Avg. Time for Completion of Residential Projects Decreases in Top 7 Cities
In a positive development for homebuyers in India, the average time taken to complete residential projects with 500+ units in the top 7 cities has decreased from 6.1 years in the 2010-2019 period to 4.9 years in the period from H1 2014 to H1 2024. This significant reduction can be attributed to various factors including the implementation of the Real Estate (Regulation and Development) Act (RERA), the adoption of modern construction methods, and the growing presence of large and listed developers in the market.
Chennai Witnesses the Highest Decrease in Completion Time
Among the top 7 cities, Chennai has recorded the most substantial decrease in completion time for large residential projects. The average completion time in Chennai reduced by 36% – from 5.6 years in 2019 to 3.6 years in H1 2024. This achievement is particularly notable considering the challenges posed by continuous monsoon rains in the region.
Other Southern Cities Demonstrate Impressive Performance
Notably, the southern cities surpass their northern, western, and eastern counterparts when it comes to completing large projects within a shorter time frame. Hyderabad and Bangalore achieved completion times of 4.2 and 4.8 years respectively. These cities have benefited from advancements in construction technology and the efficiency of large developers operating in their markets.
NCR Witnesses a Significant Reduction in Completion Time
The National Capital Region (NCR) has also experienced a notable decrease in the time taken to complete large residential projects. From a duration of 7.2 years in 2019, the completion time for projects in the NCR decreased by 25% to 5.4 years in H1 2024. This reduction can be attributed to a combination of factors including improved construction practices and the influence of RERA.
Mumbai Metropolitan Region (MMR) and Kolkata Exhibit Varied Performance
In the Mumbai Metropolitan Region (MMR), the average completion time for large residential projects decreased from 6.5 years in 2019 to 5.2 years in H1 2024, representing a reduction of 20%. Kolkata, on the other hand, lags behind other cities with an average completion time of 5.7 years for large projects, indicating only a 10% reduction from 2019.
Smaller Projects Also Witness Decreased Completion Time
The positive trend of reduced completion time is not limited to large projects alone. In the case of small residential projects with 100-500 units in the top 7 cities, the average completion time decreased to 4.0 years in H1 2024, down from 4.9 years in 2019.
In conclusion, the decrease in the average time taken to complete residential projects in the top 7 cities is a welcome development for homebuyers. The implementation of RERA, along with the adoption of modern construction practices and the presence of reputable real estate players, has significantly improved efficiency in the sector. However, further efforts are needed to reduce completion times and provide homebuyers with faster possession of their properties.
