Around 45% of real estate projects in the National Capital Region, Mumbai Metropolitan Region and the Bangalore Metropolitan Region have been delayed, according to a survey by real estate reserach firm PropEquity.
The report said developers were facing a shortage in funding, increased borrowing costs, falling global macro-economic trends and dwindling demand in metros, delaying execution.
“NCR has contributed to lot of that delay... the number of projects here very large compared to MMR and BMR,” Samir Jasuja, chief executive officer at PropEquity said. “Another reason is that post-subprime crisis, several projects were announced, but the developers did not have the execution bandwidth. In several cases they used funds raised from one project to acquire more land.”
Only 23% projects were completed in NCR by January 2012. In MMR 61% were completed, and in BMR 66%. In the luxury segment, 72% projects in NCR, 36% in MMR and 45% in BMR were lagging.