More than 8.78 lakh residential units, which were scheduled to be delivered in 2020- 21, are likely to miss the deadline due to lockdown in the wake of the Covid-19 pandemic.
Prior to Covid-19, top seven cities of the country were supposed to see completion of over 8.78 lakh units in 2020 and 2021 combined. Of this total expected supply, nearly 4.66 lakh units were to be added in 2020 and the remaining 4.12 lakh units in 2021.
Delhi-NCR, Mumbai Metropolitan Region (MMR) and Bengaluru had completion of more than 1 lakh units each lined up in 2020. But the work has badly been disrupted due to the pandemic.
According to a study conducted by property consultants Anarock, Pune had more than 68,800 units lined up for completion, Kolkata 33,850 units & Hyderabad about 30,500 units. Chennai, on the other hand, had least pending delivery at about 24,650 units.
In the normal circumstances, the top seven cities of the country were supposed to see the delivery of about 4.66 lakh units by 2020- end. Launched after 2013, many of the projects were in the final leg of completion, says the study, adding “with almost zero construction activity in last few months due to the lockdown, the completion deadlines for almost all these projects has got extended”.
With most state RERA (Real Estate Regulatory Authority) giving developers a six-month extension on deadlines, homebuyers’ wait can become longer. However, the wait could run into several additional months for well-funded projects, and as much as two years for others.
The year 2021 was to see completion of nearly 4.12 lakh units across top seven cities of India — 12% lower than in 2020. In 2020 and 2021 combined, NCR has the maximum units to be delivered at about 2.40 lakh. Most of these projects are likely to be delayed.
Talking about the manpower issue due to migration, the study said unless labour shortage is addressed immediately, project deliveries will stutter going forward.
Chairman of Anarock Anuj Puri said: “Homebuyers will have to adjust to new realities. As many as 4.66 lakh units were slated to be delivered in 2020 and another 4.12 lakh in 2021. Maximum completions (in both years) were to happen in NCR (about 2.40 lakh units). This region is set to witness more project delays over and above the backlog of over 2 lakh units already delayed in the region from before.”
He said the government must intervene to address multiple challenges including labour shortage in top cities. “Even if developers have the financial strength, it will still take a while for most of them to resume construction because lakhs of labourers have left cities and migrated back to their villages. Moreover, many of the top cities are still grappling with the virus,” he pointed out.