Nearly 50 Percent Homes to Be Delivered in 2013 Delayed

Currently, in case of project delays, the contract between the buyer and builder offers a per square feet compensation. "But the amount is minuscule," added Gaggar.

Project in Delhi-NCR witnessing late delivery rate of around 74 percent followed by Mumbai and Chennai both at 61 percent, Bangalore 59 percent and Kolkata 57 percent. "Data indicates that there would be more delays going forward because of the stress on cash flows of developers," according to Pankaj Kapoor, Managing Director at Liases Foras.

"There is a liquidity concern on both the supply and demand side due to high interest rates and high prices. The impact of the slowing economy is reflecting on the ground now, in demand slowing down and execution of projects being hit," said Anshuman Magazine, managing director of CB Richard Ellis.

According to developers, lack of fund is one among the reason of project delays. They have to face lot many challenges to get approvals on time.

"After the first approval, subsequent no-objection certificates and approvals like water, electricity connections, completion certificate and others get delayed," said Lalit Kumar Jain, president of the Confederation of Real Estate Developers Associations of India (CREDAI).