Economic Survey 2013 stated that delay in clearances shoot up property prices in India.
As per the Economic Survey 2013, property prices in the county shoot up mainly due to the additional time taken for the clearances. The survey added that once the building clearance becomes faster the hike of property prices can be halted well.
Sky reaching property prices is one of the main reasons which drive the buyers away. Many of the proposed buyers are not able to own a home due to the higher property prices which exist in all the top cities of India.
The builders blame that the p property prices are increasing mainly due to the hike in the land prices. The price of a property is also determined by the cost of construction which includes labor charges and other costs of raw materials.
However and besides all the above said factors, property prices shot up due to the undesirable delay in clearances, revealed Economic Survey 2013. The average time taken for attaining a clearance certificate is over 180 days or six months.
This is very long period and meanwhile the cost of production goes higher. The land prices and the labor charges also may be hiked.
Additionally the builders are to spend some additional amount for maintaining the property and the project site. This also adds to the total cost of a project.
According to the revealing of Economic Survey 2013, the property prices are shot up by 40% due to the delay in clearances. So the Survey suggested the government to consider the matter and take necessary steps to curb the hike of property prices.
Though the government is speaking highly for the affordable housing sector, the government has not done anything for the segment. The builders have been demanding for single window clearance for the building approvals for long time. However their demand for single window still gets longer again.
