Heavily delayed – and even worse, completely stalled – housing projects (launched in 2014 or before) continue to plague the Indian residential sector. While stalled or stuck projects have seen absolutely no construction activity, delayed projects have seen minimal progress.
By Varun Singh
Of the 6.26 lakh heavily delayed homes, the overall value of the 1.74 lakh homes which are totally stuck across the 7 top cities currently exceeds INR 1,40,613 Cr. 66% of these units fall in the price bracket of under INR 80 lakh.
Stalled Projects – City-wise Data:
- NCR has maximum stalled stock of approx. 1,13,860 units (approx. value INR 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 INR 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. INR 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 INR 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. INR 91 Cr). All stalled units are priced >INR 80 lakh.
The Larger Palette – Stalled & Delayed Projects
Altogether, approx. 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 INR 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 INR 5.05 lakh Crore. Nearly 28% (approx. 1,73,730) of these units are completely stalled.
City-wise Data:
- NCR has overtaken MMR with a 52% share of the stuck/delayed stock, the highest in the top 7 cities – approx. value INR 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 INR 1,52,105 Cr.
- Pune, the other major Western market, has an 8% share of stuck/delayed units – approx. worth INR 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 INR 56,420 Cr.
- Kolkata has a 5% share valued at INR 17,960 Cr
Prashant Thakur, Director & Head – Research, ANAROCK Property Consultants says, “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 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.”
City-Wise Budget Segmentation
Of approx. 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 INR 40-80 lakh, followed by 32% (approx. 2,01,350 units) in the affordable housing segment (priced <INR 40 lakh). Premium homes (INR 80 lakh to INR 1.5 Cr) account for 18% (approx. 1,11,050 units). The luxury segment (units priced >INR 1.5 Cr) has just 68,300 delayed/stuck units in the top 7 cities.
- In NCR, out of the total 3,28,600 delayed/stuck units, 48% is in the mid-range segment, 31% in the affordable category, 16% in the premium segment and just 5% in the luxury segment
- MMR has approx. 1,49,620 delayed/stuck housing units as of H1 2021-end. Of this, 37% is in the affordable segment, 23% in the luxury segment, 21% in the mid-range segment, and 19% in the premium segment
- Pune has 50,130 stuck/delayed units of which 51% are in the affordable category, 32% in the mid-range segment, 10% in the premium category and 7% in the luxury segment.
- Bengaluru has approx. 41,780 stuck/delayed units of which 36% are in the premium segment, 31% in the mid-range segment, 24% in the luxury segment and just 9% in the affordable segment.
- In Kolkata, out of approx. 29,110 delayed/stuck units, 49% is in the mid-range segment, 40% in the affordable category, 8% in the premium segment and just 3% in the luxury segment
- Hyderabad has approx. 17,960 delayed/stuck homes as on H1 2021-end of which 36% is in the premium segment, 31% is in the luxury segment, 24% in mid-range and 10% in the affordable segment
- Chennai has the least delayed stock of approx. 11,430 units of which 33% is in the mid-range segment, 25% in the premium segment, 20% in the luxury segment and 22% in the affordable category.
“Previously, NCR had a 35% share of total delayed units (in 2019). However, its share now increased to 52% as several projects launched in NCR in 2014 are also included, he says. “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,” added Thakur.
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.
Also Read: Builders Can’t Sell or Advertise Flats in these Hundreds of Projects
