10,000 residential units worth Rs 6,500 crore running behind schedule: Report
CHENNAI : A total of 10,000 residential units valued at Rs 6,500 crore launched before or during 2013 in the city are running behind schedule, according to a report by Anarock Property Consultants.
The report states that nearly 5.76 lakh housing units worth Rs 4,64,300 crore are delayed in seven major cities of the country despite implementation of the new real estate law.The report states the Real Estate Regulatory Authority (RERA) policies have been flouted across many states where several projects that have been going on for years and, thanks to the dilutions, do not come under its ambit.
However, the Confederation of Real Estate Developers’ Association of India (CREDAI) Tamil Nadu, Ajith Chordia questioned the report. He said that at the most there will be less than 100 projects in the city which may have failed to meet the deadline. He said the some of the projects could be those which have not been registered with the Tamil Nadu Real Estate Regulatory Authority (TNRERA) or may been the abandoned projects. However, he rejected such a huge number of project delays.
Interestingly, the report has questioned RERA. “RERA may be effective in freeing only a limited amount of the stuck inventory. In short, despite RERA, buyers are still at the mercy of the developers’ actual intent to deliver in many cases,” the report added.The report states that prolonged liquidity crunch, delayed environmental clearances, land disputes and the non-RERA compliance are some of the factors contributing to delayed possession of properties across the country.
Another major hurdle in timely delivery of projects is the shortage of skilled manpower to execute projects and streamline organisational processes. It is estimated that real estate and construction will require over 66 million workforce by 2022 across different skill-sets while the shortage for the same is pegged at nearly 2-3 million during the same period. The scarcity of skilled labour invariably leads to project delays, the report stated. The report states that most profound impact of the housing delay is obviously on buyers who have already invested in the said projects, affecting their overall financial planning, increasing the burden of rent along with EMIs, etc.