A whopping unbelievable amount of money is being clogged in the delayed real estate industry in India. As per a recent report, the approximate value of residential projects running behind schedule (launched before or during 2013) is Rs 4.64 lakh crore.
The figure’s massiveness can be ascertained by the fact that nearly half of the amount is the fund that usually gets allocated to the country’s Defence Budget. In all, there are 5,75,900 delayed real estate projects in India, which are running behind schedule, due to some or the other reason, as per a recent study done by Anarock Property Consultants, DNA reported.
As per the data, MMR (Mumbai Metropolitan Region) is leading this list with close to 2,10,000 units worth Rs 2,34,000 crore with an uncertain future. Closer home, Delhi-NCR presents an equally grim picture 2,00,000, delayed units, clogging around Rs 1,26,000 crore.
MMR and NCR are followed by Pune and Bengaluru. While in Bengaluru, the number of units running behind schedule is 39,000 with a total value of Rs 28,000 crore, Pune presents a worse picture of 95,000 delayed units at a value of Rs 57,000 crore.
It is only Hyderabad among top Indian cities that falls in the green zone. The city has only 8900 delayed units.
This aspect of the Indian real estate industry is a no hidden secret. The major causes of the delayed possession that have emerged in the study are prolonged liquidity crunches, delayed environmental clearances, land disputes, and the non-RERA compliance.
Despite the implementation of RERA, the issue of stalled and cash-starved projects is still a gigantic one. The problem has seeped well into the mindset of Indian home buyers as well, who are now staying away from investing in under-construction projects, leading to a vicious circle of the cash crunch. The issue is yet to be addressed effectively.
“It’s like a disease that spreads across all sectors,” Pradeep Jain, Sr legal advisor of Omkar Realtors & Developers, told DNA, “and that’s why defaulters ought to be penalized in an innovative manner with preventive instead of punitive measures.”