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 Transport

    RAHSTA 2026 to Host Certified Highway Construction Masterclass

    RAHSTA 2026 will organise the Certified Highway Construction Masterclass, a specialised two-day corporate training programme for highway construction professionals, on July 8–9, 2026, at the Jio World Convention Centre.The Masterclass will be delivered by RASTA – Center for Road Technology and supported by Construction World and FIRST Construction Council.Designed as an industry-led refresher programme, the Masterclass aims to help engineering and project teams stay updated with the latest advancements in highway construction, pavement technologies, sustainable materials, intelligent compa..

    Next Story
    Infrastructure Urban

    Grand Mercure Mysuru Turns 10; BHVL to Invest Rs 1,000 Crore in Karnataka

    Brigade Hotel Ventures Limited (BHVL) has marked the 10th anniversary of its flagship property, Grand Mercure Mysuru, by announcing a major investment plan of around Rs 1,000 crore in Karnataka over the next five years. The company said the investment will be directed towards new hospitality projects as well as modernisation of existing assets, aligning with the evolving demand for experiential tourism.The announcement comes as BHVL reiterated its focus on strengthening Mysuru’s position as a prominent global tourism destination by supporting the local micro-economy and adopting sustainable ..

    Next Story
    Infrastructure Urban

    Ottobock and Celcius Set Up Prosthetics Warehouse in India

    Celcius Logistics, a domestic third-party logistics (3PL) company specialising in end-to-end cold-chain solutions, has partnered with Ottobock India, the Indian arm of Germany-based Ottobock, to establish a dedicated prosthetics warehouse and logistics distribution hub in India. As part of the collaboration, a technology-enabled facility has been launched in Thane to streamline storage and nationwide movement of prosthetic and assistive devices.The dedicated warehouse is expected to strengthen the medical supply chain by reducing turnaround time and improving access to prosthetic products acro..

    Advertisement

    Subscribe to Our Newsletter

    Get daily newsletters around different themes from Construction world.

    STAY CONNECTED

    Advertisement

    Advertisement

    Advertisement