Home construction picks up in top seven cities

The pace of construction in the residential sector appears to have picked up with the seven major cities – Delhi-NCR, Mumbai Metropolitan Region (MMR), Bangalore, Hyderabad, Pune, Chennai and Kolkata – reducing their burden of blocked and delayed homes. As of May 31, 2022, there were approximately 479,940 units worth over Rs 4.48 trillion that were launched in 2014 or earlier and remained stuck in various stages of construction in these cities. This is down from 517,000 units worth around Rs 4.84 trillion at the end of December 31, 2021.

Data from ANAROCK shows that up to 36,830 languishing homes were completed in seven cities between January and May 2022, leading to a reduction in stalled and delayed units. The number is even lower from August 2021, when there were 638,000 units stalled/delayed, meaning 149,000 units were completed in the nine months to May 2022. In terms of share, NCR and MMR together hold a majority share of 77% in the stalled or delayed projects, while South Bengaluru, Chennai and Hyderabad metros have only 9%. Pune has a share of nearly 9%, while Kolkata accounts for a miniscule 5% of the overall share.

Prashant Thakur, Senior Director and Head (Research) of ANAROCK, said, “What’s remarkable is that the developers are keeping pace despite considerable headwinds from rising input costs. The fact that housing demand has remained strong over the past two years obviously helps. Several large developers as well as the SWAMIH fund and the NBCC have resumed blocked/delayed inventories and are seeing them end.

With nearly 16,750 units, NCR has seen the highest number of stranded units completed – from 257,360 in December 2021 to 240,610 by the end of May 2022. Currently, NCR’s cumulative burden of stranded units exceeds 1, 81 trillion rupees, down from 1.94 trillion rupees.

MMR lags far behind with 129,000 blocked/delayed homes worth around Rs 1.84 trillion. As of December 2021, the region had around 134,000 languishing units worth almost Rs 1.92 trillion. There were 5,300 units completed during this period.