Anarock's latest report reveals a 20% reduction in average completion times for new residential projects across major Indian cities. Studying markets like Mumbai, Delhi-NCR, Chennai, Bengaluru, Pune, Hyderabad, and Kolkata, the report compares projects launched between 2014 and June 2024, which averaged 4.9 years to complete. This marks an improvement from 6.1 years for projects launched between 2010 and 2019. Mumbai and Delhi-NCR lead with notable drops in construction timelines, attributed to stricter regulations under RERA and market consolidation among larger developers. Despite improvements, Kolkata lags at 5.7 years due to delayed RERA implementation and local market challenges.
A recent report by Anarock, a real estate consultancy, shows a significant reduction in the time it takes to complete new residential projects in India.
The report studied seven major housing markets - Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Chennai, Kolkata, Bengaluru, Pune, and Hyderabad. It found that projects launched between 2014 and June 2024 took an average of 4.9 years to complete. This is a 20% improvement compared to projects launched between 2010 and 2019, which took an average of 6.1 years.
The report highlights some particularly impressive improvements. In Mumbai, construction timelines dropped from 6.5 years to 5.2 years for projects launched between 2014 and June 2024. Similarly, Delhi in the NCR saw a decrease from 7.2 years to 5.4 years.
While most cities saw faster completion times, Kolkata remains an outlier. Projects launched between 2014 and June 2024 still take an average of 5.7 years to complete. This is only a minor improvement from the 6.3 years for projects launched between 2010-2019.
Experts attribute this positive trend to two major factors. Firstly, the implementation of the Real Estate (Regulation and Development) Act (RERA) in 2016 has brought more transparency and accountability to the sector. This includes stricter timelines, penalties for delays, and escrow accounts for project funds. Secondly, a market consolidation towards larger developers with better financial resources has also contributed to faster completion times.
Kolkata's delay in implementing RERA is seen as a key factor in its slower progress. The state initially had its own real estate regulatory mechanism, the West Bengal Housing Industry Regulatory Act (WBHIRA), which was deemed unconstitutional by the Supreme Court. The West Bengal Real Estate Regulatory Authority (WBRERA) was finally operationalised in December 2022, but stakeholders believe a period of uncertainty might have caused delays in some projects.
Local developers in Kolkata also point to additional challenges. Relatively lower sale prices compared to other cities limit their resources for construction equipment and manpower. Additionally, the city's complex urban landscape with a mix of old and new structures, can present logistical challenges for projects, potentially requiring more time to navigate the planning process.
Overall, the report highlights a positive trend in residential project completion times across major Indian cities. While Kolkata remains a challenge with an average completion time of 5.7 years, the national average has dropped to 4.9 years. The implementation of RERA and market consolidation are seen as key drivers of faster project delivery.
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