If not for COVID-19, the country’s top-seven cities were to see the delivery of nearly 466,000 units by 2020-end. Launched after 2013, many of the projects were in the final leg of completion. With almost zero construction activity in the last few months due to the lockdown, the completion deadlines for almost all these projects has got extended, a release from the real estate company ANAROCK Property Consultants said on Tuesday.
Most state real estate regulatory authorities (RERAs) have already given a six-month extension to developers on previously committed timelines. However, homebuyers’ wait could run into several additional months for well-funded projects, and as much as two years for others.
2021 was to see completion of nearly 412,000 units across the top seven cities, 12% lower than in 2020. Most of these projects will probably also get delayed.
Anuj Puri, Chairman, ANAROCK Property Consultants opined, “Homebuyers will have to adjust to new realities. As many as 466,000 units were slated to be delivered in 2020 and another 412,000 in 2021. Maximum completions of approximately 240,000 units in both years were to happen in the National Capital Region (NCR). This region is set to witness more project delays over and above the backlog of over 200,000 units already delayed in the region from before.”
“The government must intervene to address multiple challenges including labour shortage in top cities. Even if developers have the financial strength, it will still take a while for most of them to resume construction because thousands of labourers have left cities and migrated back to their villages. Moreover, many of the top cities are still grappling with the virus.”
Boosting the demand in India’s beleaguered housing sector would require a collaborative effort between the government, banks and developers, Puri had recommended in a June 17 article published in INFRASTRUCTURE TODAY.
Completions Likely in 2020 & 2021
Prior to COVID-19, the top seven cities were to see completion of over 878,000 units in 2020 and 2021 combined. Of this total expected supply, nearly 466,000 units were to be added in 2020 and the remaining 412,000 units in 2021.
NCR was to see maximum completions in both years, of about 240,000 units. Of this, 101,000 units were to come up in 2020 and another 139,000 units in 2021. The Mumbai Metropolitan Region (MMR) is second with nearly 210,000 units expected to be delivered in two years; 107,000 units in 2020 and nearly 103,000 units in 2021.
Bengaluru was expected to see delivery of nearly 151,000 units in 2020 and 2021. This year the city was likely to see delivery of 101,000 units, while in the next year it was just half at nearly 50,000 units.
Pune was to see completion of nearly 136,000 units in both years; 69,000 in 2020 and 67,000 in 2021.
Kolkata was next with nearly 59,000 units meant to be delivered in two years; 33,900 units in 2020 and nearly 25,100 units in 2021.
Hyderabad was to see completion of more than 45,200 units in both years; 30,500 units in 2020 and another 14,700 units in 2021. Chennai had the least completions in both years; about 37,000 units. Of this, 24,650 units were to complete in 2020 while another 12,520 units in 2021.