629,000 homes valued at Rs 5 trn delayed or stalled in top-7 cities: Report

These projects were launched in 2014 or earlier. About 173,730 of these units are completely stalled.

About 629,000 residential units have substantially delayed or completely stalled in the country's top 7 cities, says a new report.

At least 71 per cent of these delayed units fall within the Rs 80 lakh and under price bracket, 18 per cent in the premium segment, and 11 per cent in the luxury category, says the report by Anarock Property Consultants.

Launched in 2014 or earlier, the total value of the currently stuck/delayed housing stock exceeds Rs 5.05 trillion. Nearly 28 per cent (about 173,730) of these units are completely stalled, the report said.

NCR has overtaken the Mumbai Metropolitan Region with a 52 per cent share of the stuck/delayed stock, the highest in the top 7 cities with a value of Rs 2,49,540 crore, it said.

MMR reduced its overall share with several projects getting completed in the last year.

Currently, it has 28 per cent of the total affected stock with a value of Rs 152,105 crore, Anarock said.

Pune, the other major western market, has an eight per cent share of stuck/delayed units with a value of Rs 29,390 crore, it said.

In southern cities, housing projects are mostly on track.

Hyderabad, Bengaluru and Chennai together have just 11 per cent of the total delayed/stuck units, with Chennai comprising a mere two per cent.

The approximate value of delayed/stuck projects in these three cities is Rs 56,420 crore. Kolkata has a 5 per cent share valued at Rs 17,960 crore.

Prashant Thakur, Director & Head-Research, Anarock Property Consultants said, “For the 2019-end tally of 576,000 units, we 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 629,000 units that are yet to be completed across the top 7 cities.”

“Previously, NCR had a 35 per cent share of total delayed units (in 2019).

"However, its share now increased to 52 per cent as several projects launched in NCR in 2014 are also included," he says.

“There are many possible reasons, including Covid-19, funding issues, and litigation.

"The decrease in delayed units in Pune and MMR is remarkable - from 16 per cent and 36 per cent by 2019-end to 8 per cent and 24 per cent by H1 2021-end.”

Photograph: Rupak De Chowdhury/Reuters