Corruption may be the cause for increase in housing prices, at least by 20%, as builders pay to errant bureaucrats at every stage of approval. Hence the ultimate product becomes expensive and the buyers end up paying it. There is a clear nexus between politics and real estate and there is a strong requirement for cleansing the system.
Policies regarding these need to be formulated by the Government – feels the legal advisory team at Ikia Consulting Services. The government is looking at establishing single window clearances and online approvals to mitigate the issue.
The Real Estate Regulation and Development Bill 2013 was introduced to protect the consumers and stakeholders interest in the sector. Policy gaps need to be plugged in order to stem corruption.
The investors feel the need for a real estate regulator to bring in coordination and cohesiveness among the various Government bodies. Rectification of faulty land policies are also the need of the hour.
Consultants at Ikia Consulting Services advocate incentives for affordable housing projects in order to encourage more builders to undertake such developments and increase supply. They advised realty developers to learn from previous cycles and reduce their profit margins to attract buyers back to the market.