Hyderabad now tops in residential project execution
Hyderabad realty continues to show its strength. Earlier this month, a JLL India report showed that the city topped in both office space absorption and new completions in the country. The city has now emerged as the real estate market with least delayed/stalled residential projects among the top seven cities, with only 2,400 units in the city falling in this category out of the total 4.54 lakh units, accounting for a negligible 0.5 per cent, according to JLL. On the contrary, about 83.8 per cent of these units are present in two major metro cities—Delhi NCR (61.8 per cent) and Mumbai (22 per cent). Bengaluru accounts for 6.3 per cent, Kolkata 3.9 per cent, Pune 3.6 per cent and Chennai 1.9 per cent. In value terms, these projects stand at a whopping Rs 4.62 lakh crore, and Delhi NCR and Mumbai again account for nearly 90 per cent of it. JLL reviewed projects launched on or before 2014 and those which are still ‘under-construction’ have been referred to as delayed/stalled proj
cts. At the city level, 3/4th of the residential units in Delhi NCR are delayed/stalled and one out of every three residential units in Mumbai falls in this category. Category-wise delays In the top seven cities of Delhi NCR, Mumbai, Pune, Hyderabad, Chennai, Bengaluru and Kolkata, it is has been observed that the problem lies with only the upper middle income and premium category projects. JLL report stated, “We classify the houses with prices up to Rs 75 lakh as affordable and mid segment category for all cities except Mumbai. Due to the high real estate prices, the threshold of affordable and mid segment in Mumbai is Rs 1 crore. While the total value of delayed/stalled projects is Rs 4.62 lakh crore, it would be misleading to say that it is across the entire spectrum of housing categories. The reality is not all that grim
as the funds are mainly stuck in projects belonging to the upper-mid and premium categories. This is reflected in the average price of residential units across cities. For instance, the average price of delayed residential units stands at Rs 1.99 crore for Mumbai as compared to Rs 95 lakh in Bengaluru, Rs 94 lakh in Hyderabad and Rs 87 lakh in Chennai.” Although it is the affordable and mid-segment categories which form a substantial proportion of the residential sector activity, they do not account for much of the delayed projects, JLL noted.