The emergence of Covid-19 in the country is likely to push the delivery of at least 4.66 lakh under construction units to 2020-end.
"Prior to COVID-19, the top 7 cities were to see completion of over 8.78 lakh units in 2020 and 2021 combined. Of this total expected supply, nearly 4.66 lakh units were to be added in 2020 and the remaining 4.12 lakh units in 2021," said the Anarock report.
Several of these projects were launched after 2013, and many were in the final leg of completion for a delivery in 2020. With the lockdown in place several such projects have received extensions of at least 6 months by respective state RERA (Real Estate Regulation Act).
The study finds that homebuyers may have to wait for a few more months for well-funded projects. On other projects, the waiting time could be as hig as 2 years.
2021 was to see completion of nearly 4.12 lakh units across the top 7 cities – 12% lower than in 2020. "Most of these projects will probably also get delayed," said the report.
Here's a break-up of the cities and units likely to face a delay in delivery for 2020.
•NCR: 1.01 lakh units
•MMR: 1.07 lakh units
•Bengaluru: 1.01 lakh units
•Pune: 69,000 units
Anuj Puri, Chairman – ANAROCK Property Consultants said, "Homebuyers will have to adjust to new realities. As many as 4.66 lakh units were slated to be delivered in 2020 and another 4.12 lakh in 2021. Maximum completions (in both years) were to happen in NCR (approx. 2.40 lakh units). This region is set to witness more project delays over and above the backlog of over 2 lakh units already delayed in the region from before."
"The Government must intervene to address multiple challenges including labour shortage in top cities. Even if developers have the financial strength, it will still take a while for most of them to resume construction because lakhs of labourers have left cities and migrated back to their villages. Moreover, many of the top cities are still grappling with the virus," he added.
A delay in project deliveries is likely to add to consumers woes as well as realtors who've been demanding relief measures to tackle tepid demand and loss of business during lockdown. Demand for a relief by several sector representatives is yet to be answered, however, the big advice is to focus on "Selling".
Minister for MSME & Surface Transportation - Nitin Gadkari as well as Commerce & Railways Minister - Piyush Goyal had previously advised realtors to sell their inventories than building a pile of NPAs.