Indian Homebuyers' Wait for Possession Reduces to 4.9 Years: A Decade of Progress
The last decade has seen a significant reduction in homebuyers' wait for possession in India's top cities, thanks to regulatory reforms and advancements in construction technology.
Indian Real EstateHomebuyersPossessionReraConstruction TechnologyReal Estate MumbaiJul 14, 2024
This reduction can be attributed to the combined effect of the Real Estate Regulatory Authority (RERA), modernisation of construction technology, and the increasing market share of large and listed developers. The stringent rules imposed on project delays by regulatory authorities have also played a crucial role in reducing the completion time.
Interestingly, Chennai has emerged as the city with the lowest average completion time, at 3.6 years. Hyderabad and Bengaluru followed closely, with average completion times of 4.2 and 4.8 years, respectively. In contrast, large projects in Delhi-NCR and Mumbai Metropolitan Region (MMR) took longer to complete, with average times of 5.4 and 5.2 years, respectively.
The report also highlights the differences in land acquisition practices between cities. While developers in Delhi-NCR and MMR often purchase land outright, compromising their financial health and delivery capability, joint development projects are more prevalent in southern cities like Chennai and Hyderabad. In these joint developments, landowners receive a share of the developed units, reducing the financial burden on developers.
Weather conditions and statutory restrictions on construction in Delhi-NCR also affect construction timelines in the region. Kolkata, on the other hand, took the longest average time to complete large projects, at 5.7 years.
information Anarock Group, a leading real estate consultancy firm, released the report, which provides insights into the Indian real estate market. The firm's Chairman, Anuj Puri, credits the reduction in completion time to the combined efforts of regulatory authorities, developers, and advancements in construction technology.
Anarock Group is a leading real estate consultancy firm that provides comprehensive services to developers, investors, and homebuyers. With a strong presence in India's top cities, Anarock Group is known for its in-depth market research and analysis.
Frequently Asked Questions
What is the average time taken to complete residential projects in India's top cities?
The average time taken to complete residential projects in India's top cities is 4.9 years.
Which city has the lowest average completion time for large projects?
Chennai has the lowest average completion time, at 3.6 years.
What is the main reason for the reduction in completion time?
The combined effect of RERA, modernisation of construction technology, and the increasing market share of large and listed developers has led to the reduction in completion time.
How do land acquisition practices differ between cities?
While developers in Delhi-NCR and MMR often purchase land outright, joint development projects are more prevalent in southern cities like Chennai and Hyderabad.
What is the longest average time taken to complete large projects in any city?
Kolkata took the longest average time to complete large projects, at 5.7 years.
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