Chennai leads in project completion

In a market where execution risks are a prime focal point, the Southern markets – Chennai, Bengaluru, and Hyderabad – have been remarkably resilient. The latest ANAROCK research reveals that out of the total new housing unit launches in top cities between 2013 till Q3 2020, Chennai has the highest share of ready/completed homes at 61 per cent of its total inventory, followed by Bengaluru with 48 pc and Hyderabad at 44 pc.

Chennai saw new launches of over 1.32 lakh units between 2013 and Q3 2020, of which 61 pc is already completed. In stark contrast, NCR saw over 5.54 lakh units of new supply launched in this period, of which just 26 pc units are completed.

Source: ANAROCK Research

Altogether 23 lakh units were launched between 2013 and Q3 2020 across the top seven cities, of which 34 pc (approx. 7.92 lakh units) is completed. Another 19 pc is scheduled to complete within the next 12 months, and another 19 pc between one to two years.

Anuj Puri, Chairman – ANAROCK Property Consultants says, “Predominantly driven by end-users from the IT/ITeS sector, the conservative housing markets of the Southern cities also benefit from the proactive project completion focus of developers active there.”

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Out of all the projects launched and completed between 2013-till date, the average time to complete projects in Chennai, Bengaluru and Hyderabad is between 4.1 – 4.3 years for smaller projects (with 100-500 units each) and between 5.5 – 5.9 years for large projects (>500 units each). This is significantly less than the average completion time in NCR, where it is 6 years and 7.2 years, respectively.

City-wise analysis

Source: ANAROCK Research

Cumulatively, the top cities saw more than 7.92 lakh units (34 pc) completed out of the total of over 23 lakh units launched between 2013 and Q3 2020. The average time taken to complete smaller projects in the top cities is about 5.1 years, and 6.6 years for large projects. Chennai stands head and shoulders over its peers, followed closely by Bengaluru and Hyderabad.

• Chennai saw new launches of more than 1.32 lakh units between 2013 till Q3 2020. Of this, 61 pc or approx. 80,440 units are already completed. The avg. time taken to complete small projects is 4.1 years, and 5.5 years for large ones.
• In Bengaluru, out of the total new supply of nearly 3.83 lakh units during the period, nearly 48 pc or >1.85 lakh units are ready. The avg. completion time is 4.3 years for small projects, and 5.6 years for large ones.
• Hyderabad saw new supply of >1.16 lakh units during the period, of which 44% (approx. 51,710 units) is completed. Avg. completion time is 4.2 years for small projects and 5.9 years for large ones.
• Kolkata saw new supply of >1.41 lakh units, of which 40% or nearly 56,100 units are completed. Avg. time taken is 4.8 years for small projects and 6.4 years for large ones.
• In Pune, out of the total launches of over 3.50 lakh units, nearly 29 pc (1.02 lakh units approx.) have been completed. Avg. time for small and large project completion is 5 years and 6.3 years respectively.
• MMR saw new launches of nearly 6.26 lakh units during the period. Of this, 28 pc (1.73 lakh units approx.) is completed. Avg. completion time is 5.4 years for small projects and 6.5 years for large ones.
• NCR saw new launches of nearly 5.54 lakh units during the period, of which 26 pc (1.45 lakh units approx.) is completed. Avg. completion time is 6 years for small projects and 7.2 years for large ones.