· Property worth $47 billion is locked in delayed projects across India, causing distress among homebuyers.
· The bulk of this is in the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR).
· Almost 1.8 lakh units valued at ₹1.22 lakh crore are facing an uncertain future in the NCR region (Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad).
· In MMR, which includes Mumbai, Navi Mumbai and Thane, 1.05 lakh units worth ₹1.12 lakh crore are pending completion.
· As per findings by PropEquity, a real estate analytics company, more than 4.65 lakh units in housing projects across India are running ‘significantly behind their delivery deadlines’ with ‘daunting’ construction delays.
· Total value of projects facing construction delays is ₹3.3 lakh crore ($47 billion).
· The National Capital Region accounts for more than 70% of projects that have failed to meet completion deadlines.
· These projects are on hold on account of financial constraints, execution challenges, surplus supply due to over-ambitious launches by developers, environmental clearances and slowing sales, among others.
· Funding is another issue. Most of the projects are stuck because their developers do not have funds to complete the projects.
· RERA, a law brought in to enforce strict norms on developers, has not helped solve the issue as it had allowed developers to offer new completion dates without facing financial penalties.
· One possible solution is for RERA to enforce original completion dates which will force developers to expedite these joint ventures.
· Under RERA, the developer has given a new completion deadline and is looking forward to hand over the units to those who had booked apartments.
· This has helped place stalled projects on the fast track. Developers believe the backlog will clear in the next 2-3 years.
Source : The Hindu