Second wave may delay delivery of 422,000 homes in top 7 cities
Around 422,000 homes slated for completion in India’s top seven cities by the end of this year may be delayed due to disruptions caused by various restrictions imposed to contain the second wave of the covid-19 pandemic, Anarock Property Consultants said on Tuesday.
In terms of completion of projects, the National Capital Region (NCR) would have the biggest share of nearly 28%, followed by the Mumbai Metropolitan Region (MMR) at 26%, and Pune at around 18%, Anarock said.
While last year’s strict nationwide lockdown during the first wave of covid-19 saw construction activity come to a grinding halt, the ongoing localized lockdowns and curbs look less crippling for construction activity. They, however, it may impact raw material supply chains.
Around 72% of the total homes to be delivered by the end of 2021 are already sold out. 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 this year-end.
To be sure, homebuyers’ preference remains skewed towards ready-to-move homes that mitigate construction risks and project delays.
“The tally of 422,000 homes scheduled for delivery across the top seven 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 lockdowns and restrictions in most states, construction activity has been permitted, albeit with covid-specific protocols like adequate social distancing and sanitizing measures among in-site labourers, Puri added.
In terms of price categories, of the homes expected to be delivered by 2021-end, 40%, or 169,000, units cost less than ₹40 lakh. Another 35%, or 148,000, are in the mid-segment, priced between ₹40 lakh-₹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 work has not been sharply impacted so far, many real estate developers such as Oberoi Realty Ltd and Tata Realty and Infrastructure Ltd are aiming to launch fresh projects in the second half of the year. The overall outlook for the June quarter is slow and muted as the pandemic wreaks havoc across the country.