Delhi-NCR air pollution: Construction ban hits real estate sector

Delhi Air Pollution: Centre has banned construction activities in Delhi-NCR area for a month to curb the air pollution. While the move is pretty much required, it is ought to affect the real estate sector as ongoing projects will be delayed.

The Commission for Air Quality Management (CAQM) has invoked stage III of the Graded Response Action Plan (GRAP), which includes a ban on all non-essential construction and demolition activities in Delhi-NCR. GRAP action depends on four stages of pollution: Stage I - 'poor' (AQI 201-300); Stage II - 'very poor' (AQI 301-400); Stage III - 'severe' (AQI 401-450); and Stage IV - 'severe plus' (AQI above 450).

Impact on real estate

Real estate developers who spoke to Mint and Moneycontrol have said that the move will delay the delivery of projects, and impact builders as well as homebuyers. Moneycontrol quoted Manoj Gaur, chairman, Confederation of Real Estate Developers' Associations of India (CREDAI)-National and said that a ban for one month will delay the delivery on average by at least two to three months.

“A one-month construction ban will lead to delays of at least two to three months in project completion. The real estate sector is concerned that blanket bans, while addressing pollution, may lead to increased project costs and affect the livelihood of construction workers,” Gaur told Moneycontrol.

While assuring that the developers are proactively undertaking measures like sprinkling water regularly and installing anti-smog machines to mitigate pollution, he added that the ban may lead to increased project costs and affect the livelihood of construction workers

Some told Moneycontrol that government should adopt a case-by-case approach when implementing air pollution regulations, and control vehicular emissions and roadside dust, which are the main sources of pollution.

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Meanwhile Nayan Raheja, Raheja Developers told Mint that he agrees with the government to balance the rising pollution levels in and around the national capital. He further added that they would continue with soft activities that do not contribute to pollution to continue the construction process.

“As the authorities had to ban construction activities to balance the degrading air quality, it might pose a challenge for the real estate sector . However, we believe that this measure is quite important to balance the rising pollution levels in and around the national capital. We hope to continue with soft activities that do not contribute to pollution to continue the construction process," Nayan Raheja, Raheja Developers told Mint.

Homebuyers on ban

Homebuyers who had invested in flats in Delhi-NCR are not very thrilled about the ban. Adwitiya Sharma, a homebuyer in Gurugram told Moneycontrol that the ban will delay the project that is already running behind schedule.

“I was scheduled to get possession of my flat in July this year, but it is still not completed. The CAQM ban on construction activities will delay the delivery of my flat further,” Sharma told Moneycontrol.

Meanwhile, some others call for a quick and sustainable solution for the pollution menace.