News: 4.66 lakh homes scheduled for 2020 delivery may miss deadline: Anarock-23-06-2020

https://www.thehindubusinessline.com/news/real-estate/466-lakh-homes-scheduled-for-2020-delivery-may-miss-deadline-anarock/article31896793.ece

 

Homebuyers’ wait to get longer as labour shortage hits realty

The Covid-19 induced lockdown and disruption in construction activity may delay the delivery of about 4.6 lakh homes across the top seven cities in the country.

Launched after 2013, many of the projects were in the final leg of completion and these 4.66 lakh units were to be delivered by end-2020. With almost nil construction activity in the last few months due to the lockdown, the completion deadlines for almost all these projects have got extended.

Most State RERAs (Real Estate Regulatory Authorities) have already given a six-month extension to developers on previously committed timelines. However, homebuyers’ 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 the top seven cities — 12 per cent lower than in 2020. Most of these projects will probably also get delayed.

New realities

Anuj Puri, Chairman, Anarock Property Consultants, says, “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 (approximately 2.40 lakh units). This region is set to witness more project delays over and above the backlog of over two lakh units already delayed in the region from before.”

“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,” Puri said in a statement.

Prior to Covid-19, the top seven cities were 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.

NCR was to see maximum completions in both years of about 2.40 lakh units. Of this, 1.01 lakh units were to come up in 2020 and another 1.39 lakh units in 2021.

MMR (Mumbai Metropolitan Region) was second with nearly 2.10 lakh units expected to be delivered in two years — 1.07 lakh units in 2020 and 1.03 lakh units in 2021.

Bengaluru was expected to see delivery of nearly 1.51 lakh units in 2020 and 2021 — 1.01 lakh units this year and nearly 50,000 units in the next.

Pune was to see completion of nearly 1.36 lakh units in both years — 69,000 in 2020 and 67,000 in 2021. Kolkata was next with nearly 59,000 units meant to be delivered in two years — 33,900 in 2020 and nearly 25,100 in 2021. And Hyderabad was to see completion of more than 45,200 units in both years — 30,500 in 2020 and 14,700 in 2021.

Chennai had the least completions in both years — about 37,000 units. Of this, 24,650 units were to be completed this year and 12,520 units in 2021.

NCR, MMR and Bengaluru had more than one lakh units each lined up for completion in 2020 — and then Covid struck.

Pune had 68,800 units lined up for completion, Kolkata 33,850 and Hyderabad nearly 30,500; Chennai had least pending delivery of about 24,650 units

With most State RERAs giving developers a six-month extension on deadlines, homebuyers’ wait will get longer

Unless labour shortage is addressed immediately, project deliveries will stutter going forward.