Construction work of nearly 4.8 lakh homes worth ₹4.48 lakh crore is currently stuck or significantly delayed across seven major cities, although builders have completed 37,000 such units so far this year, according to property consultant Anarock.
For its research, Anarock has taken only those housing projects that were launched in 2014 or before across seven cities: Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad and Pune. As per the data, 36,830 languishing homes were completed in these cities between January 2022 and May 2022. At the end of May 2022, Anarock said that 4,79,940 units worth ₹4,48,129 crore were stuck in various construction stages across these seven cities.
"Developers remain committed to completing their projects and are capitalizing on the ongoing demand for ready-to-move homes," said Prashant Thakur, Senior Director & Head - Research, Anarock.
"What is notable is that they are maintaining momentum despite considerable headwinds from increased input costs, which have gone through the roof in the last five months. The fact that housing demand has remained strong in last two years obviously helps," he said.
“Several large developers as well as the SWAMIH fund and state-owned NBCC have taken over stuck/delayed inventories and are completing pending construction works,” Thakur said.
Anarock said that the Delhi-NCR and MMR together account for 77 per cent of the total stuck/delayed housing units, while the southern metros Bengaluru, Chennai, and Hyderabad have just 9 per cent. Pune has about 9 per cent share, while Kolkata accounts for 5 per cent.
In MMR, 1,28,870 units are stuck/delayed worth ₹1,84,226 crore. The region had 1,34,170 languishing units worth ₹1,91,807 crore at the end of the last year. Around 5,300 units were completed in MMR during January-May this year.
Bengaluru saw completion of 3,960 units during January-May 2022. Currently, the city has 26,030 stuck/delayed units worth Rs 28,072 crore. At the end of the last year, the IT city had 29,990 stuck/delayed units worth ₹32,345 crore.
In Hyderabad, 1,710 units were completed during January-May 2022. The city currently has 11,450 stuck/delayed units worth ₹11,310 crore, while at the end of December 2021, the figure was 13,160 units worth ₹12,995 crore.
In Chennai, Anarock said that 5,190 units worth ₹3,731 crore are currently stuck or significantly delayed. At the end of 2022, the city had 8,870 such units. Chennai currently boasts of the lowest burden of stuck units among the top seven cities, the consultant said.
Homebuyers in Delhi-NCR have been worst affected with several builders including Jaypee Infratech, Unitech, Amrapali, and The 3C Company, defaulting in their promises to deliver their projects.
Anarock, which is one of the leading property consultants in India, achieved a 32 per cent growth in its revenue at ₹402 crore during the last fiscal year.