Due to funding crunch in the construction industry, the outlook for people who bought units in completely stalled projects is disastrous, while the prospects for buyers in heavily delayed projects are bleak, according to real estate consultancy Anarock.
The overall value of the 1.74 lakh homes that are totally stuck across the seven top cities currently exceeds ₹1,40,613 crore. About 66 per cent of these units fall in the price bracket of under ₹80 lakh.
Prashant Thakur, Director & Head, Research, Anarock Property Consultants, says, “For our earlier 2019-end tally of stalled and heavily delayed projects, we had considered projects launched in 2013 or before. Now, more than one-and-a-half years later, we have included projects launched in 2014 as well. Thus, there is a rise in the numbers — as of H1 2021-end, we have nearly 6.29 lakh units that are yet to be completed across the top seven cities.”
NCR has maximum stalled stock
The Special Window for Affordable and Mid-Income Housing (SWAMIH) fund has come to the rescue of several projects, while the National Buildings Construction Corporation (NBCC) has also ‘adopted’ some others, specifically in NCR.
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NCR has maximum stalled stock of about 1,13,860 units (valued at ₹86,463 crore) or 66 per cent of the total across the top seven cities. MMR has 41,730 totally stalled units (value ₹42,417 crore) or 24 per cent of the total affected stock. Pune, the other major Western market, has a 6 per cent share of stalled units (₹5,854 crore).
In the southern cities, Chennai has no stalled projects. Hyderabad and Bengaluru together have 8,020 stalled units which is a mere 5 per cent share. The approximate value of stalled projects in these two cities is ₹5,788 crore.
In Bengaluru, of the total 3,870 stalled units, 44 per cent are in the mid-segment, 32 per cent in the premium segment, 17 per cent in the luxury category, and just 7 per cent in the affordable housing category; in Hyderabad, of total 4,150 stalled units, 55 per cent are in the mid-segment, 28 per cent in the premium segment and 9 per cent in the luxury category, and in the affordable housing segment.
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Kolkata has a mere 150 stalled units (valued at ₹91 crore). All stalled units are priced ₹80 lakh.
Approximately 6.29 lakh homes are either completely stalled or languishing under heavy delivery delays across the top seven cities.
Launched in 2014 or before, the total value of the currently stuck/delayed housing stock exceeds ₹5.05 lakh crore. Nearly 28 per cent (₹1,73,730) of these units are completely stalled.