Coronavirus lockdown will delay construction in top 7 cities, hit housing sales: Report
Prashant Thakur, director and head of research at ANAROCK Property Consultants, said of the total 15.62 lakh units under construction, nearly 57 per cent or 8.9 lakh units are in MMR and NCR.Updated: Mar 25, 2020 21:02 IST
The lockdown to battle the spread of coronavirus will largely affect housing sales and also lead to a delay in completion of real estate projects, according to a report.
More than 15.62 lakh units, launched between 2013 and 2019, are under construction in the top 7 cities - Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, Bengaluru, Chennai, Hyderabad and Kolkata, ANAROCK Property Consultant said.
Prashant Thakur, director and head of research at ANAROCK Property Consultants, said of the total 15.62 lakh units under construction, nearly 57 per cent or 8.9 lakh units are in MMR and NCR.
“Both these regions already have a backlog of lakhs stalled units. With construction activity almost coming to a standstill, homebuyers will have to brace themselves for another wave of delayed project deliveries,” Thakur added.
The strict advisories for complete lockdown across the Indian cities due to coronavirus will also impact housing sales during the upcoming festivals such as Gudi Padwa, Akshaya Tritiya, Navratri and Ugadi which are usually considered auspicious by several homebuyers to purchase homes.
“Another fallout of the lockdown is that many key markets will have almost zero construction activity at the project sites. This will further strain several developers’ financial health,” Thakur said.
According to the data by ANAROCK, MMR has the highest under construction stock with around 4.65 lakh units. This is 30 per cent of the overall under construction stock across the top 7 cities.
NCR is right next with 27 per cent or over 4.25 lakh units in various stages of construction.
Pune has about 2.62 lakh units in different stages of construction. It is followed by Bengaluru with around 2.02 lakh units and Kolkata with about 90,670 units under construction.
Hyderabad has about 64,250 under-construction units, while Chennai with around 54,200 units has the least stock. Both these cities together comprise 8 per cent share of overall under-construction units, the report said.