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1.74 lakh houses in 220 real estate projects completely stalled: Report

A day after the Supreme Court’s landmark decree in the Amrapali case, a new report has said that there are as many as 220 projects equalling 1.74 lakh homes that are completely stalled in the top seven cities across the country.

Most of these projects have been grounded due to either liquidity issues or litigations, the report added.

These projects were launched either in 2013 or before and have absolutely no construction activity going on.

Almost 66 percent of these stalled units (approximately 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 approximately Rs 1.1 lakh crore, ANAROCK Property Consultants said in a report.

NCR has the largest pile-up of stalled units with 1.18 lakh homes (68 percent of the total stuck stock) spread over 67 projects with an overall value of Rs 82,200 crore. Of this, nearly 69 percent (or 83,470 units) are already sold out. As many as 98 percent of the stuck projects in NCR are located in Noida and Greater Noida alone, while other cities like Gurugram, Ghaziabad have minimal inventory, the report said.

MMR follows 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. 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, it said.

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.