The stalled last-mile projects in Mumbai Metropolitan Region (MMR) will require an investment of about Rs 1,500 crore for completion, says a new study. As many as 55,000 buyers have been awaiting completion of these projects.
The Centre last week announced the setting-up of the Rs 25,000-crore alternative investment fund to revive the stalled projects across the country.
The study done by real estate analytics firm Propstack said that 1715 towers or 10 per cent of total RERA registered projects are stalled in MMR. Total area of these projects is 33.4 million sq ft of which 25 per cent of the area is unsold (8.5 million sq ft).
The firm did a detailed analysis of over 10,000 RERA registered projects in MMR to get an understanding of the projects which are stalled (less than five per cent progress in last two years) and are at advanced stage of construction/last mile (more than 70 per cent complete).
It found that 60 per cent of projects are in the affordable and middle-income housing segment (Thane, Beyond Thane, Beyond MMR), and they would also fall under the ticket size of less than Rs 2 crore as approved by the Union Cabinet.
“We believe the fund will have to evaluate the project tower wise given that there could be projects where there are multiple towers at different stages of construction. The fund will have to prioritize towers which are close to completion,” it said.
There are 55,000 buyers across all these towers who are stalled in these projects and are awaiting completion of these projects, it said.
It estimates that additional cost of construction to complete all these stalled projects is Rs 1,200-1,600 crore. The good part is that the receivables from the contracted sales itself could fetch close to Rs 4,000-5,000 crore, the study said.