For some months, COVID-19 brought construction activity to its knees in 2020, followed by restricted on-site activity.
Despite this, as many as 190 stuck/delayed housing projects accounting for over ~73,560 units were completed in 2020, reveals a recent ANAROCK study.
As of 2020-end, altogether 1,132 projects accounting for approx. 5.02 lakh units (launched in 2013 or before) are stuck in various stages of (non) completion in the top 7 cities. Towards 2019-end, there were as many as 1,322 stuck projects comprising approx. 5.76 lakh units.
The total value of the current stuck or delayed housing stock exceeds INR 4.07 lakh Crore.
MMR saw maximum completions of 84 stuck projects comprising ~29,750 units in 2020, and now has ~1.80 lakh stuck/delayed units worth over INR 2,02,145 Cr.
Anuj Puri, Chairman - ANAROCK Property Consultants says, “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 INR 25,000 crore. This last-mile capitalization mechanism couched in the SWAMIH fund has proved to be effective in getting stuck projects going again."
"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."
Data reveals that NCR and MMR together hold a 74% 'majority share' of currently stuck/delayed units, while the southern metros of Bengaluru, Chennai and Hyderabad account for a mere 8%. Pune has an approx. 16% share, while Kolkata accounts for a minuscule 2% overall share of stuck or delayed projects.
In the present end-use driven residential market environment, delivery of RTM inventory was the veritable Holy Grail in 2020, and will continue to be the single-most impactful factor throughout 2021.
(Note: Stuck/delayed projects include all projects that were launched in 2013 or before and are yet to be completed. These are classified as ‘highly delayed’ units. It also includes completely stalled projects.)
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.