The Real Estate Regulatory Act (RERA) aimed to protect homebuyers from project delays, and it's delivering on this goal. The latest Anarock Research data shows that 86% of residential projects launched in H2 2017 and throughout 2018, following RERA implementation, are now completed.
The survey focused on H2 2017 and 2018 projects since most housing projects take around five years, except for larger townships.
Out of 1,642 RERA-registered residential projects in the top 7 cities during this period, 1,409 are complete despite challenges like COVID-19 and supply chain disruptions. Chennai led with a 90% completion rate, where 107 out of 119 projects were finished.
Anuj Puri, Chairman of Anarock Group, praised RERA's impact on timely project delivery, especially considering market conditions before its introduction. Remarkably, these completions occurred during the pandemic when construction was heavily affected. Leading developers pushed for timely delivery, resulting in over 4.02 lakh homes completed in 2022 across these cities, the highest since 2017.
Puri noted regional variations, with Chennai at the forefront (90% completion) and Kolkata lagging behind (70%). Kolkata's delayed RERA implementation and subdued real estate activity contributed to this difference.
Various factors, including project size and developer strength, affect completion. Rising input costs and the pandemic also played roles.
City-wise trends reveal that out of 1,642 projects comprising approximately 2,58,100 units launched in H2 2017 and 2018, 1,409 projects with 1,83,490 units are complete.
Mumbai Metropolitan Region (MMR) led in new launches with 679 projects (89% complete), while Pune launched 393 projects (89% complete), Bengaluru saw 172 projects (85% complete), and Hyderabad had 110 projects (74% complete). NCR, with 86 projects (74% complete), had larger projects contributing to lower completions.
Chennai, with 119 projects (90% complete), excelled, while Kolkata, with 83 projects (70% complete), saw the lowest completion rate among the top 7 cities.
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