Despite Covid-19 pandemic in the country, about 190 stuck/delayed housing projects accounting for over 73,560 units were completed in 2020.
At the end of 2019 there were as many as 1,322 stuck projects comprising about 5.76 lakh units. By the end of 2020, in all 1,132 projects accounting for about 5.02 lakh units (launched in 2013 or before) are stuck in various stages of (non) completion in the top seven cities. According to a recent Anarock study, the total value of the current stuck or delayed housing stock exceeds ₹4.07 lakh crore.
Anuj Puri, Chairman – Anarock Property Consultants said “Project delays have been the bane of the Indian real estate sector over the last decade. Even the implementation of RERA had only a little impact on this. Among other factors, the liquidity crunch threw up roadblocks for developers, which is why the government intervened with the creation of the Alternate Investment Fund (AIF) in late 2019 with a corpus of ₹25,000 crore. This last-mile capitalization mechanism couched in the SWAMIH fund has proved to be effective in getting stuck projects going again.”
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He further added “The government and RBI’s liquidity-generation initiatives in 2020 also helped 190 projects with over 73,560 units which can finally be handed over to their purchasers or marketed as ready-to-move options getting completed in the year is especially remarkable considering the backdrop of the unique Covid-19 impact on construction activity.”
City-Wise Breakup
Data compiled by Anarock revealed that NCR and MMR together hold a 74 percent ‘majority share’ of currently stuck/delayed units, while the southern metros of Bengaluru, Chennai and Hyderabad account for a mere 8 percent. Pune has about 16 percent share, while Kolkata accounts for a minuscule 2 percent overall share of stuck or delayed projects.
MMR saw the maximum completion - of 84 stuck projects comprising 29,750 units - in 2020. Currently, the region has 500 stuck/delayed projects comprising 1.80 lakh units worth over ₹2,02,145 crore. Towards 2019-end, MMR had about 584 stuck or delayed projects with 2.10 lakh units worth ₹2,34,654 crore.
NCR , which had occupied the second spot after MMR in 2019, now has the maximum stuck housing stock among all cities with 1.90 lakh units worth about ₹1,19,290 crore. Towards 2019-end, the region had 2 lakh stuck or delayed units worth about ₹1,26,040 crore.
Pune saw 44 previously stuck/delayed projects (of about 14,520 units) get completed in 2020. By 2020-end, the city has nearly 230 stuck projects consisting of 80,480 units worth nearly ₹49,667 crore. By 2019-end, Pune had 274 stuck projects with about 95,000 units worth ₹57,000 crore.
Bengaluru saw 20 stuck projects comprising over 9,150 units get completed in 2020. Currently, there are 60 stuck/delayed projects comprising 29,850 units worth over ₹22,276 crore. By 2019-end, the city had about 80 such projects with 39,000 units worth ₹28,080 crore.
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Hyderabad saw the completion of six projects comprising 2,380 units in 2020. Presently, the city has 16 stuck/delayed projects comprising 6,520 units worth over ₹4,305 crore. By 2019-end, the city had about 22 stuck/delayed projects with 8,900 units worth ₹5,467 crore.
Kolkata saw 10 such projects comprising 3,830 units get completed in 2020. Currently, the city has 22 stuck/delayed projects comprising 9,180 units worth over ₹5,436 crore. By 2019-end, the city had about 32 stuck/delayed projects with 13,000 units worth ₹7,327 crore.
Chennai saw 8 projects comprising 4,060 units get completed in 2020. Currently, the city has the least burden of stuck projects among the top seven cities, with about 12 stuck/delayed projects comprising 5,940 units worth over ₹3,886 crore. By 2019-end, the city had about 20 projects with 10,000 units worth ₹6,493 crore.