Amrapali Project: NBCC Accelerated Sale of Amrapali Project to Fund Construction

The state-run NBCC has accelerated the sale of unsold Amrapali units to finance the construction of stalled projects, as a consortium of seven banks has yet to make a final decision on construction financing.

Property consultant Anarock, which has been tasked with selling over 5,000 units of Amrapali in Noida and Greater Noida, has raised Rs 70 crore by selling around 150 units in a month.

Over 41,000 units sold and over 5,000 units unsold in over 20 stalled projects, together representing over 46,000 units, will be delivered by NBCC in installments by June 2024. This is the start of the largest initiative customer turnaround in the history of Noida/Greater Noida’s real estate market,” said PK Gupta, CMD, NBCC.

NBCC is expected to raise over Rs 2,000 crore from the sale of unsold stocks and has kept prices down to attract buyers.

Anarock said it had to sell all the units in 30 months and with the kind of response it is getting, the company is confident of selling it. It will deploy its proprietary PropTech marketing tools to market these projects.

“There is positive sentiment in the market and with the project being Supreme Court vetted, the buyer is confident of delivery. Additionally, we are selling inventory that is ready to move in or close to possession,” Santhosh said Kumar, Vice Chairman of ANAROCK Group.

The unsold housing stock in Noida and Greater Noida has decreased by 21% over the past 2 years. The total unsold inventory in the two cities collectively stood at 64,010 units at the end of 2019; it fell to around 50,260 units by the end of 2021. Despite the pandemic, both cities saw strong sales.

“The real estate market in Noida and Greater Noida is once again in growth mode, and there is strong demand for the revitalized projects of NBCC,” Kumar said.

NCR recorded the maximum number of project completions among the top 7 cities in 2021. Around 86,590 units were completed in 2021, of which Noida 5,430 units completed while Greater Noida saw the completion of 14,750 units.

All transactions related to Amrapali’s projects will take place under the banner of the Judicial Sequestration Committee, created specifically to revive nearly 46,000 blocked homes. NBCC has named construction partners in all relevant projects, and construction is underway at each site.

VNIT Nagpur was appointed as a consultant to oversee and ensure adequate construction quality for 20 of Amrapali’s projects, and NIT Jalandhar to additionally provide third-party quality monitoring for two projects.

As per the construction plan, all included projects will be completed and delivered by June 2024 at an estimated project cost of Rs 8,189.82 crore.

Rs 3,870.38 crore to come from sold inventory receivables, Rs 2,215.79 crore via marketing of currently unsold inventory, Rs 951.15 crore via adjoining properties, Rs 342.74 crore via divested units and Rs 88.97 crore via marketable commercial spaces, and FAR of approximately Rs 1,220 crore.

In addition, a consortium of seven banks has agreed to finance the projects and SBICAP will also provide last mile financing. In Phase 1, properties on offer range from BHK 1 to penthouses priced between Rs 20 lakh and Rs 1.5 crore, across 20 projects in Noida and Greater Noida.

The first sales window opened a month ago offers 500 units in the projects ‘Kingswood’, ‘Golf Homes’ and ‘Dream Valley Phase 2’ in Greater Noida and ‘Zodiac’ in Noida.

The NBCC had initially struggled to fund construction and many contractors had threatened to stop work if payment for the work was not forthcoming.