These 7 cities have realized the maximum number of ‘stuck’ homes in the past 5 months

• The NCR and MMR regions delivered the maximum number of homes between January 2021 and May 2022.
• Both regions also account for 77% – the highest number of homes that have been delayed or frozen.
• The possible reason for the slowdown could be a liquidity crisis, lack of sales and rising input costs.

Despite the pandemic and rising input costs, developers in key real estate markets have been able to complete a record number of housing projects in the past five months. Some of these projects have stalled since the start of the pandemic.

In NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Hyderabad, Chennai, Pune and Kolkata; the number of ‘stuck’ homes has decreased by 36,830, according to data from Anarock.

“Notably, they are maintaining momentum despite significant headwinds from increased input costs, which have skyrocketed over the past five months,” said Prashant Thakur, head of research at Anarock real estate advisors.

NCR saw maximum completion, followed by MMR and Benagaluru.

Number of completed homes in 7 cities between Dec ’21-May’22

Source: ANAROCK

According to the report, about 1.49 lakh houses were completed in the past nine months between August 2021 and May 2022. NCR and MMR regions again saw the highest number of deliveries.

“The fact that demand for housing has remained strong over the past two years helps, of course. Several larger developers, as well as the SWAMIH fund and NBCC have taken over stalled/delayed stocks and are now seeing them completed,” Thakur said.

Prior to the real estate market revival – triggered by the pandemic – a large number of homes were stuck due to multiple factors such as lukewarm sales, liquidity scarcity and higher input costs that have haunted the sector for years.

All seven cities currently have 4,79,940 delayed homes valued at over ₹4,48,129 crore. NCR and MMR together account for the maximum share with 77% while the southern metros Bengaluru, Chennai and Hyderabad have only 9%. Pune has a 9% share while Kolkata only accounts for 5% in the total share.

“Chennai delivered a great completion performance with 41% of previous stalled/delayed units completed during this period. It currently has the lowest load of stuck units in the top 7 cities,” the report said.

Total stalled or delayed units in 7 cities as of May 2022

Source: ANAROCK report

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