Chennai has experienced a substantial reduction in the waiting time for homebuyers to take possession of their homes in large construction projects. According to a recent report by Anarock Consultants, the waiting period for projects with more than 500 units has decreased by nearly 36% compared to 2019. In smaller projects, the waiting time has reduced by 29%. This significant improvement is largely attributed to stringent enforcement by the Tamil Nadu Real Estate Regulatory Authority (TN RERA) and advancements in construction technology.
The report highlights that Chennai saw the highest reduction in waiting time among major cities, dropping from 5.6 years in 2019 to 3.6 years in the first half of 2024. This trend is mirrored across other major Indian cities, including NCR, Mumbai, Hyderabad, Kolkata, and Bengaluru, where the average waiting time for large under-construction projects has decreased from 6.1 years during the 2010-2019 period to 4.9 years. Hyderabad and Bengaluru recorded average completion times of 4.2 and 4.8 years, respectively, for large projects launched and completed between 2014 and the first half of 2024. Kolkata reported the longest average completion time of 5.7 years, followed by NCR and Pune at 5.4 years, and the Mumbai Metropolitan Region (MMR) at 5.2 years.
In the case of smaller projects, Chennai led with an average completion time of 3 years, followed closely by Hyderabad at 3.1 years and Bengaluru at 3.5 years. MMR and NCR had the longest waiting times for smaller projects, at 4.7 years, followed by Kolkata at 4.4 years and Pune at 4.3 years. Nevertheless, all cities experienced an 8% to 29% reduction in waiting times. An official from Anarock Chennai attributed the faster completion times in southern cities to the prevalent practice of joint development projects, where landowners receive a share of the developed units. This contrasts with the trend in Delhi-NCR and MMR, where developers typically purchase land outright, resulting in longer project durations.
“The funds in southern cities are primarily allocated to construction rather than land acquisition,” said the Anarock official. “Additionally, developers in the South tend to be more disciplined regarding project deadlines.” The strict regulations enforced by TN RERA have played a crucial role in reducing completion times. An official from the Anarock Group noted that the regulatory authority’s stringent rules on project delays have significantly contributed to timely project completions. Modernisation of construction technology has also been a key factor. An official from the Confederation of Real Estate Developers’ Associations of India (Credai) explained that pre-fabrication methods have accelerated construction processes. “The sales velocity is faster, resulting in better cash flow. Financial institutions are more cooperative in funding the final phases of construction. However, the most significant factor is TN RERA, which ensures that projects are completed on time,” he added.
