Despite the availability of unlimited information on real estate websites with respect to elaborate township projects, the real estate sector still has its share of grey areas due to the absence of proper title deeds and the opaque functioning of local revenue departments that were responsible for creating the first hurdle – namely the acquisition of land. It is but obvious that land acquisition is the most essential aspect before townships can be established to home residential and commercial complexes, be it for retail and entertainment or flats, villas and studio apartments. Consolidating contiguous land parcels through multiple owners and adopting the local vernacular with negotiations and multitude paperwork is an exhaustive process.
The awkward mechanisms that drive policy-making at the State, Municipal Council and town planning authorities constitute the next set of obstacle. There is a lot that goes on for approval of real estate projects that this has been highlighted as a major point of variation. Real estate developers are made to shuttle between different state departments from forests to environment, power, water and the planning committee juts to get all requisites approved to establish integrated townships.
Such projects call for the need of varied approvals from submission of project plans, construction permits, environmental clearances and many others. It is projected that for a simple group housing project, a bundle of over 50 different approvals are needed. This adds to the lengthy process that in turn creates delays and increases the holding costs for the real estate developer, thus causing project costs to spiral upwards.