1 min read.Updated: 02 Aug 2021, 12:49 PM ISTLivemint
While many developers lack the funds to complete the project, some have siphoned off the money to complete other projects. The liquidity crisis caused by the Lehman fiasco and covid-19 has worsened the situation
NEW DELHI: Around 6.26 lakh residential units have been delayed whereas 1.74 lakh units worth ₹1.40 lakh crore are completely stuck, according to a report by Anarock Research. Launched in 2014 or before, the total value of the currently stuck or delayed housing units exceeds ₹5.05 lakh crore.
While many developers lack the funds to complete the project, some have siphoned off money to complete other projects. The liquidity crisis caused by the Lehman fiasco and covid-19 worsened the situation. Majority of these houses fall in ₹80 lakh price category.
The National Capital Region (NCR) has the maximum number of stalled projects, i.e. 1.13 lakh units worth ₹86,463 crore followed by Mumbai Metropolitan Region (MMR) with 41,730 units worth ₹42,417 crore. Pune accounts for 8% of the total stalled cases.
Prashant Thakur, director and 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."
In 2019, NCR had a 35% share of total delayed units that increased to 52% after the inclusion of projects launched in 2014, he said. “There are many possible reasons, including covid-19, funding issues, and litigation. The decrease in delayed units in Pune and MMR is remarkable - from 16% and 36% by 2019-end to 8% and 24% (respectively) by H1 2021-end," he added.