Housing project completion time drops
By : Sangeetha G
Update: 2024-07-14 07:45 GMT
Chennai: The average completion time of large residential projects have come down by 20 per cent since the pandemic. Chennai witnessed the highest reduction of 36 per cent.
The average time taken to complete projects with over 500 units have dropped to 4.9 years in 2024 compared to 6.1 years in 2019.
A combined effect of RERA, modernisation of construction technology, and the increasing market share of large and listed developers has led to reduction of construction time. Large and listed players account for nearly 34 per cent of the market.
When it comes to completing large projects, the top southern cities were markedly ahead of their northern, western, and eastern counterparts. Chennai saw the highest reduction of 36 per cent from 5.6 years in 2019 to 3.6 years in H1 2024. It came down to 4.8 years and 4.2 years in Bengaluru and Hyderabad.
While the National Capital Region saw a 25 per cent reduction from 7.2 years to 5.4 years, Mumbai saw a reduction of 20 per cent and Kolkata 10 per cent.
“For most large projects in NCR and MMR, developers had purchased land outright, thereby compromising their overall financial health and delivery capability,” said Anuj Puri, chairman, Anarock Group.
“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. 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,” he added.
In the case of smaller projects of 100 to 500 units, the top 7 cities saw average waiting time coming down to 4 years from 4.9 years.
The average time taken to complete projects with over 500 units have dropped to 4.9 years in 2024 compared to 6.1 years in 2019.
A combined effect of RERA, modernisation of construction technology, and the increasing market share of large and listed developers has led to reduction of construction time. Large and listed players account for nearly 34 per cent of the market.
When it comes to completing large projects, the top southern cities were markedly ahead of their northern, western, and eastern counterparts. Chennai saw the highest reduction of 36 per cent from 5.6 years in 2019 to 3.6 years in H1 2024. It came down to 4.8 years and 4.2 years in Bengaluru and Hyderabad.
While the National Capital Region saw a 25 per cent reduction from 7.2 years to 5.4 years, Mumbai saw a reduction of 20 per cent and Kolkata 10 per cent.
“For most large projects in NCR and MMR, developers had purchased land outright, thereby compromising their overall financial health and delivery capability,” said Anuj Puri, chairman, Anarock Group.
“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. 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,” he added.
In the case of smaller projects of 100 to 500 units, the top 7 cities saw average waiting time coming down to 4 years from 4.9 years.