According to Anuj Puri, Chairman, Anarock Group, nearly 1.74 lakh homes across 220 projects are stalled in the top 7 cities due to funding issues or some litigations. The total value of these projects is estimated to be more than INR 1.77 lakh crore.
“2019 has been a mixed year for the Indian real estate sector. The housing market has struggled with the liquidity crisis that struck at the very foundations of the industry, and it has been limping along ever since. Demand has been sluggish; builders are playing it safe as inventories have remained stationary,” says Puri.
Of the estimated 2.37 lakh new unit launches in 2019 in the top seven cities, nearly 40% or approximately 92,000 units were in the affordable segment, followed by mid-segment with a 33% share. The luxury and ultra-luxury segments accounted for the least share with 10% (approx. 23,000 new units).
In 2019, the housing sales stood at 2.61 lakh units, recording a yearly rise of 5%. Rising demand for ready properties or those nearing completion also helped the unsold stock across the cities to decline by over 4% in a year – from 6.73 lakh units in 2018 to 6.48 lakh units by the end of 2019. Nearly 1.74 lakh homes across 220 projects are stalled in the top 7 cities due to funding issues or some litigations. The total value of these projects is estimated to be more than INR 1.77 lakh crore.
According to Puri, commercial real estate was the only torchbearer in 2019 with demand for Grade A office space spiralling upward while vacancy levels in prime locales reducing. Branded players are likely to gain more precedence in 2020 as millennials’ quest for the branded product remains an all-time high.
All said and done, the current scenario points towards a subdued beginning, but as we move further towards the second half of 2020, we may see the measures and sops (announced during 2019) yield positive results.