Stalled Housing Projects: A Growing Concern in India's Real Estate Sector
Nearly 2,000 housing projects stalled across 42 cities, comprising 5.08 lakh units, due to financial mismanagement and lack of execution capabilities.
Stalled Housing ProjectsIndian Real Estate SectorPropequitySwamih FundHomebuyersReal Estate NewsAug 15, 2024
The problem of stalled projects has been rising over the years, with the number of stalled units increasing to 5,08,202 from 4,65,555 units in 2018. Samir Jasuja, Founder and CEO at PropEquity, attributes this to the lack of execution capabilities of developers, cash-flow mismanagement, and diversion of funds to buy new land banks or retire other loans.
To address this issue, the government launched the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund in November 2019. The fund aims to deliver 20,000 homes every year for the next three years. However, with around 32,000 units completed in the last five years, the task ahead is daunting.
The PropEquity data shows that Greater Noida in tier I has the maximum number of stuck units, with 74,645 units, followed by Bhiwadi in tier II with 13,393 units. Other cities with a high number of stalled projects include Gurugram, Noida, Ghaziabad, and Faridabad in the National Capital Region (NCR), and Mumbai, Navi Mumbai, and Thane in the Mumbai Metropolitan Region (MMR).
The southern cities of Bengaluru, Chennai, and Hyderabad also have a significant number of stalled projects. Bengaluru has 225 stalled projects comprising 39,908 units, while Chennai has 92 projects with 21,867 units, and Hyderabad has 25 projects with 6,169 units.
Among tier II cities, Bhiwadi has 13,393 stuck units in 33 stalled projects, followed by Lucknow with 13,024 units in 48 projects, Jaipur with 9,862 units in 37 projects, and Bhopal with 7,500 units in 27 projects.
The issue of stalled projects has put the onus on homebuyers to do their due diligence through professional experts before buying a house. Real estate disputes in various courts have been rising, and the backlog of stalled projects and the addition of new ones have made it essential for homebuyers to be cautious.
PropEquity, a data analytic firm, captures real estate data for RERA-approved projects in 44 Indian cities, including 14 tier I cities and 30 tier II cities. The firm provides insights into the real estate market, helping homebuyers and investors make informed decisions.
About PropEquity PropEquity is a leading data analytics firm in the Indian real estate sector. The firm provides data-driven insights to help homebuyers, investors, and developers make informed decisions. With a vast database of RERA-approved projects across 44 Indian cities, PropEquity is a trusted name in the industry.
nAbout SWAMIH Fund The Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund was launched by the government in November 2019 to address the issue of stalled housing projects. The fund aims to deliver 20,000 homes every year for the next three years, providing relief to homebuyers who have been affected by stalled projects.
Frequently Asked Questions
How many housing projects are stalled across India?
Nearly 2,000 housing projects are stalled across 42 cities in India.
What is the main reason for stalled housing projects?
The main reasons for stalled housing projects are financial mismanagement by developers and lack of execution capabilities.
What is the SWAMIH Fund?
The Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund is a government initiative to address the issue of stalled housing projects.
How many units are stalled in tier I cities?
1,636 projects totalling 4,31,946 units are stalled in 14 tier I cities.
What is PropEquity?
PropEquity is a leading data analytics firm in the Indian real estate sector, providing data-driven insights to help homebuyers, investors, and developers make informed decisions.
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