Impact of litigation on the real estate market in Mumbai
Sahil Gandhi, Vaidehi Tandel, Alex Tabarrok, Shamika Ravi
The formal housing market in Indian cities has not been responsive to the growth in urban population. A striking feature of land and real estate markets in urban India is weak property rights, unclear titles, encroachment and complex regulatory processes which increase the likelihood of legal disputes and choke supply of land and housing. This paper aims to understand the impact of litigation on the real estate market in Mumbai by making use of a unique dataset on ongoing real estate projects. We find that litigations have a positive and statistically significant effect on completion times of projects and may be contributing to severe delays. Policy reforms focusing on improving land titling and tenure for urban land, simplifying regulations and process of granting approvals could help resolve this problem.
Event: Land Governance in an Interconnected World_Annual World Bank Conference on Land and Poverty_2018
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