Delays plague projects, despite RERA

Delays plague projects, despite RERA

News:

1. The bulk of property locked in delayed projects across India, causing distress among homebuyers.

Important facts:

2. The bulk of this property is located in the National Capital Region(NCR) and the Mumbai Metropolitan Region(MMR).

3. As per findings by PropEquity, a real estate analytics company, most units in housing projects across India are running ‘significantly behind their delivery deadlines’ with construction delays.

4. The National Capital Region accounts for more than 70% of projects that have failed to meet completion deadlines.

5. The projects are on hold due to the following reasons :

• Financial constraints
• Execution challenges
• Surplus supply due to over-ambitious launches by developers.
• Environmental clearance and slowing sales
• Funding is another issue.
• RERA, a law brought in to enforce strict norms on developers, has not helped solve the issue as it had allowed developers to offer new completion dates without facing financial penalties.
• Under RERA, the developer has given a new completion deadline.
• Under RERA, one has to complete the project in time.
• RERA has given an opportunity to developers to be transparent and deliver as per new deadline.
• The forest land issue had stalled many projects in Mumbai and Thane.

6. Developers are now looking for JV partners who can bring capital to complete the struck projects.

7. One solution before REERA is to enforce original completion dates which will force developers to expedite these joint ventures.