Why does launching or buying a real estate project in India feel slower and more complex than it should? Developers, investors, and homebuyers face challenges like layered approvals, regulatory uncertainty, and long delivery timelines, making the ease of doing business in India real estate a critical issue.

As a member of the CII Ease of Doing Business National Task Force, Ashwinder R. Singh has played a key role in shaping reforms to tackle these challenges. His leadership has driven efforts to simplify processes and create a better business environment for all stakeholders.

Recent reforms have improved India’s Ease of Doing Business ranking by 79 positions, from 2014 to 2020. These reforms are about more than just numbers; they are changing how projects are planned, regulations are enforced, and decisions are made by developers and investors. 

In this article, you’ll see how these reforms impact real estate, with insights from Ashwinder R. Singh on the industry’s future.

Key Takeaways

• Ease of Doing Business in Indian real estate refers to simplifying processes for developers, investors, and homebuyers.

• Recent reforms focus on streamlining approvals, increasing transparency, and improving financing conditions.

• Ashwinder R. Singh has played a significant role in shaping these changes through his involvement with the CII Ease of Doing Business National Task Force.

• Key reforms include RERA, digitisation, single-window clearances, and affordable housing initiatives.

• While progress has been made, further reforms are needed, particularly in uniform implementation and dispute resolution.

What Does “Ease of Doing Business” Mean for Indian Real Estate?

Ease of Doing Business (EoDB) refers to the efficiency of laws, regulations, and processes that support business operations. In real estate, it involves simplifying systems for land acquisition, approvals, permits, financing, and property registrations. By improving these processes, projects can begin faster, operate smoothly, and be delivered with more certainty.

Ashwinder R. Singh, as a member of the CII Ease of Doing Business National Task Force, believes that EoDB is not just about reducing bureaucracy, it’s about creating an environment where developers and investors can execute projects with confidence, knowing the process is streamlined and predictable.

Recent reforms have improved EoDB, but true change will come from aligning regulatory systems across the sector to create a unified, efficient framework.

Key Areas That Affect Ease of Doing Business in Real Estate

• Approval Sequencing and Inter-Department Coordination: Streamlining the approval process, ensuring clear sequences for all required permits, reduces delays and helps developers deploy capital faster.

• Compliance Visibility During Project Execution: Transparent progress reporting allows regulators, lenders, and buyers to monitor project health, ensuring fewer surprises during development.

• Funding Eligibility and Cost of Capital: Clear documentation of compliance status improves credit profiles, making it easier for developers to access financing at favorable terms.

• Sales and Registration Process Certainty: Standardising sale agreements and digital property registration systems reduces ambiguity, facilitating smoother transactions and building trust with buyers.

• Post-Completion Accountability Mechanisms: Defined timelines for post-completion issues, like defect liability and grievance resolution, ensure buyer confidence long after handover.

While these reforms are essential, they often operate in silos, causing inefficiency. Ashwinder R. Singh advocates for greater coordination to ensure that reforms align with real-world needs for developers, investors, and homebuyers.

Why Real Estate Has Historically Struggled with Ease of Doing Business

India’s real estate sector has long struggled with fragmented regulations, delays, and unclear approval processes. Developers and investors faced inconsistent outcomes due to a lack of coordination between various departments, which led to project delays and cost overruns.

Ashwinder R. Singh has emphasized that these issues stem from a deeper structural challenge, inefficient regulatory frameworks that needed reform. To him, real estate growth depends on creating a unified, transparent system with streamlined approvals and predictable timelines.

Structural Challenges in the Sector 

• Discretion-Driven Decision Making: Regulatory interpretation often rested with local authorities, allowing outcomes to depend more on discretion than on written policy.

• No Enforceable Timelines for Clearances: Approval delays carried limited consequences for authorities, while developers absorbed holding costs and schedule overruns.

• Process Dependence on Manual Intervention: File movement, clarifications, and compliance updates relied heavily on physical submissions and follow-ups rather than system-driven workflows.

• Lack of Unified Oversight: Multiple agencies governed land, construction, environment, and sales independently, with no single authority responsible for overall project coordination.

• Minimal Transparency for External Stakeholders: Buyers and financiers had limited access to verified project status, making risk assessment heavily assumption-based.

These structural challenges highlighted the need for policy reforms to create a smoother, more predictable operating environment. Ashwinder R. Singh advocates for better regulatory coordination and digitisation to drive lasting change.

Suggested Read: How PropTech in India Is Reshaping Real Estate Growth

Policy Reforms That Have Changed the Operating Environment

Over the past decade, India has introduced critical reforms aimed at transforming the real estate sector, shifting it from a fragmented, delay-prone system to one that promotes transparency, accountability, and efficiency. 

Ashwinder R. Singh, through his role in the CII Ease of Doing Business National Task Force, has actively contributed to the development and advocacy of these reforms.

Key changes have focused on simplifying the approval process, implementing standardised frameworks, and driving digitisation. These reforms have created a more predictable environment, benefiting both developers and homebuyers.

To understand the specific changes, let’s explore the key national-level reforms that have impacted the real estate sector.

Key National-Level Reforms Impacting Real Estate

India has introduced several reforms aimed at improving the operational efficiency of the real estate sector, ensuring transparency, and timely project delivery. 

Here’s a look at the specific changes that have changed the sector:

1. RERA (Real Estate (Regulation and Development) Act)

Introduced in 2016, RERA mandated registration of projects and agents, ensuring timely project delivery, transparency in payments, and a standard grievance redressal mechanism for buyers. This drastically reduced delays and fraud in transactions.

2. Single-Window Clearance System

Various states have implemented systems allowing developers to apply for multiple clearances (environmental, building, fire) through one portal, reducing approval times and administrative burdens.

3. Digitisation of Land Records and Title Registration

The government launched the Digital India Land Records Modernisation Programme (DILRMP) to digitise land records, improving the accuracy of property titles and speeding up transactions. This also reduces litigation over land ownership.

4. Affordable Housing Initiatives

Schemes like PMAY (Pradhan Mantri Awas Yojana) offer tax benefits and financial incentives to developers constructing affordable housing. This initiative encourages private investment and helps meet the growing housing demand in India.

5. Insolvency and Bankruptcy Code (IBC) Reforms

For the first time, the IBC allowed real estate developers facing financial distress to restructure legally. This provides an exit option for struggling developers, while protecting creditors and improving financial discipline in the sector.

6. Smart Cities Mission

With a vision to build 100 smart cities, this initiative has created demand for sustainable, tech-driven urban development and infrastructure. It positions India as a hub for innovative and future-proof real estate investments.

7. Faster Project Approvals for Residential and Commercial Projects

National policies, such as Model Building Bye-Laws and Green Building Norms, simplify approval processes for developers. This makes it easier to plan, obtain permissions, and meet sustainability standards, reducing delays.

These reforms have significantly improved the ease of doing business in real estate, but the role of DPIIT and CII in driving these changes has been essential in ensuring their effective implementation and impact.

For developers looking to apply ease-of-doing-business reforms in large-scale projects, BCD India’s experience offers valuable insights. 

With a strong track record in compliant project execution, BCD India ensures reforms are effectively integrated into every stage of development.

DPIIT’s Role in Improving Ease of Doing Business

The Department for Promotion of Industry and Internal Trade (DPIIT) has played a key role in improving the ease of doing business in India, particularly in real estate. Through streamlining regulatory processes, simplifying approvals, and enhancing transparency, DPIIT is helping create a more efficient and predictable environment for developers and investors.

Ashwinder R. Singh, as a prominent industry leader, has actively advocated for reforms that address the inefficiencies in India’s regulatory systems.

His deep understanding of real estate operations, combined with his strategic role in the CII Ease of Doing Business National Task Force, has contributed to the push for policies that not only reduce bureaucratic delays but also drive the sector toward more sustainable and efficient practices.

Here's how DPIIT has changed real estate reforms:

1. Faster Project Approvals: Regulatory coordination between central and state ministries has reduced approval times, enabling developers to start projects without unnecessary delays.

2. Digitisation of Land Records: The Digital India Land Records Modernisation Programme has made land transactions faster and more transparent, reducing legal disputes.

3. Increased Transparency: DPIIT’s push for project disclosures and regulatory measures has enhanced transparency, making it easier for developers to comply and for buyers to trust.

4. Improved Access to Financing: Clearer compliance processes have improved developers’ credit profiles, making it easier to secure financing and reducing costs.

5. Boost to Investment Confidence: Investment-friendly policies have attracted both domestic and foreign capital, fueling growth and stability in the real estate market.

DPIIT’s efforts have been essential, but the collaboration with industry bodies like CII further drives the success of these reforms.

CII’s Partnership in Driving Ease of Doing Business

The Confederation of Indian Industry (CII) has played a pivotal role in advocating for reforms that directly improve the ease of doing business in real estate. 

Through its close partnership with DPIIT, CII has helped align industry practices with national policy changes, driving measurable improvements in project execution and reducing regulatory bottlenecks.

Ashwinder R. Singh’s leadership within the CII Ease of Doing Business National Task Force has been key in shaping these reforms, ensuring they translate into practical, on-the-ground changes for developers and investors. 

His insights have helped drive policy shifts that make it easier to launch and execute real estate projects more efficiently.

Here's how CII has contributed to real estate reform:

1. Simplified Approval Processes and Reduced Delays

CII advocated for the single-window clearance system, which has reduced approval times in key states. This reform directly impacts developers, enabling them to start projects faster and reducing holding costs.

2. Standardisation Across States

Through its collaboration with DPIIT, CII has ensured uniformity in real estate regulations across states. This standardisation eliminates confusion, reduces compliance costs, and makes project execution smoother for developers working in multiple regions.

3. Support for Sustainable Real Estate Development

CII’s advocacy for green building norms has led to national incentives for sustainable construction. Developers now benefit from tax breaks and financial incentives, which reduce the cost of eco-friendly projects and attract investors interested in sustainable assets.

4. Public-Private Partnerships Driving Large-Scale Projects

CII has promoted public-private partnerships (PPPs), ensuring that developers can access government support for large-scale urban projects, improving project scale and efficiency while aligning with national infrastructure goals.

5. Improved Transparency and Trust

By pushing for stronger RERA compliance, CII has helped establish clear regulations that foster trust between developers and buyers. This has resulted in fewer legal disputes and better investor confidence in the market.

With CII's proactive role in policy reform, the real estate sector is now better equipped to navigate regulatory challenges. This sets the stage for understanding what ease of doing business reforms mean for developers.

Suggested Read: How Single Window Clearance Real Estate India Works

How These Reforms Benefit Homebuyers and Investors

The recent reforms in India's real estate sector have made significant strides in improving transparency, reducing risks, and ensuring better regulatory compliance.

These reforms have had a direct impact on both homebuyers and investors, addressing their unique needs and concerns. Here's how:

Impact on Homebuyers

• Increased Transparency in Transactions: RERA’s project registration and regular updates provide homebuyers with clear insights into project timelines, reducing uncertainty and improving trust in developers’ commitments.

• Timely Possession Guarantees: With RERA’s strict deadlines, developers are now held accountable to deliver homes on time, giving homebuyers greater confidence in receiving possession without delays.

• Efficient Grievance Redressal: RERA has introduced a structured, time-bound process for addressing complaints, enabling homebuyers to resolve disputes swiftly, reducing frustration and ensuring greater satisfaction.

• Clear Property Titles and Ownership: The digitisation of land records ensures that property titles are verified and accurate, significantly lowering the risk of fraud and providing security for homebuyers in the transaction process.

Impact on Investors 

• Reduced Investment Risks: RERA and digitised land records improve transparency and legal compliance, directly reducing the risk of fraud and disputes, ensuring more secure investments for both domestic and international investors.

• Predictable Returns: With clear project timelines and regulatory frameworks in place, investors can accurately estimate returns and make better-informed decisions, reducing uncertainty in project profitability.

• Easier Access to Market Data: Reforms have improved data transparency, enabling investors to access accurate and up-to-date project information, empowering them to make more informed investment choices.

• Streamlined Compliance: Standardised and simplified compliance processes have reduced delays and uncertainty, ensuring more predictable investment timelines and faster project execution.

While these reforms have created significant improvements, there are still areas that require attention to further optimise real estate operations. 

The ongoing collaboration between industry leaders like Ashwinder R. Singh and policy bodies will continue to drive these changes forward, ensuring sustainable growth and more efficient execution in the future.

The Road Ahead: How New Labor Laws Will Impact the Real Estate Sector

India's real estate sector, valued at $385.18 billion in 2024, is projected to grow to $1 trillion by 2030. Recent labor reforms, introduced through the four new labor codes, are expected to have a significant impact on the sector, particularly on affordable housing.

Ashwinder R. Singh explains, these reforms will transition the industry from an informal, contractor-driven system to one with a more stable, institutional workforce. This means clearer governance, better pay, and more protection for workers.

Key Insights:

• Shift to Formal Workforce: The new labor laws will reduce reliance on informal contractors, creating a more stable, compliant workforce across real estate projects.

• Improved Project Execution: Ashwinder believes that having well-governed, trained labor will improve project execution, reduce errors, and increase overall reliability.

• Short-Term Costs, Long-Term Gains: The shift will increase upfront labor costs as the industry adapts, but in the long run, these reforms will improve the overall quality of projects and reduce risks.

• Boost to India’s Global Competitiveness: The reforms will align India’s labor practices with global standards, attracting international investors and making the market more competitive.

While these changes might cause short-term challenges, Ashwinder views them as crucial for building a more efficient and stable real estate market. 

He believes that better-governed labor will lead to improved project timelines, reduced errors, and a stronger reputation for India’s real estate sector globally.

Wrapping Up

Recent reforms in India's real estate sector have significantly improved transparency, efficiency, and regulatory compliance. While challenges remain, these changes are paving the way for more predictable and global-grade real estate practices.

Ashwinder R. Singh's leadership in the CII Ease of Doing Business National Task Force has been central in shaping these reforms and ensuring their alignment with real-world needs.

For insights on the latest real estate trends and updates from Ashwinder R. Singh, who is shaping the industry through his involvement in CII's reform efforts, subscribe to his newsletter.

FAQs

1. How do state-specific building codes impact real estate projects?

State-specific building codes often lead to inconsistencies, slowing down project approvals and increasing costs. Standardisation of these codes would streamline approvals and reduce delays.

2. What challenges do developers face when obtaining funding for large projects?

Developers often struggle with securing financing due to unpredictable approval timelines and compliance risks. Clearer regulations and transparency are needed to improve lender confidence and reduce financing costs.

3. How does the digitisation of property registration impact transaction efficiency?

Digitisation speeds up the property registration process by eliminating manual errors and reducing paperwork. This makes transactions faster, more secure, and less prone to legal disputes.

4. What role does the Smart Cities Mission play in urban real estate growth?

The Smart Cities Mission drives demand for modern, tech-enabled real estate developments, focusing on infrastructure and sustainable living solutions, thus increasing the attractiveness of urban spaces for developers and investors.

5. How do green building certifications impact project costs and marketability?

Green building certifications increase initial project costs but add long-term value by attracting eco-conscious buyers and investors. These certifications also help reduce operational costs through energy-efficient designs.