Improved Residential Project Completion Times in India: A 20% Reduction Across Major Cities
Recent report by Anarock reveals a significant decrease in residential project completion times in India, with Mumbai, Delhi-NCR, Chennai, Bengaluru, Pune, Hyderabad, and Kolkata showing improvement
Indian Real EstateResidential ProjectsConstruction TimelinesReraAnarockReal Estate MumbaiJul 25, 2024
The report studied seven major housing markets, including Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Chennai, Kolkata, Bengaluru, Pune, and Hyderabad. The findings highlighted significant improvements in construction timelines, with Mumbai and Delhi-NCR leading the way. In Mumbai, construction timelines dropped from 6.5 years to 5.2 years, while Delhi-NCR saw a decrease from 7.2 years to 5.4 years.
However, Kolkata remains an outlier, with projects launched between 2014 and June 2024 still taking an average of 5.7 years to complete. This is only a minor improvement from the 6.3 years for projects launched between 2010-2019. Experts attribute this slower progress to Kolkata's delay in implementing the Real Estate (Regulation and Development) Act (RERA).
The implementation of RERA in 2016 has brought more transparency and accountability to the sector, with stricter timelines, penalties for delays, and escrow accounts for project funds. Additionally, a market consolidation towards larger developers with better financial resources has also contributed to faster completion times.
Local developers in Kolkata point to additional challenges, including relatively lower sale prices compared to other cities, which limit their resources for construction equipment and manpower. The city's complex urban landscape, with a mix of old and new structures, also presents logistical challenges for projects, potentially requiring more time to navigate the planning process.
Despite Kolkata's slower progress, the report highlights a positive trend in residential project completion times across major Indian cities. The implementation of RERA and market consolidation are seen as key drivers of faster project delivery, with the national average completion time dropping to 4.9 years.
Information Anarock is a leading real estate consultancy firm that provides comprehensive services to its clients. With its expertise in the Indian real estate market, Anarock provides valuable insights and research reports to help stakeholders make informed decisions.
The West Bengal Real Estate Regulatory Authority (WBRERA) is the regulatory body responsible for overseeing the real estate sector in West Bengal.
Frequently Asked Questions
What is the average time taken to complete residential projects in India?
According to the report, projects launched between 2014 and June 2024 took an average of 4.9 years to complete.
Which cities have shown the most improvement in construction timelines?
Mumbai and Delhi-NCR have shown the most significant improvement, with construction timelines dropping from 6.5 years to 5.2 years and 7.2 years to 5.4 years, respectively.
What is RERA, and how has it impacted the real estate sector?
RERA is the Real Estate (Regulation and Development) Act, which was implemented in 2016. It has brought more transparency and accountability to the sector, with stricter timelines, penalties for delays, and escrow accounts for project funds.
Why has Kolkata's progress been slower compared to other cities?
Kolkata's delay in implementing RERA is seen as a key factor in its slower progress. Additionally, local developers in Kolkata face challenges such as relatively lower sale prices and complex urban landscapes.
What is the national average completion time for residential projects in India?
According to the report, the national average completion time for residential projects in India has dropped to 4.9 years.
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