Thousands of Homebuyers in Limbo as 5,000+ Real Estate Projects Face Delays in Karnataka
Over 5,000 real estate projects in Karnataka are facing indefinite delays, leaving thousands of homebuyers without their promised homes. Bengaluru is the worst-hit city with over 1,300 stalled projects.
Real EstateDelaysHomebuyersBengaluruKarnatakaReal EstateJun 01, 2025
A report from The Hindustan Times highlights the issue, with Bengaluru alone accounting for over 1,300 of these stalled projects. Buyers say they have received no construction updates, while some websites and official communication channels of builders have gone silent altogether. The lack of timely possession has forced many homebuyers to continue paying both EMIs and rent, while others are struggling with the uncertainty of legal disputes, incomplete documentation, or projects being declared invalid due to non-compliance.
Real estate projects are considered expired when developers fail to seek a renewal after the registration period ends. They are labelled lapsed when the project remains incomplete and no extension has been approved. In both cases, the projects are stripped of valid registration under regulatory rules, exposing builders to penalties and possible legal action.
In Karnataka alone, out of 7,707 registered real estate projects, 2,632 builders have defaulted on their timelines. Despite the provision to apply for a one-year extension, many developers failed to do so within the stipulated timeframe. This has led to a significant number of projects being left in a state of uncertainty, with no clear path forward for the affected homebuyers.
Under the Real Estate (Regulation and Development) Act, developers must upload project progress reports every quarter, detailing construction updates, fund usage, and timelines. However, in several stalled cases, these mandatory disclosures have stopped altogether, leaving buyers without any visibility on the status of their investments. The Karnataka Real Estate Regulatory Authority (KRERA), tasked with monitoring and regulating the sector, has penalised multiple projects for delays and non-compliance. But enforcement has been slow.
Despite orders worth hundreds of crores against defaulting builders, only a fraction has been recovered so far. For affected homebuyers, the path forward remains unclear, and the wait for a promised home continues indefinitely. The situation highlights the need for stronger regulatory oversight and more effective enforcement to protect the interests of homebuyers and ensure that developers meet their commitments.
Frequently Asked Questions
What is the main reason for the delays in real estate projects in Karnataka?
The main reasons for delays in real estate projects in Karnataka include developers failing to seek renewals after the registration period ends and not obtaining valid extensions, leading to projects being marked as lapsed or expired.
How many real estate projects in Karnataka are currently facing delays?
Over 5,000 real estate projects in Karnataka are currently facing delays, with more than 2,600 projects missing their deadlines and another 2,700-plus projects being marked as lapsed or expired.
What are the consequences for developers who fail to comply with the Real Estate (Regulation and Development) Act?
Developers who fail to comply with the Real Estate (Regulation and Development) Act face penalties and possible legal action, including the stripping of valid registration for their projects and orders for financial compensation to affected homebuyers.
How are homebuyers affected by these delays?
Homebuyers are affected by these delays as they continue to pay EMIs and rent, face legal disputes, and struggle with incomplete documentation. Many are left without any visibility on the status of their investments, leading to financial and emotional stress.
What is the role of the Karnataka Real Estate Regulatory Authority (KRERA) in addressing these issues?
The Karnataka Real Estate Regulatory Authority (KRERA) is tasked with monitoring and regulating the real estate sector, penalising projects for delays and non-compliance, and ensuring that developers meet their commitments to homebuyers. However, enforcement has been slow, and only a fraction of the ordered penalties has been recovered so far.
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