Covid lockdown: The grim reality of NCR realty

New Delhi: Over 68,000 houses, that were to be delivered to buyers in 2020 in the Delhi-National Capital Region (NCR) are unlikely to be completed due to stopped construction during lockdown and the National Green Tribunal (NGT) ban in November-December, leading real estate developers and consultants told ET.

Migration of labour has further compounded problems for builders, who expect it will require 2-3 months to mobilise workforce once lockdown is lifted. Even half-complete projects would be difficult to finish by December this year.

“Construction sites were shut for majority of last 6 months, earlier due to NGT ban in Delhi NCR and now due to Covid 19. Also slowing sales and collection momentum will delay project deliveries as builders will have to arrange more funding,” said Nayan Raheja of Raheja Developers.

According to a study by property consultant JLL, about 3 lakh houses in NCR will get delayed due to the lockdown of which 1.24 lakh are under mid segment (which sells the most). This doesn’t include 2 lakh units that are on the stalled project list.

“Mid-segment accounted for 41% of the total 3.03 lakh under construction residential units in Delhi NCR. Maximum proportion (66%) of these 1.24 lakh mid-segment, under-construction residential units are concentrated in Noida and Greater Noida. Ghaziabad also has a sizeable proportion (22%),” said Shweta Kakkar, senior manager, research, JLL.