1.74 lakh homes worth ₹1.77 lakh cr stuck in 7 cities

1.74 lakh homes worth ₹1.77 lakh cr stuck in 7 cities

3,870 Bengaluru homes worth 4,200 cr stalled: Report

NCR has the largest pile-up of stalled units with 1.18 lakh homes. (File Image)

After the Supreme Court’s landmark decision on Amrapali developers rekindled the hopes of lakhs of home buyers, a real estate research has revealed that as many as 1.74 lakh homes in 220 projects were completely stalled in the top seven cities across India, locking over Rs 1.7 lakh crore in them.

Bengaluru alone accounts for 3,870 stuck units with Rs 4,200 crore stuck in them. Most of these projects have been grounded due to either liquidity issues or litigations.

Launched either in 2013 or before, these projects have absolutely no construction activity going on, Anarock, a realty services firm, said in its research.

“Almost 66% of these stalled units (approx. 1.15 lakh homes) have already been sold to buyers who have been left in the lurch - at the mercy of either the concerned developers or the law of the land. The net estimated value of these sold units is approx. INR 1,111 billion,” it said.

NCR has the largest pile-up of stalled units with 1.18 lakh homes (68% of the total stuck stock) spread over 67 projects with an overall value of Rs 82200 crore. Of this, nearly 69% (or 83,470 units) are already sold out. 98% of the stuck projects in NCR are located in Noida and Greater Noida alone, while other cities like Gurugram, Ghaziabad have minimal inventory.

Mumbai Metropolitan Region followed next with nearly 38,060 units stalled across the city. However, the number of projects covering stuck units in MMR is higher than in NCR.

MMR's stalled units span over 89 projects as against 67 projects in NCR. Interestingly, in terms of value of the stalled units, MMR is quite close to NCR, with stalled units worth over Rs 80,200 crore (as against Rs 82,200 crore in NCR).

Despite a huge parity in the overall number of stalled units between the two major regions, astronomical property prices in MMR have kept this difference minimal.

Pune comes next with nearly 28 projects (comprising 9,650 units) worth Rs 7,000 crore completely stalled, followed by Hyderabad with nearly 4,150 units worth Rs 3,600 crore stuck. Bengaluru has 26 projects comprising 3,870 stuck units worth Rs 4,200 crore.

“With so many projects stuck across the top cities, affected home buyers now see a glimmer of hope with the Supreme Court's intervention in the Amrapali case. Will these hopes be vindicated? The industry stays tuned for further updates on this,” Anarock said.