New Delhi, August 06: Real estate in India may be witnessing green shoots of recovery in select micro markets however over 4.65 lakh units of housing projects across India are significantly behind their delivery deadlines with daunting construction delays.
These projects are on hold for a variety of reasons including financial constraints, execution challenges, surplus supply due to over ambitious launches by developers, environmental clearances and slowing sales among others.
Total value of projects facing construction delays is Rs 3.3 lakh crore or over US $47 billion. Interestingly, in the National Capital Region (NCR) over 70% of the projects pending execution are fully sold out but not delivered post the completion deadline. Hence the developers here are under the maximum distress as they face the buyer pressure to complete the sold units.
Nearly 1.80 lakh units valued at Rs 1.22 lakh crore are facing an uncertain future in the NCR region (Gurgaon, Noida, Greater Noida, Ghaziabad, Faridabad).
In the Mumbai Metropolitan Region (MMR), 1.05 lakh units worth Rs 1.12 lakh crore are pending completion. Since over 40% of these projects are absorbed, there are fewer customers when compared to NCR, who are facing a scenario of non-delivery by developers. (MMR includes, Mumbai, Navi Mumbai and Thane).
“Although the markets are facing significant execution delays we do expect the reputed developers to perform well. We also anticipate that the resolution to this difficult scenario will occur in the form of consolidation that will be led by the larger and more capable developers who have the construction and execution capability to meet their promises.,” said Mr. Samir Jasuja, Founder and MD of PropEquity.
Kolkata and Hyderabad have been relatively insulated as compared to other regions as only 15,552 and 13,710 units respectively are pending execution with a valuation of Rs 6,175crore and Rs 7,778crore respectively. Both these cities were able to sell less than half of these projects.
As Bangalore is an end-user driven market, only 40% of the projects pending execution were sold as these projects found few takers only. Total value of these projects stood at Rs 26,454 crore for 38,242 units.
Pune, which has 22,517 units on hold, witnessed only 35% absorption of these units. Comparatively, Chennai with 20,847 units facing execution challenges saw 47% of these projects being sold with a total value of Rs 9,511crore.
Office leasing across top 6 cities at 30.4 mn sq ft, 130% YoY growth in H1 2022: Savills
August 9, 2022: Office space absorption across India’s six major cities stood at 30.4 mn sqft registering a 130% year...
Chandni Chowk continues to rule Delhi’s commercial market roster for decades
By Sheetal Agrawalla, MD, Galaxy Group With 4-6 lakh daily footfall, Chandni Chowk is one of the most renowned and...
Reliance Smart Bazaar’s 2nd store in Delhi-NCR opens at Pacific Mall D21
Delhi NCR: The Pacific Mall D21 recently launched the Reliance Smart Bazaar store on the first floor of the mall,...
Planet Smart City, Tree-Nation partner to plant over 1,200 trees globally
August 9, 2022: Proptech company, Planet Smart City has partnered with Tree-Nation, a non-governmental organisation (NGO) which enables businesses and...
Brigade to develop land in South India
Bengaluru, August 9, 2022: Brigade Group has signed definitive agreements for prime land parcels in Chennai and Bengaluru, which have...
CBRE facilitates Rs 85 crore bungalow deal
New Delhi, August 8, 2022 – CBRE South Asia Pvt. Ltd, recently facilitated one of the biggest residential transactions in...
Interviews4 weeks ago
Building an ecosystem where people could work, play and entertain, says BHIVE CEO
New Launches4 weeks ago
Aludecor aims Rs 1100 cr turnover by 2025 from new products and exports business
News4 weeks ago
Office leasing in India records highest-ever quarterly growth of 18.2 mn sq ft in Q2’22
Tech Take4 weeks ago
IoT and M2M: How the two techs differ
News3 weeks ago
Happiest Minds purchases 2.4 lakh sq ft office space in Bengaluru
Tech Take4 weeks ago
Functioning of IoT sensors explained
Interiors4 weeks ago
Bonito Designs join hands with Gauri Khan, Manish Malhotra to offer bespoke home interiors to the first few customers
News3 weeks ago
125 new project registration applications in UP RERA during the period of Jan-June’22