NCR realty projects have longest gestation period, says reportUpdated: Feb 26, 2020 23:44 IST
The realty projects in the National Capital Region (NCR) have the longest gestation period in the country at seven years, stated a report released by a private real estate consultant on Wednesday.
Individually, residential projects launched and completed between 2010 to 2019 in Delhi-NCR took the longest average time to complete for both small and large size projects – six years and 7.2 years, respectively.
The report released by Anarock says southern states had lesser gestation period as compared to the NCR.
Land litigation issues, lack of professionalism and technical expertise in project delivery, and periodic construction ban to curb pollution were identified as major reasons for delay in NCR projects.
It also stated that for most projects in the NCR, land had been purchased by developers outright, which compromised their overall financial health and delivery capability.
In comparison, the projects in southern cities are mostly undertaken as joint development by developers and land owners, who get a certain share of the property units, the report said.
As per localised city-based data for projects launched between 2010 and 2019, the longest average time to complete small and large size projects was 6.2 years and 7.5 years.
In Gurugram, it takes an average six years to complete a small project and 7.3 years to finish a large project, in Noida the schedule was 5.7 years and 7.2 years respectively, while in Ghaziabad the wait was 5.6 years for a small project and 7.1 years for a large project.
Interestingly, the report said that Delhi had the minimum wait of five years for a small project.
To calculate the average time for project completions across the top cities, all projects launched and completed between 2010-2019 were analysed. These were further segregated into small-size with 100-500 units/project and large-size having >500 units.
The southern cities were markedly ahead of their northern, western and eastern counterparts in project completions.
For all large projects launched and completed over the last decade, the average completion time was least in Bangalore and Hyderabad with around 5.5 years each.
Chennai came close behind with an average completion time of 5.6 years, the report said.
Anuj Puri, chairman, Anarock Property Consultant, said, “The difference of 1.5 years of average completion time between NCR and the southern cities may not seem significant at a macro level, but this period must be measured in the real-time strain it adds on consumer patience and optimism.”