Most delayed residential units in Delhi-NCR, finds realty report
The report says that 5,61,100 housing units worth rupees 4.5 lakh crore is stuck in various stages of non-completion across the seven major residential markets — NCR, MMR, Chennai, Kolkata, Bengaluru, Hyderabad and Pune — in the country.
The National Capital Region (NCR) has the highest number of delayed housing units in the country, followed by Mumbai Metropolitan Region (MMR), says a real estate report released on Tuesday. Out of the total stuck apartments in NCR, Gurugram accounts for more than 23,000 units, the report said.
These delayed apartments, which were either launched in 2013 or before that, are proving a major drag on the entire realty sector, the report by real estate consultancy Anarock said.
According to the report, the number of apartments, which are delayed in NCR, stands at over 2 lakh while the number is close to 2 lakh in MMR. Overall, the report says that 5,61,100 housing units worth rupees 4.5 lakh crore is stuck in various stages of non-completion across the seven major residential markets — NCR, MMR, Chennai, Kolkata, Bengaluru, Hyderabad and Pune — in the country.
As per the report that takes five-year period (2013-2018) into account, of the total delayed units in NCR, the maximum are in Greater Noida (1,04,912 units), followed by Noida (44,082), Ghaziabad (24,728) and Gurugram (23,287).
A developer has to stipulate the time period in which he has to deliver the apartment and normally it is three years from the launch of the project, plus six months as margin for delay. Any project, which is not delivered in this period, is considered as delayed, say experts.
After Delhi-NCR, MMR has the highest number of delayed projects with 1,92,100 residential units stuck in various stages of construction.
Anuj Puri, chairman, Anarock Property Consultants, said that Greater Noida and Greater Noida West lead the pack as large number of builders launched projects in the area cashing in on improved connectivity with the launch of Yamuna Expressway, leading to oversupply. “These projects were launched without a proper demand and supply analysis and now these are stuck. A major issue is that some of the developers lacked the will to complete the project and preferred fund diversion, the tightening credit crunch has also been a major problem. It has become a ‘chicken and egg’ situation – buyers have understandably stopped releasing funds to developers, who claim they have no funds to complete the projects,” said Puri.
Another worrying aspect of this conundrum in the real estate sector is that despite setting up a powerful regulatory mechanism in the form of Real Estate Regulatory Authority (RERA), the results on the ground are not quite visible. The report says that a large number of homebuyers have been left in the lurch because a majority of these stuck projects don’t fall in the ambit of RERA, as they were launched much before the Act became a reality.
Homebuyers in Gurugram, who have often approached the regulatory authority also allege that state governments have diluted the Act while framing its rules, forcing buyers to approach the court for getting relief, which is a painful and long process.
The experts say that one possible solution out of this mess at least in NCR could be to bring government agencies like National Building Construction Corporation (NBCC) and others to complete the projects.
“If the government agencies build stalled projects, there would be generation of employment and demand for steel and cement. These stalled projects also have large chunks of land and other assets, which can be sold to generate funds,” said Sanjay Sharma, a Gurugram-based property consultant
