Over 4.22 lakh homes scheduled for delivery by 2021-end may witness a delay: Report

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Reeling under the pressure of Covid-19, 4.22 lakh homes that are scheduled to be completed by 2021 across the top 7 cities may witness a delay. According to a report by Anarock,  there could be some delay due to restrictions and disruptions in the supply chain amid the second wave of Covid-19. 

Anuj Puri, chairman, Anarock Property Consultants said that the tally of 4.22 lakh homes scheduled for delivery across the top 7 cities by 2021-end must be viewed in the context of the severe second wave of  Covid-19 infections. All the top cities have been affected, and it is likely that a part of these project deliveries will be pushed to 2022.

If the fallout of the second wave of Covid-19 does not impact construction activity again, the top 7 cities will have approximately 1.18 lakh homes available for purchase by year-end. Once-bitten-twice-shy homebuyers’ preference continues to be skewed towards ready-to-move homes which mitigate construction risks and project delays. Notably, 72% of the total homes to be delivered by 2021-end are already sold out and just 28% remain unsold, according to the Anarock report.

Puri asserted, “Most developers underwent a steep learning curve since Lockdown 1.0. Since ready-to-move homes are in such high demand, many players with projects due to reach completion in  2021 will consider this as a do-or-die deadline.”

As far as housing sales are concerned, we are seeing a temporary slowdown due to the rampant spread of the coronavirus. The market will quickly regain an even keel once the vaccination drive picks up pace and the health infrastructure crunch abate, Puri said.

Future outlook

Anarock data reveals that if things go well, NCR would see the maximum completions with a nearly 28% share, followed by the Mumbai Metropolitan Region (MMR) with 26% and Pune with approximately 18%.

In terms of statistics, NCR has 1,16,730 units scheduled for completion in 2021. Of this, at least 43% are in the affordable segment, 39% in the mid-segment, and 13% in the premium segment priced within Rs 80 lakh to Rs 1.5 crore. 

Subsequently, in MMR, 1,0,9940 units are scheduled for completion during the year, of which 40%  is in the affordable segment; Pune has 74,020 units scheduled for completion anytime during 2021; Bengaluru has 56,650 units scheduled for completion in 2021 of which just 11%  is in the affordable segment and 56% is in the mid-segment.