India's nine major property markets may see a delivery of nearly 7.95 lakh housing units between October 2019 and December 2020, according to a report.
Over 3.1 lakh units are set to enter the market in the last three months of 2019 while the remaining 4.83 lakh units would be delivered through the course of 2020, the report by PropTiger.com said.
Real estate developers are expected to deliver over 4.5 lakh affordable housing units in the coming 15 months, the report said.
If the 2.88 lakh units that have been delivered between January and September 2019 are factored in, the total number of units delivered between 2019 and 2020 would exceed the one-million mark, it said.
Majority of the units would be delivered in the MMR and the NCR markets. While the MMR would get homes delivery of 2.45 lakh homes, the NCR would see delivery of over 2 lakh units. Another 1.29 lakh homes would be delivered in Pune between October 2019 and December 2020, the report said.
Bulk of the units set for delivery in the next 15 months would be 2BHK and 1BHK units. Nearly 3.45 lakh of all units set for delivery would be 2BHK homes while 2.16 lakh homes would be in the 1BHK configuration. Another 1.95 lakh units will be 3BHK homes, the report said.
While the majority of 2BHK units would be concentrated in the NCR, a large part of the 1BHK homes would come up in Mumbai, a market where smaller homes are popular among buyers because of space constraint.
"The demand for affordable homes is expected to increase in the near future amid record low-interest rates and higher tax benefits. Considering 26 per cent of all units set for delivery in the next 15 months are unsold homes, new home buyers will have plenty of ready-to-move-in options to pick from," said Dhruv Agarwala, Group CEO, Elara Technologies, which owns PropTiger.com.
In the past, project delays have resulted in developers attracting negative publicity, which has dented the fortunes of many and left several others struggling for survival. Now that the government has announced last-mile funding for stuck projects through the launch of the Rs 20,000 crore stress fund, project delivery rates will hopefully improve further in the near future, he said.