Quantification
of Realty Stress – 90,000 Crores-- PropEquity
New Delhi, September 17, 2019: The setting up of a stress fund of Rs. 20,000 crore for completion of stalled projects by the government is going to lend the much needed relief to the distressed housing sector. This move is to revive stalled projects in the affordable and middle income housing category. This special window will provide last mile funding for housing projects which are non-NPA and non-NCLT projects and will focus on unfinished projects. This step is a very positive move in the direction of reviving the real estate sector bythe government.
It is also important to point out that the government really had no role to play in the creation of the current crisis. It addition the impact of the GST and demonetisationon the stressed projects discussed in this release was minimal as these project were in the affordable and mid category and thus cashless as they required maximum housing finance. The government also reduced the GST last year to provide relief to the developers and to the sector. In fact the current crisis has been a consequence of key causes such aslack of execution capability of developers, oversupply of inventory, excessive land banking, lack of understanding of the demand supply dynamics, unjustified price appreciation, lack of social and physical infrastructure in emerging markets. The crisis today has further escalated due to the current NBFC crisis.
|
Under
Construction Projects to be completed in the next 2 years |
||||
|
Tier |
No
of Builders |
No
of Projects |
No
of Units |
Percentage |
|
Tier-1 |
2,919 |
3,891 |
799,039 |
85% |
|
Tier-2 |
590 |
697 |
135,843 |
15% |
|
Grand
Total |
3,509 |
4,588 |
934,882 |
|
|
|
|
|||
|
City |
No of Builders |
No of Projects |
No of Units |
Percentage |
|
MMR |
988 |
1,258 |
200,299 |
21% |
|
NCR |
258 |
409 |
222,660 |
24% |
|
Chennai |
113 |
181 |
35,798 |
4% |
|
Pune |
617 |
800 |
111,019 |
12% |
|
Hyderabad |
184 |
215 |
37,642 |
4% |
|
Bengaluru |
345 |
431 |
72,723 |
8% |
|
Kolkata |
177 |
275 |
67,290 |
7% |
|
Ahmedabad |
285 |
322 |
51,608 |
6% |
|
Tier
2 Cities (28) |
590 |
697 |
135,843 |
15% |
|
Total |
3,557 |
4,588 |
934,882 |
|
1. Projects to be completed
by Dec 2021, i.e. within 2 year
2. Only Apartments, Ind
Floors, and Villas are considered
3. Hold projects details
provided separately
4. Current price of the
projects <= MMR <= 7500, Gurgaon<=6000, Ahmedabad <=4000 and
remaining Tier-1 cities 5000 and remaining tier-2 cities <= 3000 psqft
considered
5. Tier-1 - Ahmedabad, Navi
Mumbai, Bengaluru, Kolkata,Chennai,Faridabad,Ghaziabad,Greater
Noida,Gurugram,Hyderabad,Mumbai,New Delhi,Noida,Pune,Thane
Tier-2 - Agra,Amritsar,Vadodara,Nashik,Bhopal,Coimbatore,Dehradun,Gandhinagar,Chandigarh,Bhiwadi,Bhubaneshwar,Vijayawada,Indore,Jaipur,Kochi,Ludhiana,Mangalore,Mohali,Mysore,Nagpur,Goa,Panipat,Raipur,Sonepat,Surat,Trivandrum,Lucknow,Guntur,Visakhapatnam
6. All Prices & Sizes are considered on Super Area"
