+
COVID-19 lockdown stalls construction activities
Real Estate

COVID-19 lockdown stalls construction activities

Image courtesy: Hindustan Times

  • More than 15.62 lakh units (launched between 2013 till 2019) are under construction in the top 7 cities.
  • Of this, MMR and NCR together comprise 57 per cent or approximately 8.90 lakh units.
  • Pune has nearly 2.62 lakh units under construction, followed by Bengaluru with 2.02 lakh units and Kolkata with approximately 90,670 units.
  • Chennai and Hyderabad together comprise just 8 per cent (approximately 1.18 lakh units) share of overall under-construction units.
  • With most top cities announcing a lockdown till at least March 31, homebuyers must brace themselves for project delays.
  • A lot is currently at stake for Indian residential real estate as cities go into complete lockdown mode to battle the spread of Covid-19. Developers tend to schedule project launches during the auspicious festivals of Gudi Padwa, Akshaya Tritiya, Navratri and Ugadi. The strict advisories for complete lockdown across cities will impact housing sales during the upcoming festivals, usually considered auspicious by several homebuyers to buy homes.


    Prashant Thakur, Director & Head-Research, Anarock Property Consultants, says, “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, reveals Anarock research. 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 Q1 2020 data comes in.”

    “Further analysis reveals that out of these 15.62 lakh units under construction, nearly 57 per cent or nearly 8.90 lakh units are in MMR and NCR alone. Both these regions already have a backlog of lakhs of delayed or stalled units. With construction activity almost coming to a standstill, homebuyers will have to brace themselves for another wave of delayed project deliveries.”

    Under-construction stock - city-wise

  • MMR currently has the highest under-construction stock with nearly 4.65 lakh units – 30 per cent of the overall under-construction stock across the top 7 cities.
  • NCR is close behind with 27 per cent or over 4.25 lakh units in various stages of construction. All these units were launched between 2013 till 2019-end.
  • Pune has close to 2.62 lakh units in various stages of construction.
  • Among the three southern cities, Bengaluru has the maximum under-construction stock as on 2019-end with nearly 2.02 lakh units, followed by Hyderabad with nearly 64,250 units and Chennai with the least stock of nearly 54,200 units.
  • Kolkata currently has more than 90,650 units under construction.
  • The road to recovery
    Once the crisis is under control, the government will have to dole out various economic measures to bail out severely-hit sectors, reconsider its fiscal deficit targets and start spending. That said, since this is a crisis with pan-India ramifications, all impacted projects will have to be excused from construction delay penalties under the respective state RERA.

    Image courtesy: Hindustan Times More than 15.62 lakh units (launched between 2013 till 2019) are under construction in the top 7 cities. Of this, MMR and NCR together comprise 57 per cent or approximately 8.90 lakh units. Pune has nearly 2.62 lakh units under construction, followed by Bengaluru with 2.02 lakh units and Kolkata with approximately 90,670 units. Chennai and Hyderabad together comprise just 8 per cent (approximately 1.18 lakh units) share of overall under-construction units. With most top cities announcing a lockdown till at least March 31, homebuyers must brace themselves for project delays. A lot is currently at stake for Indian residential real estate as cities go into complete lockdown mode to battle the spread of Covid-19. Developers tend to schedule project launches during the auspicious festivals of Gudi Padwa, Akshaya Tritiya, Navratri and Ugadi. The strict advisories for complete lockdown across cities will impact housing sales during the upcoming festivals, usually considered auspicious by several homebuyers to buy homes. Prashant Thakur, Director & Head-Research, Anarock Property Consultants, says, “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, reveals Anarock research. 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 Q1 2020 data comes in.” “Further analysis reveals that out of these 15.62 lakh units under construction, nearly 57 per cent or nearly 8.90 lakh units are in MMR and NCR alone. Both these regions already have a backlog of lakhs of delayed or stalled units. With construction activity almost coming to a standstill, homebuyers will have to brace themselves for another wave of delayed project deliveries.” Under-construction stock - city-wise MMR currently has the highest under-construction stock with nearly 4.65 lakh units – 30 per cent of the overall under-construction stock across the top 7 cities. NCR is close behind with 27 per cent or over 4.25 lakh units in various stages of construction. All these units were launched between 2013 till 2019-end. Pune has close to 2.62 lakh units in various stages of construction. Among the three southern cities, Bengaluru has the maximum under-construction stock as on 2019-end with nearly 2.02 lakh units, followed by Hyderabad with nearly 64,250 units and Chennai with the least stock of nearly 54,200 units. Kolkata currently has more than 90,650 units under construction. The road to recovery Once the crisis is under control, the government will have to dole out various economic measures to bail out severely-hit sectors, reconsider its fiscal deficit targets and start spending. That said, since this is a crisis with pan-India ramifications, all impacted projects will have to be excused from construction delay penalties under the respective state RERA.

    Next Story
    Infrastructure Urban

    Hindmetal Pioneers EM Tech in Mineral Exploration

    Hindmetal Exploration Services (HESPL), a wholly owned subsidiary of Hindustan Zinc, has become the first company in India to deploy advanced Electromagnetic (EM) technologies for mineral exploration. The initiative marks a major leap in the nation’s ability to identify hidden mineral resources with unprecedented precision.The breakthrough involves two cutting-edge tools: borehole EM, which detects and maps conductive ore bodies such as sulfide deposits in high detail, and SQUID surface sensors, which capture even the weakest electromagnetic signals—ideal for spotting low-conductivity or d..

    Next Story
    Infrastructure Urban

    Autodesk Launches Local Data Storage for India

    Autodesk has announced the launch of localized data storage in India, enabling businesses and public sector organizations to store and manage project data within the country. This expansion, part of Autodesk’s global regional offerings, supports regulated sectors such as government, infrastructure, and utilities by meeting compliance requirements while ensuring enterprise-grade security, privacy, and data recoverability.The move comes as Autodesk’s 2025 State of Design & Make report reveals that while digital transformation drives significant ROI in the architecture, engineering, const..

    Next Story
    Infrastructure Urban

    Rosatom Opens Pilot Uranium Facility at Tanzania’s Mkuju River Project

    Mantra Tanzania, a subsidiary of Uranium One Group (part of Rosatom), has commissioned a pilot uranium processing facility at the Mkuju River project in southern Tanzania. The inauguration, attended by Her Excellency Samia Suluhu Hassan, President of the United Republic of Tanzania, alongside senior government officials, community leaders, and Rosatom representatives, marks a major step forward in Russia–Tanzania nuclear energy cooperation.Alexey Likhachev, Director General of Rosatom, said: “Rosatom offers its cutting-edge uranium processing technologies to unlock Tanzania’s geological ..

    Advertisement

    Subscribe to Our Newsletter

    Get daily newsletters around different themes from Construction world.

    STAY CONNECTED

    Advertisement

    Advertisement

    Advertisement

    Talk to us?