Completion of 422,000 homes may get delayed by second wave
Premium- In terms of completions, National Capital Region would see the maximum with a nearly 28% share, followed by Mumbai Metropolitan Region with 26% and Pune with around 18%
BENGALURU : Around 422,000 residential units scheduled to be completed in the top seven cities may face some delay due to restrictions and disruptions owing to the second wave of the covid-19 pandemic, new data from Anarock Property Consultants showed.
In terms of completions, National Capital Region (NCR) would see the maximum with a nearly 28% share, followed by Mumbai Metropolitan Region (MMR) with 26% and Pune with around 18%.
MORE FROM THIS SECTIONSee All
Premium Premium 'Corona curfew' extended in Madhya Pradesh. District-wise details here
1 min read . 01:36 PM ISTWhile the lockdown of 2020 saw construction activity coming to a complete halt, the current localized lockdowns and restrictions seem less crippling for construction but disruptions in raw materials supply chain may cause delay.
Around 72% of the total homes to be delivered by 2021-end are already sold out, with 28% remaining unsold. If the fallout of the second wave does not impact construction activity again, the top cities will have 118,000 homes available for purchase by year-end.
To be sure, homebuyers' preference continues to be skewed towards ready-to-move homes which mitigate construction risks and project delays.
"The tally of 4.22 lakh homes scheduled for delivery across the top 7 cities by 2021-end must, however, be viewed in context with 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. That said, many will see completion one way or the other," said Anuj Puri, chairman, Anarock.
Amid the localized lockdowns and restrictions in most states, construction activities are permitted, albeit mandating covid-specific protocols such as adequate social distancing and sanitizing measures among in-situ labourers, Puri added.
In terms of price categories, of the homes expected to be delivered by 2021-end, 40% or 169,000 units if completed are priced less than ₹40 lakh. Another 35% or 148,000 would be in the mid-segment priced between ₹40 lakh and ₹80 lakh.
"As far as housing sales is concerned, we are seeing a temporary slowdown due to the rampant spread of the coronavirus," said Puri.
Though construction has not been sharply impacted thus far, many developers such as Oberoi Realty Ltd and Tata Realty and Infrastructure Ltd (TRIL) are aiming to launch fresh projects in the second half of the year. The overall outlook for the April-June quarter is slow and muted as the pandemic wreaks havoc across the country.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!