Large scale projects are getting delivered faster

Developers are able to complete large scale projects in less than five years since 2014 against 6 years before that as modernisation of construction technology and implementation of Real Estate Regulatory Authority (RERA) has ensured homebuyers are getting the home in time.According to Anarock data, the average time taken to complete smaller projects of less than 500 units in the top 7 cities was 4 years, and 4.9 years for large projects of more than 500 units each.Market share of large and listed developers, has also increased significantly, which has contributed to timely delivery of the projects.”Large and listed players account for nearly 34% of the market today. The stringent rules imposed on project delays by the regulatory authorities have also been a key factor in reducing the completion time,” said Anuj Puri, chairman of Anarock group.When it comes to completing large projects, the top southern cities were ahead of their northern, western, and eastern counterparts. For all large projects launched and completed between 2014 and H1 2024, the average completion time was lowest in Chennai with 3.6 years, while Hyderabad and Bangalore clocked in at 4.2 and 4.8 years respectively.“For most large projects in NCR and MMR, developers had purchased land outright, thereby compromising their overall financial health and delivery capability. On the other hand, most projects in the main southern cities are joint developments where landowners usually get a certain share of the developed units,” said Puri. In NCR, extreme weather conditions and the statutory restrictions imposed on construction when the pollution levels rise also play affect construction timelines in the region. Most developers have gradually reduced their leverage and with stronger financial conditions, are able to focus on execution.It is noteworthy that at 36%, Chennai has the highest reduction of construction time among the top 7 cities, despite incessant rains during the monsoon season causing major challenges.In Kolkata, large projects launched and completed between 2014 to H1 2024 took the longest average time to complete, at 5.7 years.As larger projects gain momentum across the cities and new construction technology is implemented, construction time will reduce further. Continuity of execution across major projects is becoming a major factor with financially sound developers whose sales volumes have enabled continued cashflows.



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