Builders of RERA-registered projects delay delivery timelines in Maharashtra: Study

The report stated that the timelines for 57% of the registered units that are under construction have been revised by more than a year. Among them, for 24 per cent of the 1, 07,875 registered units, the completion deadline has been pushed to between a year and 18 months while 19% will be delayed by between 2-4 years and the remaining 10% would not get completed before four years.

The analysis pointed out that only one-third of the projects listed with MahaRERA are set to be completed on time. Chief Economist and National Director of Research at Knight Frank, Dr Samantak Das attributed the reason to the presence of RERA as a regulator which now commands and controls real estate developers.

“Builders know that now that they have registered, there will be penal action against them if they fail to complete the project within the time period they mentioned while registering. They are thus taking a buffer zone by increasing completion timelines,” said Das.

Das added that a significant number of residential units still unsold should have been completed as per the initial commitment of delivery. “There was a lack of seriousness in the completion time commitments made to the buyers before RERA came to effect. The MahaRERA database or similar information networks created by other states would bring the missing information parity between buyers and developers which will play a crucial role in the financial planning of home buyers setting a new paradigm in the real estate sector,” he said.

The analysis covered projects registered until August 16 in central and western suburbs including Andheri and Borivali Talukas which stretched from Bandra in the south to Dahisar in the north, and the stretch between Kurla, Tilak Nagar and Mulund in the central suburbs. The study found that at least 48% of the registered units are still unsold.