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Houses worth Rs 3 lakh crore face construction delays: Report
ET Realty  |  August 10, 2018

Sobia Khan Bengaluru

An overhang of 4.65 lakh units of delayed housing projects across India that were significantly behind delivery deadlines and with daunting construction delays threaten the green shoots of recovery in markets for the real estate sector, a recent report by Propequity found. The total value of projects facing construction delays added up to Rs 3.3 lakh crore or over $47 billion, according to the study. However, industry experts, National Real Estate Development Council (NAREDCO) and Confederation of Real Estate Developers Association (CREDAI) strongly disagreed with the figures.

 

According to industry bodies, there has been robust demand for ready-to-move-in projects and new launches in the last two quarters.

 

“The numbers shared by the research firm may be including projects that are yet to receive occupancy certificates. There have been postponements of decision by buyers due to goods and services tax and occupancy certificate (OC) issues. However, we are witnessing a strong demand across our projects,” said Niranjan Hiranandani, president, NAREDCO and chairman of the Hiranandani group.

 

According to the study, these projects are on hold for a variety of reasons including financial constraints, execution challenges, supply surplus in the market due to over-ambitious launches by developers, environmental clearances and slowing sales, among others.