Anarock estimates of the completely stuck or heavily delayed projects in the region, around 75-80% have already been sold to home buyers. The consultancy states that around 20% of the units in the category are completely stuck, of which around half have been sold to the home buyers. Around half of the heavily delayed or completely stuck projects are in the affordable price segment.
Though third across the country, Pune’s amount and value of stalled housing units are dwarfed by that of the NCR that takes a 66% share worth around Rs 86,000 crores. The next biggest share of the stalled project market is Mumbai, with a 24% share worth around Rs 42,000 crores. The Anarock analysis finds no stalled units in the Chennai market, while Kolkata has an estimated 150 such units.
Stalled projects across the country form around 28% of the total heavily delayed ones launched in 2014 or before, with funds crunch being the primary reason for the developers failing to deliver on time. Another reason for the delay is litigation regarding land.
Analysts and industry players say strains due to demonetization and Goods and Services Tax and the Covid-19 pandemic are also to blame, besides many developers failing to fulfil regulations under the Real Estate (Regulation and Development) Act.
“Most of the projects are stuck on account of the developers running out of capital to complete the project. RERA has brought in a mechanism for the funds from the project for further use. This ensures funds do not get diverted as used to be the practice prior to the introduction of RERA,” said Rohit Gera, managing director of Gera Developments.
“If the developer is unable to complete the projects, the only way to get those completed is by the flat buyers engaging other agencies at their cost,” Gera added.