Sanjay Dutt, MD & CEO of Tata Realty & Infrastructure Ltd, spoke at the India Today Conclave South 2025 about the challenges facing India’s real estate sector.
He explained key steps needed to improve the ease of doing business and promote affordable housing across the country.
High Cost of Doing Business in Real Estate
Sanjay Dutt pointed out that India faces a high cost of doing business, especially in real estate. “India is one of high cost of capital, high cost of land. When you spend Rs 100, nearly Rs 85 is spent on land value in most tier one cities. In tier two cities, you spend nearly 50% on land and the rest is construction. Most of the money goes into the cost of capital,” he explained.
He added that delays in project approvals increase costs further. “If the government can process approvals in less than three months, including environmental clearances, and if we adopt precast construction technology, the project cycle can reduce from five years to two and a half years. This will improve affordability and allow faster scaling of projects,” Dutt said.
Standardising Approvals for Better Business
When asked about replicating the efficient model of places like Singapore and Dubai, Dutt explained the difficulties of India’s federal structure. “Many people refer to Singapore and Dubai, but they are one-city countries. We are a large country with a federation. Each state has its own rules and policies.”
He added, “If we standardise policies and frameworks, we can improve the system. For example, deemed approvals should be adopted. If you file for approval and don’t get it in two months, it should be considered approved. This puts pressure on government departments to perform and avoid delays.”
Tackling the Affordable Housing Challenge
Affordable housing remains one of the biggest challenges in India’s real estate sector. Dutt said, “The government takes away nearly 50% through taxes on property. This needs to be fixed upfront.”
He also mentioned land availability as a major bottleneck. “Government bodies like railway authorities, defense authorities, municipal corporations, and old trusts of India hold a lot of land that is not used. These should be monetised and unlocked so that private developers can use them for affordable housing.”
Dutt pointed out the importance of connectivity. “What’s the point of building affordable homes 50 kilometres from the city centre when people don’t have transport facilities? That is a very obvious challenge.”
