Housing project completions: What worked?
BENGALURU : Delays in completing real estate projects have somewhat declined, latest data shows. In achieving this, the implementation of the Real Estate (Regulation and Development) Act, 2016 or RERA has played a key role. Mint explains: Around 86% of residential projects (1,409 projects) launched between June 2017 and 2018-end, after the implementation of RERA in May 2017, are completed.
Typically, it takes 4-5 years to complete a housing project, with the exception of large townships. The completions were despite the pandemic-led disruption in construction, according to data released by property advisory Anarock. Chennai led with 107 completions out of 119 launched in this period.
Mumbai Metropolitan Region (MMR) saw the most launches at 679 projects, of which 602 are complete. Pune, too, saw 89% project completion. RERA has ensured timely delivery of projects, particularly in states where it has been fully implemented.
There were major delays, with stalled projects, before the Act came into force. RERA brought in discipline and a sense of accountability among developers. They not only have to declare the expected project completion timeline at the start, but are also penalized for delays owing to factors that are not external or beyond their control.
It is not surprising that Kolkata, where RERA was implemented only in 2022, saw only 70% project completion, the lowest among the top 7 cities. In terms of delayed and stalled projects, the National Capital Region was the worst hit. But in recent years, tribunal and court interventions and attempts to take over stalled projects by the likes of NBCC Ltd, have led to a clean-up.
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