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The average time to complete large residential projects in India's top seven cities has significantly decreased, according to recent data from Anarock Group. The completion time for residential projects with 500+ units dropped to 4.9 years in the first half of 2024 (H1 2024), compared to 6.1 years in the 2010-2019 period. This 20 per cent reduction is attributed to the combined effects of the Real Estate (Regulation and Development) Act (RERA), advancements in construction technology, and the increasing market share of large and listed developers.
Anuj Puri, Chairman of Anarock Group, stated, "Latest Anarock data reveals that the average time to complete large residential projects of 500+ units in top 7 cities clocked in at 4.9 years from 2014-H1 2024, from 6.1 years in the preceding decade. Large and listed players account for nearly 34 per cent of the market today. The stringent rules imposed on project delays by the regulatory authorities have also been a key factor in reducing the completion time.”
Chennai saw the highest reduction in completion time, dropping 36 per cent from 5.6 years in 2019 to 3.6 years in H1 2024. In Bengaluru and Hyderabad, completion times decreased to 4.8 and 4.2 years, respectively. The National Capital Region (NCR) observed a significant reduction of 25 per cent, with completion times falling from 7.2 years in 2019 to 5.4 years in H1 2024. The Mumbai Metropolitan Region (MMR) saw the average completion time reduce to 5.2 years in H1 2024 from 6.5 years in 2019, a 20 per cent decrease. In Kolkata, homebuyers faced the longest wait, with an average of 5.7 years, only a 10 per cent reduction from 6.3 years in 2019. For smaller projects (100-500 units), the average wait time for completion in the top seven cities reduced to 4.0 years in H1 2024 from 4.9 years in 2019.
There was a 13 per cent reduction in unsold inventory between the end of H1 2019 and H1 2024.
In terms of completion trends for small and large projects between 2014 and H1 2024, Kolkata had the longest duration for large projects, averaging 5.7 years. In the Mumbai Metropolitan Region (MMR), small projects took an average of 4.7 years, while large projects took 5.2 years. In Pune, small projects averaged 4.3 years, with large projects taking 5.4 years. Homebuyers in the National Capital Region (NCR) waited 4.7 years for small projects and 5.4 years for large ones. In Chennai and Hyderabad, small projects took 3 and 3.1 years, respectively, while large projects took 3.6 and 4.2 years, respectively. In Bengaluru, small projects took 3.5 years, and large projects took 4.8 years.
As larger projects gain momentum and new construction technologies are implemented, the average construction time is expected to decrease further. Financially sound developers, supported by consistent sales volumes, are ensuring continuity in project execution and timely delivery.
