Housing sector is expected to face a shortage of supply this year as most of the under construction projects have gone only a halfway through.
The prospective buyers will have to wait for one or two years more for getting their new homes. Though the year 2013 was predicted to see completion of more projects, it won’t happen this year, leading housing sector to face shortage of supply.
The developers still say that they are on the close to complete their projects, the market experts are really doubtful on this.
According to the report by a leading property consultant, most of the cities; with Chennai as an exception, the supply is sure to lower or half- way behind the expected target.
For instance the developers delivered 360 flats in Gurgaon in the first two months of 2013. Here the predicted delivery was 38,684 housing units by the end of the year. It means that the city was expected to deliver over 300 housing units per month, which they have met in two months’ time.
The situation in Noida, (160 delivered units against the expected 49,540), Mumbai (1,378 units against the 22,820), etc. is also anything different. These cities also will not meet the expected target.
By delivering 6,024 units in the first two months, Chennai showed that the city will meet the target of 51,592 by the end of this year.
The main reason is that while some of the developers are concentrating on completing their committed projects, some others are diverting their interests to other new projects.
Samir Jasuja, PropEquity founder and CEO, says that the smaller projects may be completed in time but not big residential projects like township. The bigger projects will face delivery delay.
Another property expert approves this opinion by stating that the developers will not be able to complete half of the projects. He too admits that the housing sector will face lower delivery this year, leading the prospective buyers to find some other option.