Stressed Real Estate Projects: Will Homebuyers Finally Get Relief?
Despite the real estate market's sharp turnaround since 2021, stressed projects continue to pose problems. With the government and private players taking steps to revive stuck projects, will homebuyers finally get relief?
Real EstateStressed ProjectsHomebuyersNbccSupertechReal Estate NewsJul 15, 2024
While the government has taken steps to address the issue, including setting up a ₹15,534 crore fund to revive stuck projects, the problem persists. Private players like NBCC (India) Ltd and Suraksha Group have also stepped in to complete stuck projects. However, the journey to relief for homebuyers has been long and arduous.
For homebuyers like Puneet Parashar, who booked a three-bedroom apartment in Amrapali Group's 'HeartBeat City' township in Noida in 2011, the wait has been over a decade. Parashar was supposed to get possession of his home in 2014, but the project stalled in 2013. In 2019, NBCC was appointed by the Supreme Court to take over the task of completing 24 projects of Amrapali Group, and Parashar hopes to receive possession of his apartment by December this year.
However, the Amrapali case is an exception. In the overall stressed project scenario, resolution and execution have been the biggest roadblocks. The demolition of Supertech's illegal twin towers in Noida in 2022, which left thousands of homebuyers in the lurch, is a stark reminder of the challenges that remain. The government and private players need to work together to find a solution to this problem and provide relief to homebuyers.
The emergence of distressed asset credit funds is also expected to improve the accessibility of last-mile funding for project completion, supporting faster restructuring of debt by promoters with asset reconstruction companies (ARCs). Additionally, the government's SWAMIH fund has committed over ₹11,000 crore across more than 100 projects, and has until the investment commitment period of December 2024 to commit or deploy the remaining amount.
While there are glimmers of hope, the road to relief for homebuyers is still long. The government, private players, and regulatory bodies need to work together to find a solution to this problem and provide relief to thousands of homebuyers who have been waiting for years to get possession of their homes.
Frequently Asked Questions
How many stressed residential units are there in India?
According to the Indian Banks' Association, there are 412,000 stressed residential units, involving ₹4.08 trillion, in India.
What is the government's SWAMIH fund?
The SWAMIH fund is a ₹15,534 crore fund set up by the government to revive stuck projects.
What is the role of NBCC in stressed projects?
NBCC (India) Ltd has taken over the task of completing 24 projects of Amrapali Group and hopes to complete the remaining 17,000 apartments by March 2025.
What is the current state of the real estate market in India?
The Indian real estate market has seen a sharp turnaround since 2021, with rising sales and property prices, lower unsold stock, and aggressive land-buying and project launches.
How many homebuyers are waiting for possession of their homes?
Thousands of homebuyers are waiting for possession of their homes, with many waiting for over a decade.
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