Real estate developers increased the pace of construction during 2022 with 4.02 lakh housing units getting completed across seven major cities as compared to 2.79 lakh homes in the previous year, according to Anarock.
The construction works were affected during 2020 and 2021 calendar years because of lockdowns to control the Covid-19 pandemic.
Real estate consultant Anarock, one of the leading housing brokerage firms, tracks primary (fresh sale) residential markets of seven major cities namely Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, Bengaluru, Hyderabad, Chennai and Kolkata. It compiles data of sales, new launches, prices and construction status of projects.
As per the Anarock data, the completion of housing units was highest since 2017. About 4.02 lakh homes were completed in 2022 across the seven cities, a 44 per cent increase from 2021 level when around 2.79 lakh homes got completed.
Of the total completed homes in 2022, the highest were in Mumbai Metropolitan Region (MMR) at 1,26,720 units, almost 80 per cent more than in 2021 when 70,500 units were completed. In Delhi-NCR, the project executions fell marginally to 86,300 units in 2022 from 86,590 units in the previous year.
Pune saw 84,200 units completed in 2022, against 46,080 units in the previous year. Bengaluru, Hyderabad, and Chennai combined witnessed completion of 81,580 units last year against 63,870 units in 2021. As many as 23,190 units got completed in Kolkata during 2022 calendar year as against 11,620 units in 2021.
Anarock Chairman Anuj Puri said, “2022 was a watershed year for the Indian housing sector, with sales breaching the previous peak levels of 2014. In response to this high demand, developers remained focused on completing their previously launched projects."
Over 5.44 lakh units are scheduled to be completed across these seven cities in 2023, he added.
"Construction activity will hopefully remain least impacted even if the pandemic resurfaces, so most completions in 2023 may be as per schedule. Certainly, developers are committed to completing previously launched projects before launching new ones," Puri observed.
Delhi-NCR is slated for maximum completions in 2023 with 1,66,850 units scheduled to be completed during this year. In MMR, about 1,32,900 units are expected to be ready by the year-end. Pune has 94,280 units scheduled to be completed in 2023.
In Bengaluru, around 73,470 units are expected to see completion in the year. Hyderabad has 25,120 units scheduled for completion, while in Kolkata 33,040 units are lined up to be completed during this year. Chennai has the lowest stock as only 18,550 units are scheduled to be completed in 2023.
Anarock mentioned that the completion data of the projects is based on data collected from primary and secondary sources, including RERA and developer websites. Projects that are under various stages of completion have been considered.
"We also include delayed projects that were finally completed during the respective year, again based on primary and secondary sources," Anarock said. The consultant noted that the relevance of the data of project completion is amplified by the fact that project delays have historically been an issue in many Indian cities.
Anarock said that the delays in project completions have resulted in increased demand for ready-to-move-in apartments. In completed homes, there is no construction risk and customers do not need to pay EMIs as well as rent at the same time, the consultant said.