Around 220 projects in top 7 cities with 1.74 lakh homes are stalled: Latest Report.

By Abhay Shah, Realty Quarter

The landmark verdict of the Supreme Court on Amrapali developers lifted the hopes of house buyers who are futilely waiting for their houses to be delivered. While similar developments are waiting for about other stuck projects, the Apex Court has established a precedent with a resounding message – compliance or perish.

ANAROCK study reports explain that there are approximately 220 projects in the top seven cities, with 1.74 lakh homes which are completely stalled. These projects, which were launched either in 2013 or earlier, have no construction activity going on. It is estimated that the overall cost of all stalled units is more than Rs 177,400 crore. Most of these projects are stopped because of either liquidity problems or litigation.

Close to 66% of such stopped projects were already sold to buyers who have been left in the lurch – at the mercy of either the concerned developers or the law of the land. The net worth of these sold units is estimated at around Rs 111,100 crore.

Among these markets, the National Capital Region (NCR) has the largest stacked of stalled units with a market of 1.18 lakh homes or 68% of the total stacked stock spread over 67 projects of a total value of Rs 82,200 crore. Almost 69% or 83,470 units of this have been sold. Approximately 98% of the stuck projects at NCR are situated in Noida and Greater Noida, while Ghaziabad, Gurugram has a smaller inventory.

The Mumbai Metropolitan Region (MMR) will next take place, with almost 38,060 units stalled in the city. In this area, however, the amount of stuck unit projects is greater than in NCR. The stalled units of MMR covers 89 projects compared with 67 projects in NCR. Interestingly, in terms of the value of the stalled units, MMR is quite close to NCR, with stalled units worth over Rs 80,200 crore as against Rs 82200 crore in NCR, ANAROCK data showed.

In spite of the considerable parity in the number of stalled units between the two major areas, this distinction is minimized in astronomical estate prices in the MMR. Pune is followed by nearly 28 projects, including 9,650 units costing Rs 7,000 crore completely stalled, followed by Hyderabad with nearly 4,150 units of Rs 3,600 crore stuck. The information showed that Bengaluru has 26 projects, consisting of 3870 stuck units of Rs 4,200 crore.

With so many projects stuck in all the cities, the Supreme Court’s action in the Amrapali case now gives affected house buyers a light of hope.