The government and Reserve Bank of India’s (RBI) initiatives to infuse liquidity in the system appear to have had a positive impact on the residential sector, as the number of stuck housing projects has come down in the last one year.
As many as 190 stuck or delayed housing projects accounting for more than 73,560 units were completed in 2020. At the end of 2019, a total of 1,322 projects comprising about 5.76 lakh units, which were launched in 2013 or before, were stuck at various stages due to non-completion in the top seven cities. However, this number was down to 1,132 projects comprising about 5.02 lakh units at the end of 2020. The total value of present stuck or delayed housing stock is more than Rs 4.07 lakh crore, according to findings by ANAROCK Property Consultants.
Despite challenges due to the pandemic, developers stayed on track to complete projects amid rising demand for ready homes in 2020. The Mumbai Metropolitan Region (MMR) saw maximum completions of 84 stuck projects comprising around 29,750 units, and currently has about 1.80 lakh stuck/delayed units worth over Rs 2.02 lakh crore. The National Capital Region (NCR), which earlier held second place in 2019 after MMR, now has the most stuck housing units at around 1.90 lakh units worth approximately `1.19 lakh crore.
NCR and MMR together currently have 74% of the stuck or delayed units, while Bengaluru, Chennai and Hyderabad have just 8% of the overall share. Pune has a share of about 16%, while Kolkata accounts for a minuscule 2% overall share of stuck or delayed projects. Chennai has the fewest stuck projects among the top seven cities — 12 projects with around 5,940 units.
Anuj Puri, chairman, ANAROCK Property Consultants, said, “Project delays have been the bane of the Indian real estate sector over the last decade. Even the implementation of RERA had only a little impact on this. Among other factors, the liquidity crunch threw up roadblocks for developers, which is why the government intervened with the creation of the Alternate Investment Fund in late 2019 with a corpus of Rs 25,000 crore. This last-mile capitalisation mechanism couched in the SWAMIH fund has proved to be effective in getting stuck projects going again.”
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