The Supreme Court order on National Capital Region-based builder Amrapali Developers may have come as a major relief for 42,000 house buyers, but around 2 lakh people around the country are suffering due to the laxity of several other builders who have taken them for a ride.
According to findings of a study by Anarock Property Consultants, 220 projects with 1.74 lakh homes are stalled in the top seven cities alone.
“Launched either in 2013 or before, these projects have absolutely no construction activity going on. The overall value of all stalled units is estimated to be more than ₹1.77 lakh crore. Most of these projects have been grounded due to either liquidity issues or litigation,” said Anuj Puri, Chairman, Anarock Property Consultants.
“The Supreme Court’s landmark decree on Amrapali Developers has rekindled hopes of lakhs of home buyers across cities who have waited for the delivery of their homes. While similar developments with regards to other stuck projects are awaited, SC has now set a precedent with a resounding message: comply or perish,” he said.
The Anarock study said almost 66% of these stalled units (approximately 1.15 lakh homes) have already been sold to buyers who are at the mercy of either the developer or the law of the land. The net estimated value of these sold units is approximately ₹1.11 lakh crore.
NCR has the largest pile-up of stalled units with 1.18 lakh homes (68% of the total stuck stock) spread over 67 projects with an overall value of ₹82,200 crore. Of this, nearly 69% (or 83,470 units) are already sold. 98% of the stuck projects in NCR are located in Noida and Greater Noida alone, while other cities like Gurugram and Ghaziabad have minimal inventory.
The Mumbai Metropolitan Region is second in the ranking, with nearly 38,060 units stalled across the region. However, MMR's stalled units are spread across 89 projects as against 67 projects in NCR. In terms of value of the stalled units, MMR is close to NCR, with stalled units worth over ₹80,200 crore.
The next is Pune with nearly 28 projects (comprising 9,650 units) worth ₹7,000 crore stalled, followed by Hyderabad with nearly 4,150 units worth ₹3,600 crore stuck. Bengaluru has 26 projects, comprising 3,870 stuck units worth ₹4,200 crore.
