MahaRERA registration lapsed 388 projects in 2021 impacts 20,955 units; why and how does MahaRERA registration impact the real estate builders in Pune? Let’s cover all the facts behind it.
MahaRERA registration has revealed a list of 407 projects throughout Maharashtra that ‘lapsed’ in 2021, including 388 residential and 19 commercial projects. According to ANAROCK Research’s data analysis, the 388 lapsed projects account for about 20,955 housing units, with 52 percent (around 10,682 units) already sold. The remaining 10,093 units are still on the market.
“Developers are concerned about cash flow difficulties and registration lapses from an industry viewpoint.” Therefore, developers are attentively examining the problem as responsible industry stakeholders and are dedicated to finding a suitable solution within the MahaRERA Act.
This would allow stronger players to take on a stalled project, allowing customers to receive their houses,” said HiralSheth Gandhi, Director of Marketing at Sheth Creators.
List out five cities with maximum lapsed projects:
MMR, Pune, Aurangabad, Nagpur, and Satara are the top five cities with the most lapsed projects.
The Mumbai Metropolitan Region (MMR) has the most ‘lapsed’ residential developments, with 145 projects totaling 9,236 units, of which 5,983 units (or 65 percent) have been sold 3,253 remain unsold.
There are at least 92 lapsed housing projects in Pune, totaling 4,852 units, of which 2,488 (about 51 percent) have been sold, and 2,364 remain unsold.
The registration numbers of 27 housing developments in Aurangabad have expired. There are around 1,116 apartments in these developments, with 254 (23%) sold and 862 remaining unsold.
In Nagpur, around 23 housing complexes totaling 1,392 units, with 777 (almost 56%) apartments sold and the remaining 615 units unsold.
RERA registration has lapsed for 23 housing developments in Satara, totaling 1,664 units, of which 661 (about 40%) have been sold, and 1,003 remain unsold.
What’s Underneath the Surface?
“The RERA registration numbers of these projects lapsed for many reasons,” says Santhosh Kumar, Vice Chairman of ANAROCK Group, in response. The IL&FS crisis held real estate – notably the residential market – captive after RERA was introduced.
Due to escalating nonperforming assets (NPAs), NBFCs were a key source of finance for the real estate industry. However, with the IL&FS debacle, NBFC funding slowed dramatically.”
Private equity investment into the industry has also slowed to a trickle as investors have become wary of market signals and have begun exercising extreme care before lending to developers.
Developers of Pune in grades B and C were the worst hit since financing to them was limited, causing delays in the development of numerous projects. In addition, the pandemic aggravated the position for medium to small players because of disruptions in demand and the availability of raw materials, just as financial concerns were beginning to be rectified.
Buyers have favored branded projects considerably in the previous two years. As a result, the medium-to-small players were the most impacted, with their projects making up most of the expired RERA registrations.
Santhosh Kumar adds, “Fortunately, government-backed funds are now recognizing projects that are nearing completion and giving last-mile assistance.” “In addition, some of the larger developers are acquiring and revitalizing smaller properties.”
MahaRERA registration impacts real estate builders in Pune because buyers have favored branded projects in the last two years. The continuing real estate industry consolidation is projected to continue and accelerate from here, as developers who cannot complete projects pass them over to a larger developer with strong financials and execution capabilities.