Real Estate needs a single-window Clearance system

A single-window clearance system is required to smoothen the flow of the supply and demand in the real estate sector, promote ease of doing business, and bring investments in the industry. Strategically, it aims at providing the sector with a major boost to thrive further. 

Today, property developers require numerous mandatory permissions such as ownership certificate, building layout approval, commencement certificate, water and electricity certificates, etc. to approve housing site and building plans. The whole process is so complex and multifaceted that it usually takes more than a year to complete all the required formalities. Thus, it stretches the construction cycle and leaves homebuyers waiting.

In integrating everything under one roof and building the required infrastructure, the entire process of clearance can be simplified to a point where quick approvals and efficient management of the cost of construction becomes the norm.

Addressing the issue 

While it is true that in recent years, the Real Estate Regulating Authority has brought in transparency and structural reforms in the real estate sector to make developers accountable, but the major stakeholders remained insulated. Consequently, facilitating early completion of projects remained unaddressed and developers faced a lot of challenges. Thus, bringing these authorities under the purview of RERA will hold these authorities accountable for unnecessary delays and other discrepancies. 

The required government interventions

Aimed at the macro-economy, the government has already introduced key measures to keep the sector out of the effects of the raging pandemic. Now, as the industry leaders are hopeful that the real estate sector will continue to flourish in the year ahead, the need of the hour is to push for a single-window clearance system that will further make the industry realise its growth potential. To support developers, the focus should be on industry-specific measures that can manage the main areas of the industry, address present loopholes and streamline the construction cycle to improve developers’ credit ratings and boost demand.

India to lead from the front 

After agriculture, real estate is the most significant sector in India that is expected to become a market of Rs. 65,000 crores by 2040. And as retail, healthcare, and real estate are growing at a fast pace, providing the infrastructure for the country’s growing needs, the sector is projected to contribute 13 percent to its total GDP by 2025. 

Reports suggest that despite the pandemic-related global slowdown, the total foreign direct investment in India stood at a record USD 81.72 billion in 2020-21. This increase in FDI shows India’s potential to become a global leader. Today, global players want reliable business partners and are keen on seeing parameters of growth before investing. Therefore, a series of measures to promote ease of doing business with required structural reforms will bring much-needed transformational changes in the industrial landscape. It aims at making India, a hub for global investments. 

In sync with the government’s all-around efforts to boost the economy and to make India a world leader in the post-covid global order, a few states have taken lead in introducing a single-window clearance system. These interventions are aligned with a push towards making Indian truly digital and thus the industry requires more states to follow and implement the same. It will – other than what has been mentioned above – curb unnecessary human interaction, lessen the paperwork and fasten the entire process significantly for the sector to cater to the needs of a fast-growing economy.

- Mr. Aditya Kedia, Managing Director - Transcon Developers