Much to the discomfort of homebuyers, as many as 5.76 lakh housing units worth Rs 4,64,300 crore are delayed in seven major cities/regions — Mumbai, NCR, Chennai, Bangalore, Hyderabad, Kolkata and Pune — of India despite the implementation of Real Estate Regulatory Authority (RERA) that came into effect May last year.
The data shows as many as 4,10,000 units, worth Rs 3.6 lakh crore, in Mumbai Metropolitan Region (MMR) and National Capital Region (NCR) are facing with some issues or the others, resulting in delay in possession. In MMR, 2,10,000 units worth Rs 2,34,000 crore are stuck, whereas 2,00,000 units worth Rs 1,26,000 crore are pending in NCR. The MMR and the NCR account for 71 per cent in volume terms and 78 per cent in value terms. The maximum delay has been witnessed in MMR and NCR at 65 months each.
“In Bengaluru, the delivery of 39,000 flats worth Rs 28,000 crore is delayed, while 10,000 units worth Rs 6,500 crore are yet to be handed over to buyers. Kolkata has 13,000 units worth Rs 7,300 crore and Pune has 95,000 units worth Rs 57,000 crore that are stuck. As per report, Hyderabad has seen the least project delays during the period, with around 8,900 units worth Rs 5,500 crore delayed since 2013 or before. In Chennai, as many as 10,000 residential housing units worth Rs 6,500 crore are yet to be handed over to buyers,” the data said.
According to the report, the residential real estate launched in or before 2013, that is stuck in various stages of (non) completion, is collectively worth Rs 4,64,300 crore for a total of 5,75,900 units.
As many as 86 group housing projects in Noida have been delayed by three to four years due to a dip in the realty sector, affecting around one lakh buyers who had invested in projects that were to be delivered in 2012. In Greater Noida, around 3.5 lakh homebuyers are still yet to get possession of flats that were to be delivered from 2012.
“The residential real estate launched in or before 2013, that is stuck in various stages of (non) completion, is collectively worth Rs 4,64,300 crore for a total of 5,75,900 units. These units have been stuck since 2013 or before. Incessant project delays, dodgy activities of some developers and land litigation issues have plagued the Indian real estate sector over the last several decades, not helping its domestic and international image,” chairman of the noted property consultant ANAROCK, Anuj Puri, said.
“However, despite the implementation of game-changing policies like RERA and GST, the issue of stalled or delayed projects that has primarily been at the core of buyers’ discontent is yet to be addressed satisfactorily,” rued Puri whose ANAROCK prepared the report.
Another report by a A PropEquity said as many as 1,687 projects, comprising 4,65,555 units with a saleable area of nearly 600 million sq ft, are significantly behind delivery schedule.
According to officials of the Housing and Urban Affairs Ministry, if the project is under the ambit of the RERA, the association can register a case against the builder with the State RERA complaint tribunal and seek hefty penalties. “The regulator will have the power to adjudicate on disputes between the developer and the buyer, with the power to impose fines,” officials said.
In a related development, the NITI Aayog is also seeking list of projects which can be easily revived depending on bank funding. The National Real Estate Development Council (Naredco) and Confederation of Real Estate Developers Association of India (Credai) have been asked to come up with a list of housing projects that are languishing or stuck for want of liquidity, due to which the home buyers are not getting their apartments despite paying the price.
The Housing and Urban Affairs Ministry, along with the NITI Aayog, will consult with banks over infusion of funds and then decide on the duration for completion of these projects.