Average Project Delay In Punjab Is 4 Years, Highest In India: Assocham

While a lot of emphasis is being laid on handling real estate project delays effectively, data present a contrary picture.  According to a report by industry body Associated Chambers of Commerce and Industry of India (Assocham), as many as 826 residential projects across India are facing delays on an average of 39 months or three years and three months.

According to the Assocham report which covers numbers till December 2016, of the 3,511 housing projects that are "running live in construction", 2,304 are under various stages of implementation while 886 projects have recorded "significant delays". Of the projects that are witnessing significant delays, 826 are residential projects while 60 are commercial.

Also read: How To Deal With Project Delays

Where do they stand?

The report indicates that in northern state of Punjab, known for its business-friendly practices and focus on ease of doing business, projects have recorded the highest average delay of 48 months or four years. At 45 months, Telangana has got the second spot, followed by West Bengal, Odisha and Haryana each recording average project delays of 44 months. Following close are Andhra Pradesh, Madhya Pradesh and Uttar Pradesh, recording 42 months of project delay. In Maharashtra, the state that houses India's financial capital Mumbai, average project delays are of 39 months or over three years.

The report says that in Karnataka, the state that houses India's information technology capital Bengaluru, real estate projects recorded the lowest delay of 31 months ― two years and seven months. Similar average project delays were also witnessed in Rajasthan and Kerala, the report adds.

Also read: Here's How Authorities Could Put An End To Infrastructure Delays

In the same boat

If you, by any chance, thought the performance of private projects was any better than public ones or vice versa, the report would further disappoint you. While public projects face an average delay of 39.03 months, the average delays recorded in private projects is 39.63 months.

How to make things better?

The process of obtaining mandatory approvals from multiple regulators and authorities, says the report, results in cost and time overruns. "These delays not only discourage investments in the housing sector but also lead to delays and corruption. As an effective solution, the Centre along with state governments must introduce a single-window system for clearance of all real estate projects," says the report.

The study suggests authorities act as a facilitator rather than a regulator, apart from bringing things online to ensure timely delivery of projects.