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Post-election inheritance of Rs 2.17 crore housing stuck in Mumbai
DNA  |  April 16, 2019

Varun Singh

If there is one 'inheritance' that the government in power post the upcoming elections will not look forward to, it is tackling the issue of the massive burden of stuck housing in the city. Of the total 5,61,100 delayed housing units (launched before or during 2013) in India, 1,92,100 are from the Mumbai Metropolitan Region. While the total worth of the delayed units is Rs 4,51,750 crore, the figure in MMR stands at Rs 2,17,550 crore — the highest in the country showed a report by Anarock Property Consultants.


As per ANAROCK data, the top 7 cities currently have a total of 5.6 lakh delayed housing units worth a whopping Rs 4,51,750 crore. These units were launched either in 2013 or before that. Lakhs of buyers across top cities — particularly MMR and NCR — have been left in limbo.


The report further states that top cities like NCR and MMR collectively account for 72 per cent of total delayed housing units across the top 7 cities worth Rs 3,49,010 crore &ndash nearly 77 per cent of the total worth of the stuck projects. In comparison, the southern cities of Bengaluru, Chennai and Hyderabad together account for a mere 10 per cent of the overall stuck housing units of a total worth of Rs 41,770 crore. The southern cities have predominantly been driven by service-class end-users, leaving limited scope for developers to be unprofessional.


Anuj Puri, Chairman, Anarock Property Consultants, said, "If there is one 'inheritance' that the Government in power post the upcoming elections will not look forward to, it is tackling the issue of the massive burden of stuck housing across the top Indian cities. Despite the setting up of a regulatory mechanism, countless homebuyers have been left in the lurch by their builders. Sadly, most of these stuck projects do not fall within the RERA ambit as they were launched years before it was implemented. Also, with many states having diluted the Centre's original RERA rules, homebuyers have only the courts to approach — a notoriously tedious task in India."


One of the major reason behind the dealy is lack of will to complete their projects and preference for funds diversion in developers. Buyers have understandably stopped releasing funds to builders, and builders claim they have no funds to complete construction. Lack of project clearances also contributes to the piling up of housing stock. In the pre-RERA era, many builders launched greenfield projects without the requisite approvals in place, resulting in their projects getting stuck.


The report also talks about solutions, one being the Government-owned NBCC that has been roped in to complete some stalled projects in NCR. This is a significant move which, if applied in larger numbers, can have a real impact.