86% housing projects launched between July 2017-December 2018 are completed, says a real estate consultant Anarock
According to real estate consultant Anarock, 86% of the 1,642 housing projects that were started in seven major Indian cities between July 2017 and December 2018 have been finished. It was prompted by more stringent rules established by the 2016 Real Estate (Regulation and Development) Act (RERA), a real estate law.
RERA has ensured timely delivery of residential real estate projects, says Mr. Anuj Puri, Chairman, Anarock. Given the market conditions before Rera's deployment, the overall completion rate of 86% across the top seven cities in the 1.5 years following its adoption is exceptional.
It further stated that despite significant headwinds like COVID-19 and the disruption of the supply chain because of war in Europe during the period in consideration, RERA has ensured all its timely deliveries.
Rera was passed in Parliament in March 2016. The law provides for mandatory registration of projects (above 500 square meters and above eight apartments) with Rera before launch. Anarock said that out of a total of 1,642 Rera-registered residential projects launched in the seven major cities during the July 2017-December 2018 period, at least 1,409 were completed.
According to Mr. Mohit Jain, Managing Director (MD), Krisumi Corporation, the efforts by state and central governments have resulted in positive outcomes for RERA.
The introduction of Rera has reinvigorated prospective homebuyers with unwavering confidence, assuring them that their investments are protected and their dream homes will be completed on schedule, says Mr. Pradeep Aggarwal, Chairman, Signature Global. He also mentioned that governments have played a major role in the effective enforcement of this law.
Chennai saw the highest number of project completions among the top seven cities. Out of 119 projects launched in Chennai, 107 are complete. In Bengaluru, a total of 172 housing projects were launched during this period, of which 147 (85%) have been completed, according to the Anarock report.
Real estate developers have completed 81 housing projects out of 110 launched in Hyderabad, while in Delhi-NCR, 64 projects have been constructed out of 86 launched. In Kolkata, as many as 83 projects were launched, and 58 are already complete. In the Mumbai Metropolitan Region (MMR), developers launched 679 housing projects; out of that, 602 projects (89%) have been completed.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.