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Your Dream House May Not Be Ready By FY13

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Your Dream House May Not Be Ready By FY13

Last updated: June 20 2011
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  • Your Dream House May Not Be Ready By FY13

    Press Trust of India / New Delhi June 19, 2011, 11:21 IST

    Realty research firm PropEquity today said completion of about 4.8 lakh residential units, scheduled by FY13, across the country are likely to be delayed due to increased project delivery commitments and escalating construction costs.

    "It is estimated that 4,80,000 residential units across affordable, mid and luxury housing segments, scheduled for completion during FY13, will be delayed in the 11 cities," PropEquity said in its report - Timely Project Execution: A Key Challenge.

    Out of these residential units, about 2.27 lakh are affordable houses, while 2.29 lakh comprise the mid-segment. The rest belong to the luxury housing segment, it added.

    The report said there will be a negative impact on execution of projects due to increased delivery commitments and escalating input costs.

    "Taking into account price increases in four key construction components, steel, cement, labour and bricks, there is an 18% gross increase in construction cost over the last two years [2011 over 2009]," the report said.

    The study added that rising costs are impacting the companies' profit margins and hence developers are likely to lose interest in projects, resulting in delay in completion.

    Besides, the commitments by the developers on new projects have increased many-fold than the actual delivery happening on the field and it will also lead to delays in giving possessions of houses.

    "In 7 of the 11 cities studied, the commitments made by developers with respect to project delivery during FY13, show a more than two-fold increase over the last 3 years [2011-13 as compared with 2008-10]," PropEquity said.

    The study covered 11 locations; Gurgaon, Noida, Greater Noida, Mumbai, Navi Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad and Kolkata.
  • #2

    #2

    Re : Your Dream House May Not Be Ready By FY13

    obviously!!!press report or no press report.. Anyone who lives in gurgaon or frequents the place ( same Is true for noida, fbd nd the rest of ncr) can just take a look at various projects and tell that whatever delivery promises were made by builders are well on course to be broken.

    It's been ages that dlf belair tower is standing, lonely.. Like an embryo who wad promised that he'd see the world nine months later. Now, after a 30 odd months. Neither the embryo nor the father of the child ( read K.P.Singh) gives a damn, when the baby's delivered, or If at all it's delivered. The big point is that investor earned. As far as the end user goes... Err,I'm sorry!!! End who???
    Same's the case with 90% of the builders. Emaar is woefully short on it's promises and everyone knows that the 20th bakshi heir is going to complete central park 2. Bptp fpl still doesn't have OCs even 2 years after completion. Ardee city looks like a deserted city bombed by the Nazis when they found that the majority population was Jew. Don't even get me started on the likes of legend, chd, spire, tulip etc
    the problem has gone viral with precious few like bestech, Vipul, ireo etc keeping anywhere close to the promised schedule. Aise mein it's very clear that all projections abt delivery of livable homes are going to fall flat on their face.
    But as K.P.Singh or Kabul chawla or some chandra Or sheikh al maktoum or shravan Gupta or bakshi or some other such head honcho would tell you... The investor made huge money...

    "sir! What abt the end user??"

    and expect to hear a terse reply which wud say something like... Errr.. The end who???
    sigpicWe are the ones who wanna choose..Always wanna play ..but we never wanna loose!!!

    Comment

    • #3

      #3

      Re : Your Dream House May Not Be Ready By FY13

      if a buyer/end user , irrsepective of delivery date mentioned by builder( typially 30-36 months) discounts it keeps expectations at 5 yrs he wont be disappointed
      calulations/loans/emi planned with delivery of 3 yrs will make planning go haywire.....

      Comment

      • #4

        #4

        Re : Your Dream House May Not Be Ready By FY13

        Can't agree more.

        Sad but true.

        Originally posted by St_Anger View Post
        obviously!!!press report or no press report.. Anyone who lives in gurgaon or frequents the place ( same Is true for noida, fbd nd the rest of ncr) can just take a look at various projects and tell that whatever delivery promises were made by builders are well on course to be broken.

        It's been ages that dlf belair tower is standing, lonely.. Like an embryo who wad promised that he'd see the world nine months later. Now, after a 30 odd months. Neither the embryo nor the father of the child ( read K.P.Singh) gives a damn, when the baby's delivered, or If at all it's delivered. The big point is that investor earned. As far as the end user goes... Err,I'm sorry!!! End who???
        Same's the case with 90% of the builders. Emaar is woefully short on it's promises and everyone knows that the 20th bakshi heir is going to complete central park 2. Bptp fpl still doesn't have OCs even 2 years after completion. Ardee city looks like a deserted city bombed by the Nazis when they found that the majority population was Jew. Don't even get me started on the likes of legend, chd, spire, tulip etc
        the problem has gone viral with precious few like bestech, Vipul, ireo etc keeping anywhere close to the promised schedule. Aise mein it's very clear that all projections abt delivery of livable homes are going to fall flat on their face.
        But as K.P.Singh or Kabul chawla or some chandra Or sheikh al maktoum or shravan Gupta or bakshi or some other such head honcho would tell you... The investor made huge money...

        "sir! What abt the end user??"

        and expect to hear a terse reply which wud say something like... Errr.. The end who???

        Comment

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