Faster Home Building in India: Big Projects Now Completed Quicker
In a major change for India’s real estate market, the time to finish large residential projects has dropped significantly. According to the Anarock Group, from 2014 to the first half of 2024, the average time to complete projects with 500 or more units in the top seven cities decreased to 4.9 years, down from 6.1 years in the previous decade. This 20% improvement is due to the Real Estate Regulatory Authority (RERA), better construction technology, and the rise of established developers.
Key Factors
Anuj Puri, Chairman of ANAROCK Group, explained that strict rules on project delays and the financial health of developers have played a big role. In regions like NCR and MMR, developers often bought land outright, affecting their finances and delivery times. In contrast, southern cities usually have joint developments, where landowners get a share of the developed units.
Smaller Projects Also Benefit
Smaller residential projects of 100 to 500 units also saw a decrease in completion time, now averaging 4.0 years compared to 4.9 years in the previous decade. This has helped reduce unsold inventory by 13% from the first half of 2019 to the same period in 2024.
Challenges and Optimism
Despite challenges like extreme weather in NCR and regulatory constraints, the overall outlook is positive. Ongoing innovations promise even more efficiency in the future.
