Real estate becoming unviable due to high construction cost: Tata Realty MD

The development of real estate projects in India is becoming unviable due to high cost of land, capital and construction, along with other economic uncertainties, said Sanjay Dutt, MD & CEO of Tata Realty and Infrastructure Ltd.

Dutt, who also heads Tata Housing, said the government as well as judiciary should hold accountable all stakeholders that are involved in approval and development of real estate project to make things easier.

Real estate projects are on the verge of becoming unviable, he remarked.

When asked about the factors making projects unviable, Dutt pointed out, "Real estate requires a lot of capital in India, first of all to acquire land. In major cities such as NCR, Mumbai and Bengaluru, it (land cost) is almost 50 per cent to 80-85 per cent of the project cost."

He mentioned that it takes another 2-3 years in designing the project and getting all regulatory approvals to start construction and marketing activities.

Dutt said the cost of capital varies a lot, from