Six out of ten under-construction projects in Mumbai have revised their delivery targets by more than a year after Real Estate Regulation and Development (RERA) Act, 2016 into force, said a new report.
About 57 per cent of projects registered with RERA authority in Maharashtra have extended the delivery timelines, said a survey by property consultant Knight Frank. The report covered residential units registered with the Maharashtra RERA regulator or the MahaRERA in the Mumbai suburbs until August 16, 2017.
For nearly one-fourth (24 per cent) of the 1, 07,875 registered units the completion deadline was pushed by 12 to 18 months. The report further found that 19 per cent under-construction homes were delayed by 24 to 48 months and 10 per cent of these properties would not get completed before four years.
Just about one-third of the units listed with the MahaRERA are set to be completed on time, the report added.
Samantak Das, Chief Economist and National Director-Research, Knight Frank India, said: "Our analysis of the database shows that a significant number of residential units lie unsold in projects that should have been completed as per the initial commitment of delivery. Another crucial trend that comes to light is the lack of seriousness in meeting time commitments agreed upon by the buyers before RERA came to effect.
Going forward, the MahaRERA database or similar information networks created by other states would bring the missing information parity between buyers and developers. Availability of such detailed information would also play a crucial role in the financial planning of home buyers setting a new paradigm in the real estate sector."
Projects registered until August 16 in key central and western suburbs were covered in the analysis. This included the Andheri and Borivali Talukas that stretch from Bandra in the south and extend up to Dahisar in the north. In the central suburbs, the study covered the Kurla Taluka, spanning between Tilak Nagar and Mulund.
The study also found that at least 48 per cent of the registered units stood unsold. Nearly a third of the units in projects that should have been complete as per their initial proposed date of completion, still lie unsold.
The unsold inventory level for units is scheduled to be delivered by July 2018, as per the initial commitment of completion that stands at a staggering 55 per cent.