COVID-19 stalls construction; homebuyers should expect project delays

Bengaluru: The COVID-19 lockdown has stalled construction and homebuyers should expect project delays, according to Anarock Property Consultants. More than 15.62 lakh units (launched between 2013 and 2019) are under construction in the top seven cities of the country, it said on Tuesday.

Of this, MMR (Mumbai Metropolitan Region) & NCR (National Capital Region) together comprise 57 per cent or approximately 8.90 lakh units. Pune has nearly 2.62 lakh units under construction, followed by Bengaluru with 2.02 lakh units and Kolkota with approximately 90,670 units. Chennai and Hyderabad together comprise just eight per cent (approximately 1.18 lakh units) share of overall under- construction units.

With most top cities announcing a lockdown till at least March 31, homebuyers must brace themselves for project delays, the property consultants said in a statement.

A lot is currently at stake for Indian residential real estate as cities go into complete lockdown mode to battle the spread of Covid-19.

Developers tend to schedule project launches during the auspicious festivals of Gudi Padwa, Akshaya Tritiya, Navratri and Ugadi.

The strict advisories for complete lockdown across cities will impact housing sales during the upcoming festivals, usually considered auspicious by several homebuyers to buy homes, Anarock said.

Prashant Thakur, Director & Head Research, ANAROCK Property Consultants said: Another fallout of the lockdown is that many key markets will have almost zero construction activity at the project sites.

This will further strain several developers financial health, he said.