Homebuyers who booked flats in housing projects in the Noida-Greater Noida property market are worst affected, with over 1.65 lakh flats worth Rs1.18 lakh crore currently stalled or significantly delayed in these two cities, according to property consultant Anarock.
According to the Anarock data, 4,79,940 units worth Rs4,48,129 crore are "stalled or heavily delayed" across these seven cities as of May 31, 2020. Out of this, Delhi-NCR alone accounts for a whopping 50 with 2,40,610 stalled or delayed units worth Rs1,81,410 crore.
Noida and Greater Noida region accounts for nearly 70% of total stuck/delayed units while Gurugram's share is only 13%. In Noida and Greater Noida, there are 1,65,348 units worth Rs1,18,578 crore stalled or delayed units.
While Gurugram has 30,733 units worth Rs44,455 crore stuck/delayed, the Ghaziabad market has 22,128 such units valuing Rs9,254 crore. Delhi, Faridabad, Dharuhera and Bhiwadi together have 22,401 stuck/delayed units worth Rs9,124 crore.
"Project delays have been the bane of the Indian real estate sector over the last decade, particularly in NCR. Even the implementation of RERA (realty law) had only a little impact on this," Anarock Senior Director & Head - Research Prashant Thakur said. Among other factors, he said the liquidity crunch threw up roadblocks for many developers in the NCR.
The government's Rs25,000 crore stress fund, which was launched in 2019 and called as SWAMIH, has proved to be effective in reviving many stuck projects, he added. "Needless to say, real estate activity in Greater Noida earlier boomed on the pretext of boosted connectivity to Yamuna Expressway which passes through this region. Builders cashed on the connectivity prospects and launched innumerable projects over the years. Builders also launched projects in Greater Noida West which are now stuck under various stages of non-completion," Thakur said.
There are many other builders who have defaulted on their promises to deliver their projects on time to customers, who have already paid almost the entire purchase price. Not only that, they are also paying interest on home loans with no signs of any quick resolutions.
Against defaulting builders, homebuyers have approached various courts as well as the National Company Law Tribunal (NCLT) to secure their investments.
After the Delhi-NCR market, the MMR has the second-highest stalled or delayed units. Southern cities Bengaluru, Chennai, and Hyderabad have just 9%.Pune has about 9% share, while Kolkata accounts for 5%.There are 1,28,870 units worth Rs 1,84,226 crore in the MMR that are stuck/delayed. Bengaluru has 26,030 stuck/delayed units worth Rs 28,072 crore. Hyderabad has 11,450 stuck/delayed units worth Rs 11,310 crore.In Chennai, 5,190 units worth Rs 3,731 crore are currently stuck or significantly delayed. Pune has 44,250 units worth about Rs 27,533 crore that are stuck/delayed, while Kolkata has 23,540 such units valuing Rs 11,847 crore.
