The real estate industry is being curiously and stoically silent over how many under-construction homes could miss their completion deadlines this year. Several developers are not making projections for 2021 either.
CNBC-TV18.com reached out to eleven A-grade developers across property markets like NCR, Mumbai, Bengaluru and Chennai with three questions:
i) How many of your residential units scheduled for completion in 2020, will not meet their deadline?
ii) How many of your residential units scheduled for completion in 2021, will not meet their deadline?
iii) How much of a factor has the labour shortage played in the delay?
These developers were asked to respond in the context of the report by property consultant Anarock, that said that nearly 4.66 lakh under-construction homes scheduled to be completed this year could be delayed, while 4.12 lakh homes scheduled for delivery in 2021 may not meet their deadlines either. A bulk of this inventory, Anarock said, was in NCR (2.40 lakh homes), the Mumbai Metropolitan Region (2.10 lakh) and Bengaluru (1.51 lakh).
The questions were sent across to Lodha Group, Nahar Group, Hiranandani Realty, S Raheja Realty, Puravankara, Sobha Ltd, Prestige Group, House of Hiranandani, Casagrand, DLF and Signature Global Group. None of the developers could commit to a specific timeline for completion, state how many of their projects could miss the mark, or predict whether project timelines next year would improve.
While Lodha, Nahar, Puravankara and Casagrand responded to CNBC-TV18’s queries stating that they would not be in a position to comment, S Raheja Realty’s publicist said that the management is caught up with an upcoming project launch and wouldn’t be in a position to provide answers to the queries.
Response from developers like DLF, Sobha and Prestige Group was awaited, at the time of publishing the article.
Don’t expect major delays in 2021: Hiranandani
While Hiranandani Realty said that accurate data on completion timelines are hard to come by, the company does not expect too many delays in 2021.
“To look at completion deadlines of 2021 is a long way ahead, since the industry is focusing on a recalibrated start and getting back to normal speed of working, and trying to make up for the lost time,” said ASSOCHAM President and CMD of the Hiranandani Group, Niranjan Hiranandani, adding, “We should not have major delays in 2021, subject to things working out and solutions to present day challenges being successfully met.”
Could technology and better planning condense timelines?
Gurgaon-based Signature Global Group refused to divulge a timeline for its project completion. However, the company’s founder and managing director Pradeep Aggarwal said his company was “trying to complete” affordable housing units ahead of schedule.
“Technology like Aluminum Form Work will come to our rescue as it will help reduce the time of construction since walls are made of reinforced cement concrete (RCC) instead of bricks,” said Aggarwal. “This technology helps in fast-paced construction which is why we have been able to complete projects before time. We have always delivered before time and will trying to do so again with the use of technology in the current situation.”
The Surendra Hiranandani-run House of Hiranandani, with projects in Bengaluru, Hyderabad and Chennai, has not committed to a completion timeline either, but said that the company’s buffer timeline could offset delays. “Our planning has been of immense help to reduce the timeline pressure due to lockdown imposed during COVID-19,” said Surendra Hiranandani.
This story will be updated if and when DLF, Sobha and Prestige Group respond to CNBC-TV18’s queries