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We know many developers have been crying foul in recent times over insolvency proceedings. Anxious home buyers have also been fretting about delivery delays.
Yet, the Amrapali case shows a silver lining, where the Court is supervising completion and ready units are selling in the market, raising money for finishing the remainder.
Zooming In
📌 UP RERA shows 70 projects facing NCLT insolvency proceedings.
📌 Upon completion of the same (though slow), Noida's housing market will get a massive inventory overhang, possibly lowering home prices. Even though other Indian cities may see price hikes due to increasing raw material prices, Noida may see the opposite.
📌 Rationalization of housing prices in Noida is possible if other stalled projects are completed under the Amrapali model.
📌 NBCC (yes, same guys who built a housing society a few years back, and it's earmarked for demolition already) has taken up 650+ units in Noida and 4,500+ units in 23 Greater Noida projects under Supreme Court supervision and the aegis of ASPIRE.
Zooming Out
🔼 Similar initiatives may help such units (comparatively affordable than their counterparts) sell faster, thereby meeting demand and rationalizing pricing.
🔽 Yet, slow and low housing supply under this model may prove to a roadblock in realizing these dreams.