New Delhi: Real estate developers have been completing large-scale projects in under five years since 2014, a marked improvement from the previous six-year timeframe, due to modernised construction technology and the implementation of the Real Estate Regulatory Authority (RERA), ensuring home buyers receive their homes on time, according to a report by a real estate consulting firm.In the top seven cities, the average completion time for smaller projects of fewer than 500 units is now four years, while larger projects with more than 500 units take about 4.9 years to complete, as per data from Anarock.The market share of large and listed developers has also increased significantly, contributing to the timely delivery of projects, the report noted.”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 at 3.6 years, while Hyderabad and Bengaluru 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 the NCR, extreme weather conditions and the statutory restrictions imposed on construction when pollution levels rise also affect construction timelines in the region. Most developers have gradually reduced their leverage and, with stronger financial conditions, are able to focus on execution.At 36%, Chennai has the highest reduction of construction time among the top seven cities, despite incessant rains during the monsoon season causing major challenges.In Kolkata, large projects launched and completed between 2014 and 2024 took the longest average time to complete, at 5.7 years. Construction time will further decrease as larger projects gain momentum across cities and implement new construction technology, said experts.Continuity of execution across major projects is becoming a big factor for financially sound developers whose sales volumes have enabled continued cash flows, they added.
Source link