Homebuyers Will Face Delays in Delivery of Apartments This Year

Since, the past decade, a trend of non-delivery of properties has plagued the real estate industry. This is to be continued in all likelihood in the present year spelling malady in the real estate industry in India.

Out of the total industry in the top 7 cities, a menial count of 180,716 flats was completed by the month of July. Housing Units that are to be completed in the year 2016 are 6,74,834 of which statewide spread are Thane 1,04788, Bengaluru 1,02115, Pune 88,627, Greater Noida 67,763, Chennai 51,993, Noida 47,562, Grugaon 41,466 and Mumbai 41,263. Homes which are likely to be completed by end of the year are only 50% with an average delay of one to three years. The rest of the half apartments are likely to be completed in the coming year. 

Sixty percent of these projects were launched within the year 2010 and 2013 with an average delay of 1 to three years at present which is going to increase and comes as a bad news for the homebuyers. As per plan, the real estate industry is going to complete 621,297 apartments by the year 2017 but the number will inflate further due to the spillover from the current year. 

This situation reflects the market crunch for liquidity and also a slowdown in demands. Out of the 674,834 apartments that are to be completed in 2016, Thane has registered a maximum number of homes which are finished at 104,788 homes, following which is Bangalore at 102,115 and Pune is at 88,627. It is expected that Greater Noida is to witness a maximum number of completions in the year 2017 which is 90,779 units and Bengaluru at 85,716 units. Previously in the year 2015 approx. 380,808 apartments were completed while in 2014 figures were 268,376 and in 2013 it was 214811 further in 2012 it was 202,741. 

Unfulfilled demands and dissatisfied customers and increasing prices and lack of funds in real estate are causing this situation, according to an industry expert. 

However, those who are looking to sell their apartments, this comes in as a blessing in disguise. Because if all of these apartments were to have completed in the current year collectively, prices could have fallen even further according to another industry expert.

Facing a tight liquidity crunch from the slowdown builders are pushed to seek funds from nonbanking financial institutions to finance their previous loan and complete their incomplete projects. With all the uncertainty home buyers have become increasingly apprehensive about buying any property which is not complete. 

Summary

Homebuyers are increasingly frustrated with delays in possession of their apartments. Experts are seeking resolution to its roots and a trend has been identified in the last decade.