Boosting timely deliveries in housing projects after the establishment of RERA, at least 86 per cent of residential projects launched in the top-7 cities in India during the second half of 2017 and in full 2018 are now completed, according to a report by real estate consultancy firm Anarock. The Real Estate (Regulation and Development) Act, 2016, or RERA, was passed in 2016 and became fully operational on May 1, 2017.
One of the main objectives of the Real Estate Regulatory Act (RERA) was safeguarding homebuyers from the issue of delayed and stalled housing projects.
“Out of a total of 1,642 RERA-registered residential projects launched in the top-7 cities in these 1.5 years, at least 1,409 are completed despite major headwinds like COVID-19 and the supply chain disruptions of the war in Europe,” Anarock said in the report.
Chennai saw the highest number of project completions (90 per cent) among the top-7 cities. Out of 119 projects launched in the city between H2 2017 and the whole of 2018, over 107 are complete as on date, it said.
According to Anarock, only H2 2017 and 2018 projects have been considered because on average, it does not take more than 5 years to complete most housing projects, with the exception of large townships.
Anuj Puri, chairman of ANAROCK Group, said, “When it comes to ensuring timely delivery of residential real estate projects, RERA has delivered resoundingly wherever it has been fully deployed. The overall completion rate of 86 per cent across the top-7 cities following the RERA implementation is remarkable, especially considering the market circumstances prior to its deployment.”
These project completions took place during a period when construction activity was severely impacted by the pandemic-induced lockdowns. From H2 2017 onward, a ‘delivery at all cost’ approach has taken firm root, predictably spearheaded by the country’s leading developers, it said.
“More than 4.02 lakh homes were completed in 2022 across the top 7 cities – the highest yearly completions since 2017,” the report said.
“While Chennai recorded the highest number of project completions at 90 per cent, Kolkata saw the least at 70 per cent,” said Puri. “Currently, Chennai has the least available stock across the top-7 cities with about 28,300 units available for sale. Kolkata has, in all likelihood, trailed behind because RERA was not implemented in the state until late 2022. Moreover, when compared to the other major cities, real estate activity in Kolkata has remained relatively subdued.”
Commenting on this, Pradeep Aggarwal, founder & chairman of Signature Global (India) Ltd, said, “The introduction of RERA has reinvigorated prospective homebuyers with unwavering confidence, assuring them that their investments are protected, and their dream homes will be completed on schedule. State governments have played a pivotal role in enforcing this law effectively, yet there’s an opportunity for further enhancements to empower homebuyers to invest their savings with absolute certainty.”
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