As many as 6.29 lakh homes are either completely stalled or languishing under heavy delivery delays across the top seven cities. At least 71 percent worth Rs 4.49 lakh of these delayed or stuck units fall within the price-sensitive Rs 80 lakh budget range, an analysis by Anarock has said.
The overall value of the 1.74 lakh homes which are totally stuck across the seven top cities currently exceeds Rs 1,40,613 crore.
Just 18 percent fall in the premium segment, and another 11 percent in the luxury category, a report by Anarock has said.
Of approximately 6.29 lakh delayed/stuck units, close to 39 percent (approximately 2,47,930 units) is in the mid-range segment where units are priced within Rs 40-80 lakh, followed by 32 percent (approximately 2,01,350 units) in the affordable housing segment (priced <Rs 40 lakh).
Premium homes (Rs 80 lakh to Rs 1.5 crore) account for 18 percent (approximately 1,11,050 units). The luxury segment (units priced >Rs 1.5 crore) has just 68,300 delayed/stuck units in the top seven cities, the analysis said.
Launched in 2014 or before, the total value of the currently stuck/delayed housing stock exceeds Rs 5.05 lakh crore. Nearly 28 percent (approximately 1,73,730) of these units are completely stalled.
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NCR has a maximum stalled stock of approximately 1,13,860 units (approximately valued at Rs 86,463 crore) or 66 percent of the total across the top 7 cities. Of the total stalled units in the region, 50 percent is in the mid-segment, followed by 24 percent in the affordable segment, 20 percent in the premium segment and 6 percent in the luxury category, the report said.
MMR has 41,730 totally stalled units (approximately valued at Rs 42,417 crore) or 24 percent of the total affected stock. The maximum stock in MMR is in the luxury category (37 percent), followed by 22 percent in affordable housing, 21 percent in the premium segment, and 20 percent in the mid-segment.
In NCR, out of the total 3,28,600 delayed/stuck units, 48 percent is in the mid-range segment, 31 percent in the affordable category, 16 percent in the premium segment and just 5 percent in the luxury segment. MMR has approximately 1,49,620 delayed/stuck housing units as of H1 2021-end. Of this, 37 percent is in the affordable segment, 23 percent in the luxury segment, 21 percent in the mid-range segment, and 19 percent in the premium segment, the analysis said.
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NCR has overtaken MMR with a 52 percent share of the stuck/delayed stock, the highest in the top 7 cities with an approximate value of Rs 2,49,540 crore. MMR has reduced its overall share with several projects getting completed in the last year. Currently, it has 28 percent of the total affected stock with an approximate value of Rs 1,52,105 crore, the analysis said.
Given the huge 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 at best, the analysis said.
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.
Pune, the other major Western market, has a 6 percent share of stalled units (worth approximately Rs 5,854 crore). Pune has 52 percent of its stalled stock share in the mid-segment, 26 percent in the affordable segment, 15 percent in the premium segment, and 7 percent in the luxury category.
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In the Southern cities, Chennai has no stalled projects. Hyderabad and Bengaluru together have 8,020 stalled units which is a mere 5 percent share. The approximately value of stalled projects in these two cities is Rs 5,788 crore.
In Bengaluru, of the total 3,870 stalled units, 44 percent are in the mid-segment, 32 percent in the premium segment, 17 percent in the luxury category, and just 7 percent in the affordable housing category; in Hyderabad, of total 4,150 stalled units, 55 percent are in the mid-segment, 28 percent in the premium segment, 9 percent in the luxury category, and in the affordable housing segment, the analysis said.
Kolkata has a mere 150 stalled units (valued at approximately Rs 91 crore). All stalled units are priced less than Rs 80 lakh.
“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 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 7 cities,” said Prashant Thakur, Director & Head - Research, ANAROCK Property Consultants.
“Previously, NCR had a 35 percent share of total delayed units (in 2019). However, its share now increased to 52 percent as several projects launched in NCR in 2014 are also included, he says.
“There are many possible reasons, including COVID-19, funding issues, and litigations. The decrease in delayed units in Pune and MMR is remarkable - from 16 percent and 36 percent by 2019-end to 8 percent and 24 percent by H1 2021-end,” he adds.
|City||Stalled Units (launched in 2014 or before)||Approx. Value (In Cr)|