COVID-19 lockdown stalls construction activities
Real Estate

COVID-19 lockdown stalls construction activities

Image courtesy: Hindustan Times

  • More than 15.62 lakh units (launched between 2013 till 2019) are under construction in the top 7 cities.
  • Of this, MMR and NCR together comprise 57 per cent or approximately 8.90 lakh units.
  • Pune has nearly 2.62 lakh units under construction, followed by Bengaluru with 2.02 lakh units and Kolkata with approximately 90,670 units.
  • Chennai and Hyderabad together comprise just 8 per cent (approximately 1.18 lakh units) share of overall under-construction units.
  • With most top cities announcing a lockdown till at least March 31, homebuyers must brace themselves for project delays.
  • A lot is currently at stake for Indian residential real estate as cities go into complete lockdown mode to battle the spread of Covid-19. Developers tend to schedule project launches during the auspicious festivals of Gudi Padwa, Akshaya Tritiya, Navratri and Ugadi. The strict advisories for complete lockdown across cities will impact housing sales during the upcoming festivals, usually considered auspicious by several homebuyers to buy homes.


    Prashant Thakur, Director & Head-Research, Anarock Property Consultants, says, “Another fallout of the lockdown is that many key markets will have almost zero construction activity at the project sites. This will further strain several developers’ financial health. As many as 15.62 lakh units across the top 7 cities were in various stages of construction as on 2019 end, reveals Anarock research. These include all under-construction units launched between 2013 till 2019-end. Even this figure is conservative – the number of units will be higher once Q1 2020 data comes in.”

    “Further analysis reveals that out of these 15.62 lakh units under construction, nearly 57 per cent or nearly 8.90 lakh units are in MMR and NCR alone. Both these regions already have a backlog of lakhs of delayed or stalled units. With construction activity almost coming to a standstill, homebuyers will have to brace themselves for another wave of delayed project deliveries.”

    Under-construction stock - city-wise

  • MMR currently has the highest under-construction stock with nearly 4.65 lakh units – 30 per cent of the overall under-construction stock across the top 7 cities.
  • NCR is close behind with 27 per cent or over 4.25 lakh units in various stages of construction. All these units were launched between 2013 till 2019-end.
  • Pune has close to 2.62 lakh units in various stages of construction.
  • Among the three southern cities, Bengaluru has the maximum under-construction stock as on 2019-end with nearly 2.02 lakh units, followed by Hyderabad with nearly 64,250 units and Chennai with the least stock of nearly 54,200 units.
  • Kolkata currently has more than 90,650 units under construction.
  • The road to recovery
    Once the crisis is under control, the government will have to dole out various economic measures to bail out severely-hit sectors, reconsider its fiscal deficit targets and start spending. That said, since this is a crisis with pan-India ramifications, all impacted projects will have to be excused from construction delay penalties under the respective state RERA.

    Image courtesy: Hindustan Times More than 15.62 lakh units (launched between 2013 till 2019) are under construction in the top 7 cities. Of this, MMR and NCR together comprise 57 per cent or approximately 8.90 lakh units. Pune has nearly 2.62 lakh units under construction, followed by Bengaluru with 2.02 lakh units and Kolkata with approximately 90,670 units. Chennai and Hyderabad together comprise just 8 per cent (approximately 1.18 lakh units) share of overall under-construction units. With most top cities announcing a lockdown till at least March 31, homebuyers must brace themselves for project delays. A lot is currently at stake for Indian residential real estate as cities go into complete lockdown mode to battle the spread of Covid-19. Developers tend to schedule project launches during the auspicious festivals of Gudi Padwa, Akshaya Tritiya, Navratri and Ugadi. The strict advisories for complete lockdown across cities will impact housing sales during the upcoming festivals, usually considered auspicious by several homebuyers to buy homes. Prashant Thakur, Director & Head-Research, Anarock Property Consultants, says, “Another fallout of the lockdown is that many key markets will have almost zero construction activity at the project sites. This will further strain several developers’ financial health. As many as 15.62 lakh units across the top 7 cities were in various stages of construction as on 2019 end, reveals Anarock research. These include all under-construction units launched between 2013 till 2019-end. Even this figure is conservative – the number of units will be higher once Q1 2020 data comes in.” “Further analysis reveals that out of these 15.62 lakh units under construction, nearly 57 per cent or nearly 8.90 lakh units are in MMR and NCR alone. Both these regions already have a backlog of lakhs of delayed or stalled units. With construction activity almost coming to a standstill, homebuyers will have to brace themselves for another wave of delayed project deliveries.” Under-construction stock - city-wise MMR currently has the highest under-construction stock with nearly 4.65 lakh units – 30 per cent of the overall under-construction stock across the top 7 cities. NCR is close behind with 27 per cent or over 4.25 lakh units in various stages of construction. All these units were launched between 2013 till 2019-end. Pune has close to 2.62 lakh units in various stages of construction. Among the three southern cities, Bengaluru has the maximum under-construction stock as on 2019-end with nearly 2.02 lakh units, followed by Hyderabad with nearly 64,250 units and Chennai with the least stock of nearly 54,200 units. Kolkata currently has more than 90,650 units under construction. The road to recovery Once the crisis is under control, the government will have to dole out various economic measures to bail out severely-hit sectors, reconsider its fiscal deficit targets and start spending. That said, since this is a crisis with pan-India ramifications, all impacted projects will have to be excused from construction delay penalties under the respective state RERA.

    Next Story
    Real Estate

    Mahindra Lifespaces Unveils ‘Home of Positive Energy’

    Mahindra Lifespaces has introduced ‘Home of Positive Energy’, a brand philosophy aimed at enhancing well-being through thoughtful design, natural light, and green spaces. The launch includes a digital video campaign (DVC) and a Mobile Experience Centre—a first-of-its-kind traveling showcase across Mumbai.CMO Abhimanyu Mathur stated, “Every Mahindra home is designed as a sanctuary that nurtures aspirations and daily life.” The campaign, developed with The Womb, emphasizes differentiation beyond location and amenities, making well-being central to Mahindra Lifespaces’ identity.With t..

    Next Story
    Real Estate

    Mumbai Registers 11,541 Property Deals in February 2025

    According to Knight Frank India, while property registrations in the Mumbai real estate market have moderated, signs of stabilisation are emerging. The market saw a 4 per cent Year-on-Year (YoY) decline in registrations, with 11,541 properties registered in February 2025, compared to 12,056 in the same period last year, based on data from the Maharashtra Inspector General of Registration (IGR).Nevertheless, stamp duty collections remained steady in February 2025, reaching Rs 8.96 billion (bn), which is almost identical to the Rs. 8.85 bn collected in February 2024. On a month-on-month comparis..

    Next Story
    Resources

    Godrej Expands Smart Security Portfolio

    Godrej Security Solutions has launched a new range of premium home lockers, blending sophisticated design with advanced security. The company aims for 20% growth in FY26 and a 70% market share in the home locker segment.The new lineup—NX Pro Slide, NX Pro Luxe, Rhino Regal, and NX Seal—features dual-mode access (digital & biometric), intelligent alarms, and space-efficient interiors. Additionally, the Defender Aurum Pro Royal Class E safe meets the BIS-certified QCO mandate for jewellers, while the AccuGold iEDX Series supports precise, non-destructive gold testing.Godrej is expanding ..

    Advertisement

    Advertisement

    Subscribe to Our Newsletter

    Get daily newsletters around different themes from Construction world.

    STAY CONNECTED

    Advertisement

    Advertisement

    Advertisement

    Advertisement

    Talk to us?