Construction of about 2.2 lakh flats launched in 2011 and beyond in 7 major cities of the country has not been completed yet. The total value of these flats is around Rs 1.56 lakh crore. According to data from property consultant JLL India, the projects of real estate companies of Delhi-NCR are running the most late. 71% of the total flats stuck in the country are in Delhi-NCR, which is 56% of the total stuck houses.
According to the report, a total of 2,18,367 flats in 7 major cities of the country are under construction, which is worth Rs 1,55,804 crore. These 7 major cities include Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad and Pune besides Delhi-NCR. JLL said that out of these 2.2 lakh flats, the projects related to construction of about 30,000 flats have been confirmed to be canceled.
Construction of 1,54,075 flats in Delhi-NCR has been stalled, with a total value of Rs 86,824 crore. At the same time, 43,449 flats worth Rs 56,435 crore are yet to be completed in Mumbai. According to JLL, out of the total stuck projects across the country, 91% are in Delhi-NCR and Mumbai.
Talking about other cities, construction work of 8,131 flats in Chennai is running late, worth a total of Rs 4,474 crore. At the same time, 5,468 flats are stuck in Bengaluru, whose total value is Rs 2,768 crore. Construction of 4,765 flats in Pune worth Rs 3,718 crore is underway. A total of 2,095 flats in Hyderabad have not been completed, worth Rs 1,297 crore. In Kolkata, 384 flats worth Rs 228 crore are stuck.
In April this year, property consultancy firm Enarock released a report stating that construction of about 5.6 lakh flats launched in 2013 and beyond in 7 major cities across the country is slowing down from delivery estimates. The total value of these flats was reported at Rs 4.5 lakh crore in the report.
The delay in handing flat keys to homebuyers has been considered a major reason behind sluggish demand in the housing segment. Millions of home buyers investing in residential projects of developers such as Jaypee Group, Amrapali and Unitech are stranded. Abhay Upadhyay, president of the Homebuyers Organization Forum for People Collective Efforts (FPCE), said that around 5 lakh customers across the country have not yet received the keys to their flats due to delays in the projects. Upadhyay, in a recent meeting convened by the Finance Ministry, demanded an allocation of Rs 10,000 crore for the completion of troubled housing projects.
