With the agony of homebuyers in NCR well-documented, a latest report has highlighted that large projects were delayed by 7.2 years due to factors ranging from litigation issues to the developers' lack of professionalism and periodic construction bans, as per a report by Anarock.
For the top-7 cities collectively, the average completion time for large projects stood at 6.5 years.
The southern cities were ahead of their northern, western and eastern counterparts in project completions. For all large projects launched and completed over the last decade, the average completion time was least in Bengaluru and Hyderabad with around 5.5 years each. Chennai came close behind with an average completion time of 5.6 years, the report said.
The average time taken to complete smaller projects of 100-500 units each in the top 7 cities was 5.2 years, and 6.5 years for large projects of more than 500 units each.
Individually, residential projects launched and completed between 2010 to 2019 in Delhi-NCR took the longest average time to complete for both small and large size projects – 6 years and 7.2 years respectively.
In MMR, it took an average of 5.4 years to complete small projects and around 6.5 years for large projects. In Pune, the average project completion time was 5 years for small projects and 6.2 years for large ones.
In Kolkata, homebuyers waited an average of 4.8 years for small projects and 6.3 years for large ones.
The southern cities were visibly ahead – in both Bengaluru and Hyderabad, the average completion time for small projects was 4.4 years each, and 5.5 years for large projects. In Chennai, it was 4.2 years for small projects and 5.6 years for large ones, the report said.
To calculate the average time for project completions across the top cities, all projects launched and completed between 2010-2019 were analysed. These were further segregated into small-size with 100-500 units/project and large-size having more than 500 units.
For most projects in NCR, developers had purchased land outright, thereby compromising their overall financial health and delivery capability. Most projects in the main southern cities are joint developments where landowners usually get a certain share of the resulting units. Extreme weather conditions – both hot and cold - in NCR must also be considered as a factor to some extent.
“The difference of 1.5 years of average completion time between NCR and the southern cities may not seem significant at a macro level. However, this period must be measured in the real-time strain it adds on consumer patience and optimism. Among the major reasons for NCR to trail behind are project delays due to land ligation issues, many developers’ lack of professionalism in project delivery, and also the periodic construction bans by both NGT and the apex court due to rising pollution levels,” said Anuj Puri, Chairman - ANAROCK Property Consultants.