by THO
While the average completion time for large real estate projects across the country was down by 20% to 4.9 years in H12024 from 6.1 years in 2019, it was the southern cities that were markedly ahead of their northern, western, and eastern counterparts.
For all large projects launched and completed between 2014 and H1 2024, the average completion time was lowest in Chennai with 3.6 years, while Hyderabad and Bengaluru clocked in at 4.2 and 4.8 years respectively, an analysis by Anarock has said.
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This is because most projects in the main southern cities are joint developments where landowners usually get a certain share of the developed units. For most large projects in NCR and MMR, developers had purchased land outright, thereby compromising their overall financial health and delivery capability, the analysis showed.
It is noteworthy that at 36%, Chennai has the highest reduction of construction time among the top 7 cities, despite incessant rains during the monsoon season causing major challenges, it showed.
The reduction in project completion timelines can be seen as a combined effect of RERA, modernisation of construction technology, and the increasing market share of large and listed developers, the last decade (2014-H1 2024) has seen homebuyers’ wait for possession in large under-construction projects in the top 7 cities reduce to 4.9 years, from 6.1 years in the 2010-2019 period.
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As larger projects gain momentum across the cities and new construction technology is implemented, construction time will reduce further. Continuity of execution across major projects is becoming a major factor with financially sound developers whose sales volumes have enabled continued cash flows, the analysis showed.
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“The latest ANAROCK data reveals that the average time to complete large residential projects of 500+ units in top 7 cities clocked in at 4.9 years from 2014-H1 2024, from 6.1 years in the preceding decade. Large and listed players account for nearly 34% of the market today. The stringent rules imposed on project delays by the regulatory authorities have also been a key factor in reducing the completion time,” said Anuj Puri, chairman – ANAROCK Group.
“In NCR, extreme weather conditions and the statutory restrictions imposed on construction when the pollution levels rise also affect construction timelines in the region. Most developers have gradually reduced their leverage and with stronger financial conditions, are able to focus on execution,” said Puri.
All projects launched and completed between 2010-2019 and 2014-H1 2024 in the top 7 cities were analyzed in the study, and were further segregated into developments with less than 500 units and larger ones with over 500 units.
Small and large real estate projects: Completion timelines (2014-H1 2024)
The average time taken to complete smaller projects of less than 500 units in the top 7 cities was 4 years, and 4.9 years for large projects of more than 500 units each.
In Kolkata, large projects launched and completed between 2014 to H1 2024 took the longest average time to complete, at 5.7 years. In Kolkata, homebuyers’ wait for large projects longest at 5.7 years with a just 10% reduction from 6.3 years in 2019.
In MMR, it took an average of 4.7 years to complete small projects, and around 5.2 years for large projects. In MMR, average completion time reduced to 5.2 years in H1 2024 from 6.5 years in 2019 – a reduction of 20%
In Pune, the average project completion time was 4.3 years for small projects, and 5.4 years for large ones, the analysis showed.
In NCR, homebuyers waited an average of 4.7 years for small projects and 5.4 years for large ones. NCR saw a significant 25% reduction – from 7.2 years in 2019 to 5.4 years in H1 2024, as per the analysis.
In Chennai and Hyderabad, the average completion time for small projects was 3 years and 3.1 years respectively, and 3.6 and 4.2 years for large projects, respectively. In Bengaluru, it was 3.5 years for small projects and 4.8 years for large ones, the analysis showed.
