Mumbai

Half of delayed projects are in MMR: study

Slow progress: Over two lakh delayed units are concentrated in Mumbai, Navi Mumbai and Thane.

Slow progress: Over two lakh delayed units are concentrated in Mumbai, Navi Mumbai and Thane.   | Photo Credit: Dhiraj Singh

1,665 RERA-registered housing projects delayed by over five years across country

Over half the housing projects that have been delayed by over five years and likely to be completed after 2020 are in the Mumbai Metropolitan Region (MMR), according to data available with PropTiger.com.

Running behind schedule

In 10 prime residential markets of the country, as many as 1,665 housing projects registered with the Real Estate Regulatory Authority (RERA) have been delayed. Of these, 880 projects with over two lakh units are concentrated in the MMR (Mumbai, Navi Mumbai and Thane).

A total of 125 projects are delayed across Noida, Greater Noida and Gurugram markets, consisting of over one lakh housing units.

The markets covered in the study were Ahmedabad, Bengaluru, Chennai, Gurugram, Hyderabad, Kolkata, Mumbai, Noida, Greater Noida and Pune.

While the budget range for housing projects in the MMR was kept at ₹2 crore, it was less than ₹1.50 crore for the other markets. Units of only up to 200-square metre carpet area were considered in the study.

“Liquidity issues could be cited as the single biggest reason behind project delays in India, a phenomenon that has had an absolutely negative impact on buyer sentiment,” said Mani Rangarajan, Group COO, Elara Technologies, which owns PropTiger.com. He said the ₹25,000-crore lifeline extended by the government in the form of an alternative investment fund (AIF) would change the situation.

Mr. Rangarajan said, “Housing projects in the MMR are more likely to meet the net worth-positive and litigation-free conditions set under the AIF. This would mean a large part of the fund could be spent on completing projects in the Mumbai market. Because Mumbai is an expensive property market, the cost of project completion here would be comparatively lower than the ultimate price realisation. This would only help Mumbai’s case further.”

Project-delay wise, Hyderabad and Pune follow the MMR on the list, where as many as 276 and 241 housing projects have been delayed for over five years respectively. Hyderabad has one of the lowest figures in terms of units with 15,138 delayed homes. However, in Pune, over 47,000 housing units have been delayed.

Chennai lowest on list

Chennai has the lowest number of delayed projects (24) as well as units (11,679). This is primarily because the size of housing projects in this property market is comparatively smaller. Typically, builders launch housing projects with 50 units or less in Chennai, enabling them to complete the projects in a shorter time span. The chances of cost overruns in such projects are also low.

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Printable version | Feb 18, 2020 12:40:30 AM | https://www.thehindu.com/news/cities/mumbai/half-of-delayed-projects-are-in-mmr-study/article30030886.ece

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