Stalled Projects Plague Indian Real Estate: Over 5 Lakh Homes Caught in Limbo
One in five under-construction homes stalled, with 1,981 projects across 44 cities stuck in the last 8 years
Real EstateStalled ProjectsPropequitySwamih FundRera Approved ProjectsReal Estate NewsAug 15, 2024
The number of stalled units has increased by 9% to 5,08,202, from 4,65,555 units in 2018. The remaining 4 under-constructed homes have been delivered after substantial delay of 3-4 years.
The data reveals that 1,636 projects totalling 4,31,946 units in 14 tier I cities and 345 projects totalling 76,256 units in 28 tier II cities have been stalled. Greater Noida in tier I with 74,645 units and Bhiwadi in tier II with 13,393 units top the list.
Greater Noida, among tier I cities, saw the highest proportion of stalled units at 17% (74,645 units in 167 projects), followed by Thane and Gurugram with 13% (57,520 units in 186 projects) and 12% (52,509 units in 158 projects) respectively.
Mumbai has the maximum number of 234 stalled projects followed by Bengaluru with 225 projects and Thane with 186 projects.
“The problem of stalled projects and the subsequent rise is due to the lack of execution capabilities of developers, cash flow mismanagement and diversion of funds to buy new land banks or retire other loans. The need of the hour is an independent third-party audit services for homebuyers to empower them to make an informed decision about the developers’ capabilities to complete the project on time,” said Samir Jasuja, Founder and CEO at PropEquity.
To address the issue of stalled projects, the Government launched the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund in November 2019. Till date, the SWAMIH Fund has raised Rs 15,530 crores to complete all stalled projects.
However, in the last five years, only approximately 32,000 units have been completed. The fund aims to deliver 20,000 homes every year for the next three years.
Bhiwadi has a maximum share of 18% (13,393 units in 33 projects) of stalled units followed by Lucknow and Jaipur with 17% (13,024 units in 48 projects) and 13% (9,862 units in 37 projects).
Lucknow has the maximum number of 48 stalled projects followed by Jaipur and Bhiwadi with 37 projects and 33 projects respectively.
PropEquity captures real estate data for RERA approved projects in 44 Indian Cities including 14 Tier I cities and 30 Tier II Cities.
About PropEquity
PropEquity is a leading real estate data analytics firm that provides actionable insights to stakeholders in the Indian real estate sector.
Keywords real estate, stalled projects, PropEquity, SWAMIH Fund, RERA approved projects
Frequently Asked Questions
What is the number of stalled projects in India?
According to PropEquity, 1,981 projects across 44 cities are stalled in the last 8 years.
What is the number of stalled units in India?
The number of stalled units has increased by 9% to 5,08,202, from 4,65,555 units in 2018.
What is the SWAMIH Fund?
The Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund is a government initiative launched in November 2019 to complete stalled projects.
How many units have been completed under the SWAMIH Fund?
In the last five years, only approximately 32,000 units have been completed under the SWAMIH Fund.
What is PropEquity?
PropEquity is a leading real estate data analytics firm that provides actionable insights to stakeholders in the Indian real estate sector.
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