India’s strange real estate sector: of delayed projects and surplus houses.
Emaar MGF, a joint venture between MGF Developments Ltd and Emaar Properties PJSC, Dubai has been one of the leading FDI players in the Indian real estate market.
When a player this big delays projects, the confidence of the investors. Specially in a developing country such as India where people pour in all their savings to build a house.
One such project of the Emaar MGF company, The Palm Drive, in the Indian national capital region began late in 2007 and the developers were to hand over the houses by 2010. The company faced serious protests.
— Snehil Gambhir (@AVN_SGambhir) November 8, 2014
However, five years after the promised date, the company manages to deliver and Ashish Jerath, Vice President Sales, Emaar MGF said in a press note, “This is a noteworthy milestone for us highlighting our commitment towards completion and delivery of the existing projects.”
— news attitude (@newsattitude) April 7, 2015
While according to records, the company had applied for an occupancy certificate back in April 2014 itself, experts blame government hassles for the delay post that.
It would be interesting to note that India has more number of houses than households. Census 2011 data states that the number of urban households has gone up from 187 million in 2001 to 247 million in 2011. However, the number of houses has gone up by 81 million to 331 million in 2011. There are over 21 million houses than households. Yet projects are delayed, possession is not given on time and prices are sky rocketing.
Where the Indian real estate sector heading towards is yet another tale. Till we get the opinions of the experts to you, we shall bask in the good news that Emaar MGF has given to its customers today.