New Delhi: New Delhi: The newly announced stress fund of Rs 25,000 crore would be most beneficial to the Mumbai real estate market as the city has more than half the delayed residential projects, according to an analysis by data available with real estate portal PropTiger.com.
In the top 10 cities of the country, there are 1,665 RERA-registered projects that are delayed by over five years and are expected to see completion only after 2020. Of these, about 880 projects having around 2 lakh units are located in Mumbai Metropolitan Region (MMR).
“Housing projects in the MMR are more likely to meet the net-worth-positive and litigation-free conditions set under the AIF. This would mean a large part of the fund could be spent on completing projects in the Mumbai market. Because Mumbai is an expensive property market, the cost of project completion here would be comparatively lower than the ultimate price realisation. This would only help Mumbai’s case further,” said says Mani Rangarajan, Group COO, Elara Technologies-The company that owns Proptiger.com.
In Hyderabad, there are 276 projects that are delayed by more than 5 years. These projects together have 15,138 units. Pune has 241 delayed projects which together have 47,462 units.
Chennai has fewest delayed projects (24).
The analysis covered Pune, Ahmedabad, Chennai, Bengaluru, Gurugram, Kolkata, Hyderabad, Mumbai, and Noida-Greater Noida.
Most of the projects are delayed due to liquidity crunch, apart from delays in approvals and litigation.