of the provisions of the Act would be streamlining the procedures and administrative practices in vogue in different states at different levels. The compliance on part of the promoter with regard to the timelines prescribed by the Act is largely dependent on the efficient and expedient administration.

COMPETENT AUTHORITY REMAINS OUTSIDE THE ACT:

The