With the coronavirus outbreak, almost five lakhs residential projects in the top seven cities include Hyderabad, NCR, MMR, Bengaluru, Chennai, Pune, and Kolkata, were to be delivered to their buyers by 2020 have been delayed.
COVID 19 Impact Stalled Projects Construction
It is expected that approximately 4.66 lakh units that were to be delivered to the top 7 cities by 2020-end have been delayed due to the pandemic crisis. Many of the projects in Hyderabad launched after 2013 were on the final stage of completion. Owing to the lockdown, the completion deadlines for almost all these projects have been prolonged with almost zero construction activity over the last few months.
Recently the state RERA authorities have given a six months extension to developers on previously committed timeline. However, homebuyers wait could run into several additional months for well-funded projects and required to adapt for new realities. A total of 4.66 lakh units were slated to be delivered in 2020 and another 4.12 lakh in 2021.
The Government has introduced several special measures to address multiple challenges, including a labor shortage in Hyderabad and other cities. Even if developers have the financial strength, it will take some time for most of them to resume construction because lakhs of laborers have left cities and migrated back to their villages. Moreover, many of the cities are still fighting with the virus.
Expected Projects Completion in 2020 - 2021
- Hyderabad was to see the completion of more than 45200 units – in 2020 30,500 units and 14,700 units in 2021.
- NCR was to see maximum completions of about 2.40 lakh units. Of this, 1.01 lakh units were to come up in 2020 and 1.39 lakh units in 2021.
- MMR with nearly 2.10 lakh units expected to be delivered – 1.07 lakh units in 2020 and approximately 1.03 lakh units in 2021.
- Bengaluru was expected to see the delivery of nearly 1.51 lakh units. This year the delivery of 1.01 lakh units while in the next year, it was just half at nearly 50,000 units.
- Pune was to see the completion of almost 1.36 lakh units – 69,000 in 2020 and 67,000 in 2021.
- Kolkata was next with nearly 59,000 units meant to be delivered – 33,900 units in 2020 and almost 25,100 units in 2021.
- Chennai is expected to deliver about 37,000 units. Of this, 24,650 units were to complete in 2020, while in 2021 12,520 units.
However, the pro-realty measures announced by the Government like in-situ construction, smooth supply of construction materials, etc. help to complete the construction of projects which would boost the confidence of buyers in the real estate sector.
By: Shailaja K