The approximate value of residential projects running behind schedule (launched before or during 2013) is Rs 4.64 lakh crore, says a study by Anarock Property Consultants. Compare this to the Defence budget allocation for this year, which reportedly stands at Rs 2.95 lakh crore. The total number of units running behind schedule is 5,75,900.
According to the study, the major causes of the delayed possession are prolonged liquidity crunch, delayed environmental clearances, land disputes and the non-RERA compliance.
"Realizing the significance of real estate in the country's economy," says Anuj Puri, chairman of Anarock Property Consultants, "the government has been taking active measures over the last few years to bring in greater transparency and efficiency. However, despite implementation of game-changing policies such as RERA or GST, the issue of stalled or delayed projects, which has primarily been at the core of buyers' discontent, is yet to be addressed satisfactorily."
As per the firm's data, Mumbai Metropolitan Region (MMR) and National Capital Region (NCR) are the two major regions where maximum units with significantly high values have been delayed since their launch in 2013 or before. As many as 4,10,000 units across these two regions, whose collective approximate value is a whopping Rs 3,60,000 crore, grapple with deployment issue.
According to the research, the number of units running behind schedule in MMR stands at 2,10,000, estimating to Rs 2,34,000 crore; NCR's delayed units stand at 2,00,000, clogging around Rs 1,26,000 crore. In Bengaluru, the number of units running behind schedule is 39,000 with a total value of Rs 28,000 crore.
In Pune, 95,000 units are behind schedule at a value of Rs 57,000 crore – the third highest in the country. Hyderabad is in the green with the least number of delayed units — only 8,900 at a value of Rs 5,500.
Developers say that when projects get stuck everyone associated with them gets hurt, even if the violations are by one single party.
"It's like a disease that spreads across all sectors," says Pradeep Jain, Sr legal advisor of Omkar Realtors & Developers, adding, "and that's why defaulters ought to be penalised in an innovative manner with preventive instead punitive measures."
Work In Progress?
The maximum number of delayed units are in MMR and NCR. A total of 4,10,000 units, worth approximately Rs 3,60,000 crore, are held up. MMR has 2,10,000 units worth Rs 2,34,000 crore
