If not for COVID-19, the top 7 cities were to see the delivery of nearly 4.66 lakh units by 2020-end.
Launched after 2013, many of the projects were in the final leg of completion. With almost zero construction activity in last few months due to the lockdown, the completion deadlines for almost all these projects has got extended.
Most state RERAs have already given a 6-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 2 years for others.
2021 was to see completion of nearly 4.12 lakh units across the top 7 cities – 12% lower than in 2020. Most of these projects will probably also get delayed.
Anuj Puri, Chairman – ANAROCK Property Consultants says, “Homebuyers will have to adjust to new realities. As many as 4.66 lakh units were slated to be delivered in 2020 and another 4.12 lakh in 2021. Maximum completions (in both years) were to happen in NCR (approx. 2.40 lakh units). This region is set to witness more project delays over and above the backlog of over 2 lakh 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 lakhs of labourers have left cities and migrated back to their villages. Moreover, many of the top cities are still grappling with the virus.”
Prior to COVID-19, the top 7 cities were to see completion of over 8.78 lakh units in 2020 and 2021 combined. Of this total expected supply, nearly 4.66 lakh units were to be added in 2020 and the remaining 4.12 lakh units in 2021.
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.