Buyers may face a delay upto two-year in delivery of flats in Delhi-NCR

Delivery Delays Plague Delhi-NCR Apartment Projects

Real estate associations Naredco and Credai predict that the completion of apartments under construction in Delhi-NCR could be delayed by up to two years. This predicament stems primarily from the two waves of the COVID-19 pandemic and the resulting disruptions to financial stability and the employment landscape. These delays exacerbate the waiting period for already delayed apartments, of which, according to a survey by Anarock, there are over 3 lakh across major Delhi-NCR cities. An apartment is deemed delayed if its launch date precedes 2014, while those initiated after 2014 are classified as "ongoing." The completion timelines for these ongoing projects will also be adversely affected.

The anticipated two-year delay, attributed to the two waves of the pandemic, is impacting the more than 3 lakh apartments currently under various stages of development in the NCR region. Both Credai and Naredco suggest that prospective homebuyers and regulatory authorities should brace themselves for these significant delays. Anarock's analysis further unveils that approximately half of these delayed units are concentrated in Greater Noida.

Relief Package: A Potential Catalyst for Construction

Real estate developers cite labor shortages and supply chain disruptions experienced during the pandemic as the primary causes for delays. The lack of consistent cash flow has presented a significant impediment to construction progress. R.K. Arora, CMD of Supertech and President of Naredco, UP, stated, “Since March 2020, project implementation has developed very slowly due to labor shortages, raw material shortages and related problems. Delivery time is delayed by approximately two years.”

Pankaj Bajaj, president of Credai (Delhi-NCR), echoed these concerns, positing that real estate is among the most severely impacted sectors, with most projects likely to experience roughly two years of delays. As real estate grapples with these challenges, stakeholders are looking for governmental relief measures including announcements through a dedicated package to invigorate construction activity and provision of last-mile funding via banking institutions.

Extended Registration Validity: A Temporary Respite?

Prashant Thakur, head of research at Anarock, highlights the findings of Anarock's survey, which found about 3.29 lakh apartments launched in the NCR region in 2014 or before are currently stalled or delayed. The pandemic is identified among top reasons for these delays, affecting projects that were initially slated for delivery by June 2021. The survey indicated that 50% of these units are in Greater Noida, 16 % in Noida, 12% in Gurgaon, and 10% in Ghaziabad, with the remaining 12% distributed across Delhi, Faridabad, and Bhiwadi.

Balvinder Kumar, member of UP-RERA, points towards a implemented solution. Last year, amidst the emerging pandemic, the organization granted builders a six-month relaxation from registration deadlines. While existing regulations stipulate a one-year validity for registrations from their expiry date, UP-RERA opted to add another six-month extension for builders’ registrations. This temporary relief stands as an ongoing subject within the wider regulatory framework surrounding real estate developments in the region.