Housing Units Worth Rs 3 Lakh Crore Lag Delivery Deadlines In 7 Cities: PropEquity

More than 4.65 lakh housing units across the country are lagging their delivery deadlines, according to a report by property consultant PropEquity. Although the country's real estate or property market "may be witnessing green shoots of recovery in select micro markets", the projects - 3.97 lakh of them in seven tier 1 regions - are "significantly behind their delivery deadlines with daunting construction delays". PropEquity has cited a variety of reasons such as financial constraints, execution challenges, over ambitious launches by developers and slowing sales behind these project delays..Here are five things pointed out by the property consultant in its report:.1. Total value of projects that are facing construction delays is Rs 3.3 lakh crore. That includes projects in tier 1 locations Mumbai Metro Region, National Capital Region, Bengaluru, Chennai, Hyderabad, Pune and Kolkata. The launch value of the projects in the seven cities is estimated at Rs 2.56 lakh crore..table { border-top: solid 1px #ccc; border-left: solid 1px #ccc; border-right: solid 1px #ccc; font-size: 16px; } table th { background-color: #f5f5f5; padding: 5px 10px; border-bottom: solid 1px #ccc; border-right: solid 1px #ccc; } table td { border-bottom: solid 1px #ccc; border-right: solid 1px #ccc; padding: 5px 10px; line-height: 18px; } table td:last-child, table th:last-child { border-right: none; } /*Media Query start*/ @media only screen and (max-width: 760px), (min-device-width: 768px) and (max-device-width: 1024px) { /* Force table to not be like tables anymore */ table, thead, tbody, th, td, tr { font-size: 14px; } .scroll{ overflow:scroll; } } /* Smartphones (portrait and landscape) ----------- */ @media only screen and (min-device-width : 320px) and (max-device-width : 480px) { body { padding: 0; margin: 0; } table, thead, tbody, th, td, tr { font-size: 14px; } table th { padding: 4px; } table td { padding: 4px; } table th:nth-child(1), table td:nth-child(1){ } } /* iPads (portrait and landscape) ----------- */ @media only screen and (min-device-width: 768px) and (max-device-width: 1024px) { body { width: 495px; } } /*Media Query END*/ . Housing Projects Stuck / On Hold Region No. of projects Launched square feet in million Launched units Present value in crore rupees Launch value in crore rupees MMR 496 100.57 1,05,747 1,12,786 96,740 NCR 305 260.32 1,80,846 1,22,521 1,01,179 Bengaluru 222 56.74 38,242 26,454 23,911 Chennai 97 22.49 20,847 9,511 8,514 Hyderabad 51 23.06 13,710 7,778 7,085 Pune 148 24.13 22,517 14,111 13,166 Kolkata 65 17.73 15,552 6,175 5,511 Tier 2 Cities 303 93.56 68,094 33,512 30,120 Grand Total 1687 598.59 4,65,555 3,32,848 2,86,226 (Source: PropEquity) .2. In the national capital region, the number of such housing units has been estimated at over 1.8 lakh. These housing units are estimated to be worth Rs 1.22 lakh crore..3. "Although the markets are facing significant execution delays, we do expect the reputed developers to perform well. We also anticipate that the resolution to this difficult scenario will occur in the form of consolidation that will be led by the larger and more capable developers who have the construction and execution capability to meet their promises," said Samir Jasuja, founder and MD, PropEquity..4. Kolkata and Hyderabad have been "relatively insulated" compared with other tier 1 regions. Both these cities were able to sell less than half of these projects..5. As the real estate market gets accustomed to reforms such as GST and RERA (Real Estate Regulation and Development Act), absorption for ready-to-move and nearing completion projects will witness a preference, added Mr Jasuja. "Affordable and mid-income segment is expected to further grow due to favourable government policies."

Housing Units Worth Rs 3 Lakh Crore Lag Delivery Deadlines In 7 Cities: PropEquity

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