According to the latest ‘India Ratings and Research’ report, the lockdown imposed by state governments would hit infrastructure construction in the big cities.
At present, 1.562 million units launched between 2013 and 2019 are under construction in the top seven cities. Of this, the Mumbai Metropolitan Region (MMR) and National Capital Region (NCR) together comprise 57 per cent or 890,000.
Both these regions already have a backlog of lakhs of delayed/stalled units. With construction activity almost coming to a standstill, home buyers will have to brace for another wave of delayed project deliveries.
Developers tend to schedule project launches during the festivals considered auspicious for the purpose, such as Ugadi, Gudi Padwa, Akshaya Tritiya or Navratri.
With the strict advisories for complete lockdown across cities will impact housing sales during the upcoming festivals, usually considered auspicious by several to buy homes.
The report says that the lockdown imposed by state governments would hit infrastructure construction in the big cities.
This would impact the revenue growth of construction companies in the near term. Typically, Q4 (the January-March quarter) accounts for 30-35 per cent of the annual revenue of construction companies, of which a month’s lockdown can erode 8-10 per cent, according to the Report.