Analysis of Sources of Claims in Residential Real Estate Asset Delivery

Abstract

Residential real estate sector in India plays a pivotal role in supplying living accommodation to meet the ever-rising demand for housing. In the Indian context, the growth in housing supply has always lagged behind the demand. The present study examines the residential real estate sector to identify recurrent sources of claims hampering efficient delivery of housing assets. In mass urban housing supply by private real estate promoters/developers, 19 key factors reflective of the absence of time-bound, cost-certain and scope-adherent delivery of residential assets were identified. Following this, a questionnaire survey was undertaken to gain the viewpoints of relevant sector-specific stakeholders on the identified factors. Statistical analyses were subsequently conducted to arrive at key claim-causing factors bearing relevance to deficient housing delivery in India. Assessment of the viewpoints of a diverse set of real estate stakeholders pointed toward the presence of significant deterrents in the form of delays and cost-escalators, leading to unavoidable claims and litigation between residential real estate promoters/developers and consumers. The findings indicate the pressing need to optimize residential real estate asset delivery in India through the addressing of recurrent claims with respect to delays and cost-escalation.