Bihar's Real Estate Bureaucracy Outshines Maharashtra, Says CREDAI President
Lalit Kumar Jain, real estate leader and president of the Confederation of Real Estate Developer’s Association of India (CREDAI), argues that Bihar offers a more streamlined real estate approval process compared to Maharashtra. He made these remarks while speaking to DNA ahead of CREDAI's first all-India meeting in Pune.
"In Bihar, the bureaucratic setup to get necessary sanction allows us to complete our projects on time. Thanks to the organised system there, the end buyer also pays less for real estate compared to Maharashtra," Jain stated.
CREDAI Conference to Address Industry Challenges
The two-day conference, held in Pune, will delve into multiple challenges confronting the real estate sector. Key discussion points include approval processes, the government's mandate to reserve 20% of flats for the economically weaker section (EWS), and other pertinent issues.
Project Approval Delays a Major Concern
Jain emphasized the significant impact of project approval delays. "In case the sanctions are delayed, the cost of the project escalates which results in a burden on the customer," he explained. This directly affects the final cost for homebuyers, making housing less accessible.
EWS Reservation Policy's Potential Negative Impact
The Maharashtra government's policy of reserving 20% of flats for the EWS is another critical concern. Jain believes this policy will also lead to cost increases for other buyers. "To compromise on this, the builder will pass on the cost to other buyers who will feel the pinch," he said. This cost transfer could potentially impact sales and make homeownership challenging for many.