Real estate projects are getting delayed in both small and big cities. Projects have been started in several metros across the country. There are many issues related to this. Project delays are common in the Indian real estate market. There are numerous reasons for real estate projects getting delayed. These issues starts from financial and funding issues till mandatory approvals. Slow investment is another reason for delay in projects in India. Main reason for projects getting delayed is lack of demand for them .Lack of demand is due to recession and inflation. With sluggish sales in the past most developers have taken so much payments and now unable to pay the debts. It is very difficult to predict a delay in projects.
Another reason for delayed projects is that developer do not share all relevant documents about the property and projects. Be it license, land title papers , sanctioning of building plans of the projects. If the developer is showing his sanctioned plan at the start of the project and while booking it directly indicates that he has all the necessary papers fulfilled and approved.
When builder starts expanding his business he tend to become over committed and this leads to cash crunch. And it is very obvious when there is no cash how will builder complete any project? In India corruption starts from lower level to higher level. Be it in the private sector or government sector. Government departments wants there share in the form of bribes . Before obtaining any license or certificate or for any further approval you have to feed them with bribe then only they will further proceed. And after taking bribe also they will start working on their moods giving you one or another reasons and showing you different problems.
There are no regulatory systems in India to deal with builders as well . They take advance money from buyers and then invest that money in some another project keeping the projects incomplete. They also know that buyer’s are from different locations and backgrounds and are not capable of fighting with them. They are motivated to do so as there are no one to watch and keep an eye on their activities. No regulations and ultimately buyers are taken on a ride.
Due to introduction of FDI, many projects got delayed due to decrease in inflow of FDI. Another small but important reason effecting funding is increase of minimum investment limit in PE to one crores by SEBI. Many small investors are finding it difficult to to raise such a high amount.
Author Bio:Piyush Group is one of the leading real estate company in india. Piyush Group is involved in development of Integrated Township, Group Housing Projects, Commercial Mall.Piyush Group is an ISO certified companyAnother reason for delayed projects is that developer do not share all relevant documents about the property and projects. Be it license, land title papers , sanctioning of building plans of the projects. If the developer is showing his sanctioned plan at the start of the project and while booking it directly indicates that he has all the necessary papers fulfilled and approved.
When builder starts expanding his business he tend to become over committed and this leads to cash crunch. And it is very obvious when there is no cash how will builder complete any project? In India corruption starts from lower level to higher level. Be it in the private sector or government sector. Government departments wants there share in the form of bribes . Before obtaining any license or certificate or for any further approval you have to feed them with bribe then only they will further proceed. And after taking bribe also they will start working on their moods giving you one or another reasons and showing you different problems.
There are no regulatory systems in India to deal with builders as well . They take advance money from buyers and then invest that money in some another project keeping the projects incomplete. They also know that buyer’s are from different locations and backgrounds and are not capable of fighting with them. They are motivated to do so as there are no one to watch and keep an eye on their activities. No regulations and ultimately buyers are taken on a ride.
Due to introduction of FDI, many projects got delayed due to decrease in inflow of FDI. Another small but important reason effecting funding is increase of minimum investment limit in PE to one crores by SEBI. Many small investors are finding it difficult to to raise such a high amount.
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