Builders associations say the inordinate delay in obtaining planning permission is a major reason for the rise in construction cost. “Ahead of submitting approvals for housing projects to Chennai Metropolitan Development Authority (CMDA), builders have to get ‘no objection certificates’ from 10 different departments, including fire and rescue and traffic. At times, it takes months to get sanctions for projects,” former national president and spokesman of Builders Association of India (BAI) R Radhakrishnan said.
Confederation of Real Estate Developers Association of India (CREDAI) Chennai Chapter president Suresh Krishn said a single window clearance system for project proposals was the need of the hour. CREDAI representatives recently paid a courtsey call on new urban development minister Udumalai Radhakrishnan, who is also CMDA chairman. “We plan to give a representation to the government in this regard later,” Krishn added.
The Chennai real estate sector is going through turbulent times since last year’s floods with builders struggling to attract buyers, while new launches have dropped significantly, industrial sources claim. Chennai Real Estate Agents Association secretary Chandrasekhar Kaliamurthy said the launch of new housing projects in and around the city had dropped by nearly 50% this year compared to 2015. “Consumers are keeping their fingers crossed over investing in new projects after the unprecedented floods in December. But, we expect the situation to change in the coming months. The Government should pitch in under such circumstances to support us with various measures including increasing the Floor Space Index (FSI),” he said.
Builders also want the government to create development authorities in Coimbatore, Madurai and Tiruchirappalli akin the CMDA at Chennai. This would help in the overall development of the real estate sector across the State, National Association of Realtors South Zone Head Sudhakar said, observing that it would be a way forward for decentralisation of getting approvals for building projects.