As many as 1,665 RERA-registered housing projects have been delayed by over five years across India and likely to be completed only after 2020. Nearly 880 projects consisting of over two lakh units are from the Mumbai Metropolitan Region (MMR) alone, data available with PropTiger.com indicated.
A total of 125 projects are delayed across Noida, Greater Noida and Gurugram markets, consisting of over one lakh housing units.
“Liquidity issues could be cited as the single biggest reason behind project delays in India, a phenomenon that has had an absolutely negative impact on buyer sentiment. The Rs 25,000-crore lifeline extended by the government in the form of an AIF would change much of that,” said Mani Rangarajan, Group COO, Elara Technologies, a real estate technology platform that owns PropTiger.com, Housing.com and Makaan.com.
“Housing projects in the MMR are more likely to meet the net-worth-positive and litigation-free conditions set under the AIF. This would mean a large part of the fund could be spent on completing projects in the Mumbai market. Because Mumbai is an expensive property market, the cost of project completion here would be comparatively lower than the ultimate price realisation. This would only help Mumbai’s case further,” he added.
Real estate developers in Noida owned the city authority a whopping Rs 10,200 crore in dues in 2017.
Hyderabad and Pune follow MMR in the list, wherein as many as 276 and 241 housing projects have been delayed for over five years. In terms of units, however, Hyderabad has one of the lowest scores at 15,138 delayed homes, in the list of 10 cities. In Pune, over 47,000 housing units, delayed for more than half a decade, would reach completion post-2020, data showed.
Chennai has the lowest number of delayed projects (24) as well as units (11,679), primarily because the size of housing projects in this property market is comparatively smaller. Typically, builders launch housing projects with 50 units or less in Chennai which could be completed in a shorter time span. The chances of cost overruns in such projects are also low.
The markets covered in the analysis are Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai, Noida-Greater Noida and Pune. While the budget range for housing projects in the MMR has been kept at Rs 2 crore, it is less than Rs 1.50 crore for other markets. Units of only up to 200-square-metre carpet area have been covered in the analysis.