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An Explainer: Construction Permit

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The approvals required from government authorities before constructing or renovating buildings are called construction permits.

PropGuide Explains Construction Permit

In most parts of the world, real estate developers need construction permits to build and, in some cases, renovate buildings. To receive a construction permit, developers need to apply with a specific building plan.

The ease of receiving construction permits is a major factor that determines the affordability of housing. Receiving construction permits becomes easy if the norms are clearly specified by the governing authority. Recently, India's environment & forests ministry decided to make the process of obtaining construction permits easier, in order to reduce delays in the construction process and to make housing more affordable. The government wants developers to be able to receive construction permits within a 60-day timeframe.

Check out PropGuide's comprehensive guide to real estate terms here.

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