Reasons behind real estate project delay
It is known that thereal estate projects in India are being held up in several metro cities. There are several reasons behind this delay on project completion.
It is noticed that projects approvals are very slow in several states. The primary and major reason in project delay is delay in getting regulatory approvals.
Investor activity is slow in the market and this in turn is creating cash flow problems for the developers, that results in delaying projects in India.
Another cause of project delay is that many developers in the market who are inexperienced and do not have the resources to build large-sized projects entered the market when the going was very good. But then recession struck and they failed to manage their cash flows and due to lack of credentials. As a result they were forced to stop the construction.
The real reason for project delays is lack of financial discipline, inefficient cash flow and project management. Project delays may continue, as developers are still short on funds and the rising construction costs have affected their margins.
To read more real estate news:
Inflation rate of property in Noida is highest
Avail tax benefits from second property in India
Source: Economic Times
