At 7 Years, NCR Saw Longest Project Completion Time in Last Decade
In a significant trend seen in the last decade, home-buyers in NCR had to wait for the longest time to get possession of their flats among the top 7 cities
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The latest data from ANAROCK Property Consultants, a leading real estate consultancy company, shows that the average completion time for large residential projects in the National Capital Region (NCR) stood at 7.2 years for the projects that were launched and completed between 2010-2019. "For the top 7 cities collectively, theaverage completion timefor large projects stood at6.5 yearsin this period," said Anuj Puri, Chairman, ANAROCK.
The southern cities were markedly ahead of their northern, western and eastern counterparts in project completions, the report added.
To calculate the average time for project completions across the top cities, all projects launched and completed between 2010-2019 were analysed, said ANAROCK. These were further segregated into small-size with 100-500 units/project and large-size having greater than 500 units.
“The difference of 1.5 years of average completion time between NCR and the southern cities may not seem significant at a macro level,” says Puri. “However, this period must be measured in the real-time strain it adds on consumer patience and optimism. Among the major reasons for NCR to trail behind are project delays due to land ligation issues, many developers’ lack of professionalism in project delivery, and also the periodic construction bans by both NGT and the apex court due to rising pollution levels,” he said.
For most projects in NCR, developers had purchased land outright, thereby compromising their overall financial health and delivery capability. Most projects in the main southern cities are joint developments where landowners usually get a certain share of the resulting units. Extreme weather conditions – both hot and cold - in NCR must also be considered as a factor to some extent.
Small & Large Projects: Completion Trends
The average time taken to complete smaller projects of 100-500 units each in the top 7 cities was 5.2 years, and 6.5 years for large projects of >500 units each.
- Individually, residential projects launched and completed between 2010 to 2019 in Delhi-NCR took the longest average time to complete for both small and large size projects – 6 years and 7.2 years respectively.
- In MMR, it took an average of 5.4 years to complete small projects and around 6.5 years for large projects.
- In Pune, the average project completion time was 5 years for small projects and 6.2 years for large ones.
- In Kolkata, home-buyers waited an average of 4.8 years for small projects and 6.3 years for large ones.
- The southern cities were visibly ahead – in both Bangalore and Hyderabad, the average completion time for small projects was 4.4 years each, and 5.5 years for large projects. In Chennai, it was 4.2 years for small projects and 5.6 years for large ones.