New Delhi: The outbreak of Covid19 has jeopardized the completion of about 16 lakh houses that are under construction in top seven cities of the country, apart from lakhs of others in smaller towns.
As many as 15.62 lakh homes launched between 2013 and end of 2019 are under construction in the top seven cities and since the construction is thwarted acoss the country because of the outbreak, home buyers will have to wait longer for getting possession.
Of these 15.62 lakh houses, as many as 8.9 lakh homes are in Delhi and Mumbai, according to a report by ANAROCK Property Consultants.
“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. As many as 15.62 lakh units across the top 7 cities were in various stages of construction as on 2019 end. These include all under-construction units launched between 2013 till 2019-end. Even this figure is conservative – the number of units will be higher once quarter one (Q1) 2020 data comes in.” said Prashant Thakur, Director & Head – Research, ANAROCK Property Consultants.
Pune has about 2.62 lakh homes under construction units under construction. Bengaluru has about 2.02 lakh homes and Kolkata has around 90,670 houses under construction.
The spread of the virus has cast uncertainities in the real estate market as almost all cities have gone into complete lockdown to battle the disease.
Even the sales of the properties will be severely impacted during the upcoming festivals of Gudi Padwa, Akshaya Tritiya, Navratri and Ugadi which are considered quite auspicious by Indians for buying property.
Even when circumstances become normal and the disease is contained, the government will have to come out with economic measures to support the severely-affected sectors including real estate.