Rs 1.56 lakh crore worth flats launched before 2011 still incomplete; Delhi builders biggest defaulters

NEW DELHI: Nearly 2.2 lakh housing units, worth Rs 1.56 lakh crore, launched in 2011 and before across seven major cities are yet to be completed by real estate developers, according to property consultant JLL India.

According to JLL data, the real estate companies of Delhi-NCR are the biggest defaulters as their contribution in delayed housing units accounts for 71 per cent in volume and 56 per cent in value terms.

As many as 2,18,367 housing units valuing Rs 1,55,804 crore are delayed and at various stages of construction in seven cities -- Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad and Pune. Out of the nearly 2.2 lakh units, JLL said in a report that "about 30,000 units are confirmed to be scrapped".

The consultant pointed out that the national capital region (Delhi-NCR) is facing delays in 1,54,075 units valuing Rs 86,824 crore. As many as 43,449 units worth Rs 56,435 crore are still incomplete in Mumbai.

"NCR and Mumbai together contributed to 91 per cent of the troubled units," JLL said in the report.

Chennai has 8,131 delayed units worth Rs 4,474 crore, while Bengaluru has 5,468 units worth Rs 2,768 crore and Pune 4,765 units with a value of Rs 3,718 crore.

Total delayed units in Hyderabad stood at 2,095 worth Rs 1,297 crore. Kolkata has the least number of delayed units at 384 worth Rs 288 crore.

In April this year, property consultant Anarock came out with a report that suggested that around 5.6 lakh housing units (worth Rs 4.5 lakh crore) that were launched in 2013 and before in these seven cities were running behind the delivery timelines.

A significant delay in giving possession of apartments to homebuyers is one of the major reasons for demand slowdown in the housing segment.

Lakhs of home buyers are stuck in residential projects launched by developers such as Jaypee group, Amrapali and Unitech.

Homebuyers body Forum for Peoples' Collective Efforts (FPCE) President Abhay Upadhyay said 5 lakh customers are stuck across the country due to delayed projects.

In a recent meeting called by the finance minister, he demanded the creation of a Rs 10,000 crore stress fund to complete such projects and provide relief to homebuyers.