Quantification of benefits to the consumers and industry
New launches across 27 cities
Source: Liases Foras
||No of Projects
||Value of Units Launched
MMR (Mumbai Metropolitan Region), NCR (national Capital Region), Bangalore, Chennai, Pune, Ahmedabad, Hyderabad, Surat, Kolkata, Chandigarh, Vadodara, Jaipur, Indore, Lucknow, Bhopal, Nagpur, Coimbatore, Nashik, Goa, Cochin, Mangalore, Thiruvananthapuram, Palghar, Boisar, Kanpur, Bhubaneswar, Rajkot, Patna
Incomplete projects have a huge negative bearing on India’s GDP. Delay in completion is a menace that has plagued the sector since long. For our analysis we have considered all the total supply across all the 25 cities under our coverage universe. About 34% of this supply is more than 12 months delayed. This estimated delay of residential projects amounts to 1.32% of GDP (2014-15) at current prices.
Project delays are the biggest menace for the Indian real estate and one of the key reasons for sky-high prices. The Real Estate Regulatory Bill, aimed at reducing delays and ensuring faster completion through Transparency, Accountability and Efficiency, is the requirement of the hour. Together these elements will bring about Efficiency by discarding any kind of deception in prices. Firstly, sales will happen on carpet area, which is a practice followed in the developed countries such as Singapore, UK etc. Secondly, the escrow account will help in curbing diversion and misuse of funds, thus ruling out speculative practices.