Homebuyers waiting time has been reduced largely by builders cutting down project completion time by 20%. This data has been published by Anarock.
The average time taken to complete real estate projects is lowest in Chennai, Hyderabad, and Bengaluru homebuyers’ waiting time for new flats. At 36%, Chennai saw the highest reduction of construction time among the top 7 cities in the last decade, despite incessant rains during the monsoon season.
Compared to previous years, the completion of large real estate projects across the country has reduced its average period of completion to 4.9 years, a frequency that was 20 percent less than usual. In H12024 it was 6.1 years less than what it was in 2019. The Southern cities were already significantly ahead of their counterparts from the North, West, and East on the homebuyers waiting time to occupy their dream home.
Chennai completed the large projects within the shortest time with an average completion time of 3 years on all the projects that started and were completed between 2014 and H1 2024. Hyderabad and Bengaluru took 4 years each for the construction of such buildings respectively in the same period, an analysis by Anarock has said.
This is because many projects in the main southern cities are usually joint developments in which the landowners are entitled to a specified number of developed units. In the case of most large projects in NCR & MMR the developers had directly bought the land which statistically weakened the general financial position & delivery capacity of developers, the analysis revealed.
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, it showed.
Owing to housing RERA, modernizing construction technology, and big and listed developers’ rising market shares are said to have resulted in the shortening of project completion timelines. In the last decade (2014-H1 2024) has thus ensured homebuyers in the big under-construction projects in the top 7 cities, the waiting time for homebuyers has reduced by four years for possession from an average of at least 6 years in the period of 2010 to 2019.
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 cash flows, the analysis showed.
The latest ANAROCK data shows that large residential projects of 500 units and above took an average of 4 years to complete in the top 7 Indian cities. Currently, a very significant chunk of nearly 34% of the market is captured by the large and listed gamers. The regulatory authorities have also imposed stringent rules on time extension and this in one way contributed to enhancing the speed of completion,” added Anuj Puri, chairman – ANAROCK Group.
In NCR, factors that affect the construction period in the region such as extreme weather conditions, and statutory restrictions on construction activities when levels of pollution rise have had an impact. Most developers have gradually gotten back to taking control of the situation and with better capital position, can now concentrate on delivery, Puri added.
Homebuyers Waiting Time on Large & Small Real Estate Projects: Completion Time (2014-H1 2024)
There was an analysis of projects launched and completed between 2010 and 2019, compared to 2014 till H1 2024 in the top 7 cities, it was further classified into projects with over 500 units each.
The lengthiest average period of homebuyers waiting time for completion was found in Kolkata concerning the largescale projects that were initiated and concluded between 2014 and the first half of the year 2024, At 5.7 years, it took homebuyers in Kolkata the longest to wait for big projects which is only a 10% decrease from 6.3 years in 2019.
In MMR, it took around 5.2 years for large projects and 4.7 years to complete small projects. In MMR, the average completion time in H1 2024 reduced to 5.2 years in H1 2024, from 6.5 years in 2019, the reduction has been about 20%.
The analysis demonstrated that in Pune, the average completion time for small projects was 4.3 years and for large ones 5.4 years.
In the National Capital Region, a homebuyer’s waiting period has been an average of 4.7 years for small projects and 5.4 years for large ones; in essence, this means that, on average, someone would wait for almost five years before they could move into their dream house.
The analysis indicated that small projects took 4.8 years and 3.5 years in Bengaluru while large projects were accomplished in 4.2 and 3.6 years in Chennai and Hyderabad respectively.