Wednesday, April 24, 2024

74% of projects launched post RERA in H2 2017 and 2018 completed in Hyd

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About 74% of projects launched post RERA in H2 2017 and 2018 have been completed in Hyderabad. One of the primary aims of the Real Estate Regulatory Act (RERA) was, and continues to be, safeguarding homebuyers from the harrowing issue of delayed and stalled housing projects. To a large extent, this objective is being achieved.

Latest ANAROCK research data finds that at least 86% of the residential projects launched in the post-RERA period from H2 2017 and entire 2018 have been completed. Hyderabad witnessed 110 projects launched in the period, of which 81 (74%) have been completed. The total number of launched units stood at approx. 24,215.

Only H2 2017 & 2018 projects have been considered because on an average, it does not take more than five years to complete most housing projects, with the exception of large townships.

Out of a total of 1,642 RERA-registered residential projects launched in the top seven cities in these 1.5 years, at least 1,409 have been completed, despite major headwinds like Covid-19 and supply chain disruptions of the war in Europe. At 90%, Chennai saw the highest number of project completions among the top seven cities.

Anuj Puri, Chairman – ANAROCK Group, says, “When it comes to ensuring timely delivery of residential real estate projects, RERA has delivered resoundingly wherever it has been fully deployed. The overall completion rate of 86% across the top 7 cities in the 1.5 following RERA implementation is remarkable, especially considering the market circumstances prior to its deployment.”

Notably, these project completions took place during a period when the construction activity was severely impacted by the pandemic-induced lockdowns.

From H2 2017 onward, a ‘delivery at all costs’ approach has taken firm root, predictably spearheaded by the country’s leading developers. More than 4.02 lakh homes were completed in 2022 across the top 7 cities – the highest yearly completions since 2017.

There are projects that remain incomplete across cities for various reasons. In some cases, there are large-size projects which take longer to complete while in others, projects by smaller developers have been roadblocked by liquidity and/or regulatory compliance issues. Amid soaring inflation of input costs, only financially strong developers can keep their projects on track. Progress on many projects has also been held back by the impact of the recent pandemic on construction activity.

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