This will also make the wait for delayed flats frustratingly longer. According to a survey by real estate consultants Anarock, there are over 3 lakh such flats in the main cities of Delhi-NCR. Flats are considered delayed or stuck if they were launched on or before 2014. Constructions that began after that period are ‘ongoing’.
Delivery timelines of ‘ongoing’ projects will also be hit. Completion deadlines of over three lakh flats in NCR may be hit by a two-year delay because of two waves of Covid-19. Realtors’ bodies Naredco and Credai claim at least a two-year setback has to be accounted for by buyers and regulatory authorities. According to Anarock, almost 50% of the delayed flats are in Greater Noida.
Real estate firms have cited manpower and supply chain problems during the pandemic as reasons for the delay. Lack of cash flow has also affected work. RK Arora, CMD of Supertech and president of Naredco, UP, said, “Since March 2020, there has been very slow progress in project execution due to labour shortage, raw material scarcity and allied problems. Delivery timelines will be postponed by about two years. To speed up construction…, there is a need for the government to announce a relief package and provide last-mile funding through banks.” Pankaj Bajaj, president of Credai (NCR), echoed Arora.
“Real estate has been among the sectors worst hit and most projects are likely to get delayed by two years. We are looking forward to some relaxations to help us tide over this,” he said.
Anarock data says there are around 3.29 lakh units launched in 2014 or before in NCR that are delayed or stuck. “The pandemic is one of the reasons. They were all to be delivered by June 2021. Greater Noida has 50% of these units; Noida has around 16%, Gurgaon has around 12% and Ghaziabad 10%. The remaining 12% are in Delhi, Bhiwadi and Faridabad,” said Prashant Thakur, head of research at Anarock.
UP-Rera member Balvinder Kumar said a solution has been thought of. “We had given a six-month relaxation for validity or registration to builders last year when the pandemic hit. By existing rules, all registrations can be valid for a year from its date of expiration. We have decided to give an additional six months validity extension to registration of builders.”