Over 4.22 lakh homes in top 7 cities to be completed in 2021 may face delay

• Of total ~4.22 lakh homes expected to be completed or delivered by year-end in top 7 cities, at least 40% are in affordable segment priced <INR 40 lakh, 35% in mid segment priced b/w INR 40 lakh to INR 80 lakh; just 9% in luxury priced >INR 1.5 Cr
• Of the total homes slated for delivery by 2021 year-end, at least 72% are already sold
• At least 28% of the total units to be ready by year-end are in NCR, followed by 26% in MMR, 18% in Pune
• 1st lockdown saw construction activity come to a complete halt; with no outright ban, current localized lockdowns & restrictions less crippling for construction but disruptions in raw materials supply chain may cause some delay

Latest ANAROCK data reveals that over 4.22 lakh homes are scheduled to be completed by 2021-end across the top 7 cities. Of this, NCR would see the maximum completions with a nearly 28% share, followed by MMR with 26% and Pune with approx. 18%. There could be some delay due to restrictions and disruptions in the supply chain amid the second COVID-19 wave.

Notably, 72% of the total homes to be completed or delivered by 2021-end are already sold out (just 28% remain unsold) in top 7 cities. If the fallout of the second COVID-19 wave does not impact construction activity again, the top 7 cities will have approx. 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.

In terms of budget categories – of over 4.22 lakh homes to be delivered by 2021-end, 40% (approx. 1.69 lakh units if completed) are in the affordable segment priced <INR 40 lakh. 35% (approx. 1.48 lakh units if completed) are in the mid-segment priced between INR 40 lakh to INR 80 lakh.

Anuj Puri, Chairman – ANAROCK Property Consultants says, “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. Amid the localized lockdowns and restrictions in most states, construction activities are permitted – albeit mandating COVID-19-specific protocols like adequate social distancing and sanitizing measures among in-situ labourers.”

Also, most developers underwent a steep learning curve since Lockdown 1.0. Since ready 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 is concerned, we are seeing a temporary slowdown due to the rampant spread of the coronavirus,” says Puri. “The market will quickly regain an even keel once the vaccination drive picks up pace and the health infrastructure crunch abates.”

Total homes completed in top 7 cities

Category wise completion report

• 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 premium segment priced within INR 80 lakh to INR 1.5 Cr. Just 5% is within the luxury segment (>INR 1.5 Cr)
• In MMR, 1,0,9940 units are scheduled for completion during the year, of which 40% is in affordable segment, 24% in the mid segment, 18% in premium, and 17% in the luxury category.
• Pune has 74,020 units scheduled for completion anytime during 2021. Of this supply, at least 59% is in the affordable segment, 30% in the mid segment, 9% in premium, and just 2% in the luxury segment.
• In Bengaluru, 56,650 units are scheduled for completion in 2021 of which just 11% is in affordable segment, 56% is in the mid segment, 23% in the premium category and 9% in the luxury category.
• Kolkata has 27,470 units scheduled for completion in 2021. Of this, at least 65% is in the affordable segment, 26% in the mid segment, 5% in premium, and just 3% in the luxury segment.
• In Chennai, 21,830 units are scheduled for completion during the year. Of this, 34% is in the affordable segment, 47% in the mid segment, 14% in the premium category, and just 5% in the luxury category.
• Hyderabad has 15,860 units scheduled for completion during 2021. Of this, just 6% is in the affordable segment, 37% in the mid segment and 43% in the premium segment. At least 14% is in the luxury segment.

Also Read: 2nd Covid Wave’s Impact on Housing Demand and Prices