The real estate sector in Chennai is witnessing a significant reduction in the waiting time for homebuyers to take possession of their homes. This positive trend is evident in both large and small construction projects, with the waiting time decreasing by almost 36% and 29% respectively, compared to 2019.
Factors Contributing to Reduced Waiting Time: The decrease in waiting time can be attributed to various factors, including the strict enforcement by the Tamil Nadu Real Estate Regulatory Authority (TN RERA). The regulatory body has been instrumental in ensuring that builders adhere to the project timelines, thereby reducing the waiting time for homebuyers.
Impact of Modern Construction Techniques: The modernization of construction technology has also played a crucial role in reducing the completion time of projects. The use of pre-fabrication methods has accelerated the construction process, enabling builders to complete projects faster.
Improved Sales Velocity and Financial Cooperation: The improved sales velocity has resulted in better cash flow for builders, enabling them to complete projects on time. Additionally, financial institutions have been more cooperative in funding the last phase of projects where builders often face financial constraints.
Chennai Leads in Completion Time: According to a report by Anarock Consultants, Chennai has seen the highest reduction in waiting time, from 5.6 years in 2019 to 3.6 years in the first half of 2024. Among all large projects launched and completed between 2014 and the first half of 2024, Chennai recorded an average completion time of 3 years for smaller projects.
Comparison with Other Cities: Compared to other cities like Hyderabad, Bengaluru, Kolkata, and Mumbai Metropolitan Region (MMR), Chennai has shown a significant reduction in waiting time. The highest waiting time was recorded in Kolkata, followed by NCR and Pune.
Conclusion: The reduction in waiting time for homebuyers in Chennai is a positive trend in the real estate sector. It is a result of the combined efforts of regulatory authorities, builders, and financial institutions. The strict enforcement of project timelines by TN RERA, the use of modern construction technology, improved sales velocity, and financial cooperation have all contributed to this positive trend.