By Dominick Rodrigues

 Mumbai, Jan 12: Construction activity in India was brought down to its knees in 2020 by Covid-19, but is now appearing upbeat about progressing towards development with “over 73,560 ‘Stuck’ Homes completed in 2020” and the maximum occurring in the Metropolitan Mumbai Region (MMR).

 “As on 2019-end, 1,322 projects comprising ~5.76 lakh units (launched in 2013 or before) were stuck in various stages of (non) completion in top 7 cities and, by 2020-end, this reduced to 1,132 projects comprising ~5.02 lakh units. The total value of present stuck/delayed housing stock is more than Rs 4.07 lakh Crore,” said Anuj Puri, Chairman – ANAROCK Property Consultants.

 “Despite all-round upheaval by COVID-19 in 2020, developers stayed on the completion track amid rising demand for ready homes. The MMR witnessed maximum completions of 84 stuck projects comprising ~29,750 units in 2020 and currently has ~1.80 lakh stuck/delayed units worth over Rs 2,02,145 crore.

NCR – which earlier held 2nd place in 2019 after MMR – now has maximum stuck housing units among all cities at ~1.90 lakh units worth approximately Rs 1,19,290 crore.”

 “NCR & MMR together currently hold 74% share of stuck/delayed units, while South Indian cities (Bengaluru, Chennai & Hyderabad) hold just 8% overall share.

Chennai has the least number of stuck projects among top 7 cities – about 12 projects with approx. 5,940 units.”

While some months of 2020 witnessed COVID-19 bringing construction activity down to its knees, followed by restricted on-site activity, as many as 190 stuck/delayed housing projects —  accounting for over ~73,560 units — were completed in 2020, according to a recent ANAROCK study.

 As of 2020-end, altogether 1,132 projects accounting for approximately 5.02 lakh units (launched in 2013 or before) are stuck in various stages of (non) completion in the top 7 cities. Towards 2019-end, there were as many as 1,322 stuck projects comprising approx. 5.76 lakh units. The total value of the current stuck or delayed housing stock exceeds Rs 4.07 lakh crores.

 Describing project delays as the ‘bane’ of the Indian real estate sector over the last decade, Anuj Puri, Chairman – ANAROCK Property Consultants noted that even the implementation of RERA had only a little impact on this. “Among other factors, the liquidity crunch threw up roadblocks for developers, which is why the government intervened with the creation of the Alternate Investment Fund (AIF) in late 2019 with a corpus of Rs 25,000 crore. This last-mile capitalization mechanism couched in the SWAMIH fund has proved to be effective in getting stuck projects going again.”

 “The government and RBI’s liquidity-generation initiatives in 2020 also helped. 190 projects with over 73,560 units — which can finally be handed over to their purchasers or marketed as ‘ready-to-move’ options getting completed in the year — is especially remarkable considering the backdrop of the unique COVID-19 impact on construction activity,” he said.

MMR(Mumbai Metropolitan Region) saw the maximum completions – of 84 stuck projects comprising ~29,750 units – in 2020. Currently, the region has 500 stuck/delayed projects comprising ~1.80 lakh units worth over Rs 2,02,145 crore. Towards 2019-end, MMR had approx. 584 stuck or delayed projects with 2.10 lakh units worth Rs 2,34,654 crore.  NCR, which had occupied the 2nd spot after MMR in 2019, now has the maximum ‘stuck’ housing stock among all cities with ~1.90 lakh units worth approx. Rs 1,19,290 crore. Towards 2019-end, the region had 2 lakh stuck or delayed units worth approx. Rs 1,26,040 Cr.

Pune witnessed 44 previously stuck/delayed projects (of approx. 14,520 units) get completed in 2020. By 2020-end, Pune had nearly 230 stuck projects consisting of ~80,480 units worth nearly Rs 49,667 crore while, by 2019-end, it had 274 stuck projects with approx. 95,000 units worth ~Rs 57,000 crore.

 Bengaluru saw 20 stuck projects comprising over 9,150 units get completed in 2020. Currently, there are 60 stuck/delayed projects comprising ~29,850 units worth over Rs 22,276 crore.  By 2019-end, the city had approx. 80 such projects with 39,000 units worth Rs 28,080 Cr.

 Hyderabad saw completion of 6 projects comprising ~2,380 units in 2020. Presently, the city has 16 stuck/delayed projects comprising ~6,520 units worth over Rs 4,305 crore. By 2019-end, the city had approx. 22 stuck/delayed projects with 8,900 units worth Rs 5,467 crore.

 Kolkata saw 10 such projects comprising 3,830 units get completed in 2020. Currently, the city has 22 stuck/delayed projects comprising ~9,180 units worth over Rs 5,436 crore. By 2019-end, the city had approx. 32 stuck/delayed projects with 13,000 units worth Rs 7,327 Cr.

 Chennai saw 8 projects comprising 4,060 units get completed in 2020. Currently, the city has the least burden of stuck projects among the top 7 cities, with approx. 12 stuck/delayed projects comprising ~5,940 units worth over Rs 3,886 crore. By 2019-end, the city had approx. 20 projects with 10,000 units worth Rs 6,493 crore.

 In the present end-use driven residential market environment, delivery of RTM inventory was the veritable ‘Holy Grail’ in 2020, and will continue to be the single-most impactful factor throughout 2021.

 (Note: Stuck/delayed projects include all projects that were launched in 2013 or before and are yet to be completed. These are classified as ‘highly delayed’ units. It also includes completely stalled projects.)