Why Developers Fail to Complete Projects on Time?

Bangalore: Delay in projects has become a major problem in most of the Indian metros. Most of us have this question in mind as to why are projects getting delayed? Well for a start there are some serious issues related to the delay, such as market variation in prices, limited funds, over priced material costs, delays in receiving regulatory approvals, slump in demand and financing real estate projects for the developers, reports TNN.

For instance, projects launched back in the year 2006-07, that were supposed to be handed over by 2009-10, will now take another two years to hand over possession.  

In Maharashtra, the main reason for project delays is due to regulatory hurdles. A spokesperson of the Mumbai-based Hubtown stated that "Half a dozen projects of our group have been delayed by 12-18 months. All our projects in Mumbai, be they in South Mumbai, the western suburbs or the eastern part of the city, have been delayed. The primary reason is delay in getting regulatory approvals." Also, Maharashtra government became vigilant soon after the Adarsh housing scam, according to inside sources.

Nevertheless, the silver lining is that the worst seems to be over Bharat Mody, the chief financial officer of Hubtown quoted that "The policy limbo has been removed with the coming of the new Development Control Regulations (DCR) in Mumbai, which will help maintain transparency in deals and benefit customers. The challenge is in terms of implementation, shortage of labour and rising construction costs. We wish there was a single-window clearance," reports Economic Times.