Nearly 200 real estate projects in Indore valued at over Rs 3,000 crore are stuck due to delay in permissions and approvals from Real Estate Regulatory Authority (RERA) and local bodies, according to Confederation of Real Estate Developers’ Associations of India (CREDAI), Indore chapter.
The real estate market has seen a rapid recovery post Covid-19 restrictions led by a significant jump in demand for plots and ready-to-move in properties by home buyers but the delay in mandatory permissions has blocked funds and stalled sales of units, claimed developers.
“The delay in permissions and registration numbers from RERA has stalled hundreds of projects in Indore valued at around Rs 3,000 crore. This has not only held back sales of those units choking developers but is also causing huge loss of revenue to the state government. Real estate sector is reviving and consumer sentiments are upbeat but held up sales are adversely hurting the sector,” CREDAI, Indore chairman Gopal Goyal said. In Madhya Pradesh close to 400-450 real estate projects are in the pipeline awaiting permissions from RERA, according to CREDAI.
Developers said that the delay in permissions from the authorities amid a jump in construction cost has escalated their budgets.
“Post Covid-19, several real estate projects were planned by the developers looking at the spike in demand but the slow pace of permissions is causing huge losses to developers. The pace of approvals should be expedited so that old projects can come on ground and new ones do not get held back,” CREDAI board member Liladhar Maheswari said.
In Indore, the growth in the real estate market is led by growing demand for plots followed by residential properties, according to industry players.