The overall value of the 1.74 lakh homes which are totally stuck across the 7 top cities currently exceeds Rs 1,40,613 crore.
Close to 6.29 lakh homes are either completely stalled or languishing under heavy-delivery delays across the top 7 cities. At least 71% (approx. 4.49 lakh) of these delayed or stuck units fall within the price-sensitive Rs 80 lakh budget range, according to an ANAROCK study.
The overall value of the 1.74 lakh homes which are totally stuck across the 7 top cities currently exceeds Rs 1,40,613 crore. 66% of these units fall in the price bracket of under Rs 80 lakh.
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.
Stalled Projects – City-wise Data:
# NCR has the maximum stalled stock of close to 1,13,860 units (approx. value Rs 86,463 cr) or 66% of the total across the top 7 cities. Of the total stalled units in the region, 50% is in the mid-segment, followed by 24% in the affordable segment, 20% in the premium segment and 6% in the luxury category.
# MMR has 41,730 totally-stalled units (approx. value Rs 42,417 cr) or 24% of the total affected stock. The maximum stuck stock in MMR is in the luxury category (37%), followed by 22% in affordable housing, 21% in the premium segment, and 20% in the mid-segment.
# Pune, the other major Western market, has a 6% share of stalled units (worth approx. Rs 5,854 cr). Pune has 52% of its stalled stock share in the mid-segment, 26% in the affordable segment, 15% in the premium segment, and 7% in the luxury category.
# In the Southern cities, Chennai has no stalled projects. Hyderabad and Bengaluru together have 8,020 stalled units which is a mere 5% share. The approx. value of stalled projects in these two cities is Rs 5,788 cr.
# In Bengaluru, of the total 3,870 stalled units, 44% are in the mid-segment, 32% in the premium segment, 17% in the luxury category, and just 7% in the affordable housing category. In Hyderabad, of total 4,150 stalled units, 55% are in the mid-segment, 28% in the premium segment, 9% in the luxury category, and in the affordable housing segment.
# Kolkata has a mere 150 stalled units (valued at approx. Rs 91 cr). All stalled units are priced >Rs 80 lakh.
The Larger Palette – Stalled & Delayed Projects
Altogether, close to 6.29 lakh homes are either completely stalled or languishing under heavy delivery delays across the top 7 cities. At least 71% (approx. 4.49 lakh) of these delayed or stuck units fall within the price-sensitive Rs 80 lakh budget range. Just 18% fall in the premium segment, and another 11% in the luxury category.
Launched in 2014 or before, the total value of the currently stuck/delayed housing stock exceeds Rs 5.05 lakh crore. Nearly 28% (approx. 1,73,730) of these units are completely stalled.
# NCR has overtaken MMR with a 52% share of the stuck/delayed stock, the highest in the top 7 cities – approx. value Rs 2,49,540 cr.
# MMR reduced its overall share with several projects getting completed in the last year. Currently, it has 28% of the total affected stock – approx. value Rs 1,52,105 cr.
# Pune, the other major Western market, has an 8% share of stuck/ delayed units – approx. worth Rs 29,390 cr.
# In the Southern cities, housing projects are mostly on track. Hyderabad, Bengaluru and Chennai together have just 11% of the total delayed/stuck units, with Chennai comprising a mere 2% – approx. value of delayed/stuck projects in these three cities is Rs 56,420 cr.
# Kolkata has a 5% share valued at Rs 17,960 crore.
Commenting on the same, Prashant Thakur, Director & Head – Research, ANAROCK Property Consultants, said, “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-a-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.”
“Previously, NCR had a 35% share of total delayed units (in 2019). However, its share has now increased to 52% as several projects launched in NCR in 2014 are also included. 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% and 36% by 2019-end to 8% and 24% by H1 2021-end,” he added.
City-Wise Budget Segmentation
Of close to 6.29 lakh delayed/stuck units, close to 39% (approx. 2,47,930 units) is in the mid-range segment where units are priced within Rs 40-80 lakh, followed by 32% (approx. 2,01,350 units) in the affordable housing segment (priced <Rs 40 lakh). Premium homes (Rs 80 lakh to Rs 1.5 cr) account for 18% (approx. 1,11,050 units). The luxury segment (units priced >Rs 1.5 cr) has just 68,300 delayed/stuck units in the top 7 cities.