Real estate projects in Indore city are unfortunately suffering because of mismanagement.
CREDAI Indore: Post pandemic, a huge surge in the real estate market has been observed. The real estate market bounced back quickly when compared to other industries. Most home buyers are fervently looking for plots and ready-to-move-in properties. So the demand aroused drastically, but there is a roadblock, i.e., approvals from the authoritative bodies being delayed, leading to around 200 real estate projects being stuck. Developers stated that a delay in the permissions has blocked funds and stalled sales of units.
These 200 projects valued at over 3000 crore rupees are stuck due to long delays in permissions and approvals from RERA (Real Estate Regulatory Authority) and other authoritative bodies as per CREDAI, Indore.
“The delay in permissions and registration numbers from RERA has stalled hundreds of projects in Indore valued at around Rs 3 Rs 3,000 crores. This has not only held back sales of those units choking developers but is also causing huge loss of revenue to the state government. The 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, around 400-450 real estate projects are all stuck due to delays in approvals from RERA & other permissions, according to the Confederation of Real Estate Developers’ Associations of India.
Many developers said that the delays in permission amidst the higher construction costs have rapidly increased 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 the ground and new ones do not get held back,” CREDAI board member Liladhar Maheswari said.
Reports suggest that in Indore, the development of the real estate market is largely by high demand for plots/land and then residential properties.
