78,000 'ready to move in ' homes unsold across top cities: A Report
Around 78,000 ready-to-move-in housing units, valued at ?65,950 crore, remain unsold in the country, according to a report by Anarock Property Consultants.
It accounts for nearly 12 percent of the 6.44 lakh unsold units in cities. The report suggests that homebuyers seeking de-risked ready-to-move-in properties can leverage the COVID-19 period to their advantage.
The report said that although construction activity is completely halted across India, first-time homebuyers are at an unprecedented advantage to negotiate good deals on ready-to-move-in options and simultaneously benefit from all-time low-interest rates of 7.15-7.8 percent.
Anuj Puri, Chairman, Anarock Property Consultants, said: "Of the total unsold ready stock, MMR and Pune together have approximately 35,200 units, which are collectively worth ?37,550 crore. This accounts for 57 percent of the total value of ready unsold homes across all top seven cities.”
The National Capital Region (NCR) has around 15,600 unsold ready units, followed by Bengaluru with nearly 10,100 apartments. Hyderabad has the least unsold ready stock of around 2,400 homes worth ?1,870 crore.
Puri was of the view that the lockdown period has kick-started rapid technology-led evolution on the Indian real estate market.
"Some states are now also mulling the introduction of e-registration of property documents, thereby completing the entire value chain. This is necessary since physical site visits are unlikely to pick up quickly even after the lockdown ends, as both buyers and sellers will remain wary," he said.
It further said, while basic monitoring will vest with the Finance Ministry and project agency, there is a need for a higher level of monitoring on reforms to be undertaken and to deal with issues of stalled projects.
The NIP project database would be hosted on India Investment Grid (IIG) shortly to provide visibility to the NIP and help in its financing with prospective investors; domestic and foreign, able to access updated project-level information, it said.
Each line Ministry/State would further add new projects and update their respective project details at predefined time intervals so that updated data is available to prospective investors, it added.
The NIP has been made on a best effort basis by aggregating the information provided by various stakeholders including line ministries, departments, state governments and private sector across infrastructure sub-sectors identified in the Harmonised Master List of Infrastructure.
To draw up the NIP, a bottom-up approach was adopted wherein all projects (Greenfield or Brownfield, Under Implementation or under conceptualization) costing greater than ?100 crore per project were sought to be captured, it said.
As per the draft report projects worth ?19.5 lakh crore to be implemented during the current fiscal, followed by ?19 lakh crore in 2021-22. In the remaining three years, it would be ?13.8 lakh crore during 2022-23, ?12.8 lakh crore in 2023-24 while ?11.1 lakh crore in the terminal year of 2024-25.
On the financing, the Finance Minister in December had said, the government will look at deepening the debt market and alternative investment funds which will provide the bulk of the debt financing necessary for this.
"We are looking at various steps to reform the PPP based contracts which have to be implemented. Dispute resolution related, enforcement of contracts which is a very critical component, all this is also being looked at when we're talking about reforming the entire process as per the suggestion was given by various sub-groups under the task force," she had said.
She also announced that the first edition of Annual Global Investors'' Meet will be held in the second half of the coming year to meet investors at a single platform.
