NCR Drives Record Home Completions

The pace of home completions that gained momentum last year, is set to accelerate further this year, with NCR leading the pack across seven top cities .

While 2022 set a new benchmark of residential sales, 2023 is likely to be a record year for project completions. RERA has laid down strict guidelines for project completions, mandating that that developers must complete residential projects within the timeline specified in the agreement with their customers. Project delays were historically the bane of the Indian housing sector, putting homebuyers to enormous inconveniences and often considerable, unwarranted financial strain.

According to   Santhosh Kumar, Vice Chairman Anarock Group, around 5.6 lakh homes are likely to be delivered across the top 7 cities in 2023. This is an increase of 39% over the previous year, and a major milestone as the Indian residential real estate segment crosses the 0.5 million deliveries mark for the year. From a humble volume of 2 lakh units’ completion in 2017, annual completions will rise 2.8X for 2023.”

NCR is all set to lead the pack with nearly 1.70 lakh units to be completed in 2023, accounting for an almost 30% share of the year’s delivery pipeline. This amounts to 97% hike over 2022. MMR follows with an expected share of 24%.   Though Hyderabad’s project completion share is just 4% of the top 7 cities, yet it will notch a massive 104% increase over 2022.

Source: ANAROCK Research

Looking Ahead 

Despite global economic and geopolitical disruptions, developers are likely to achieve targeted  project  completions due to several factors working in their favour.

• Better cash flows: This positive development enables smoother construction: Increased sales volume, indicating an uptick in housing demand, has led to better cashflows which allow developers to focus on completing their projects.
• Managing input costs: Input costs are rising incessantly, and developers already operate on very slim profit margins. Project delays result in even higher input costs. As such developers are focusing on managing input costs.
• AIFs ading project completions: Several alternate investment funds which are providing finance to cash-positive stuck projects are also adding to the high volume of completions. Since its inception in 2019, the SWAMIH Fund provided final approval to 130 projects cumulatively valued at INR 12,000 crores and enabling the completion of 20,557 housing units.
• Construction technology boosting project completions the transition from conventional construction methodologies and processes to cost-effective and efficient technologies by many developers has resulted in faster project completions. Approximately 66% of Indian construction companies are now prioritizing digital transformation.

All these factors will help real estate developers to fight all odds to firmly charter the path of speedy project completions.