India’s real estate sector is grappling with a severe crisis as thousands of housing projects across the country remain incomplete. A recent analysis by PropEquity revealed that nearly 2,000 projects, comprising over 5 lakh units, are stalled in 44 cities. This alarming trend, primarily attributed to financial mismanagement and execution deficiencies by developers, has significantly impacted homebuyers and investors.
Greater Noida, once a thriving real estate hub, now leads the list of cities with the highest number of stalled units. With 74,645 units across 167 projects, Greater Noida accounts for a staggering 17% of the total stalled units in Tier 1 cities. Thane and Gurugram follow closely, with 57,520 and 52,509 units respectively. Mumbai, the financial capital of India, has witnessed a significant increase in stalled projects, with 234 projects and 37,883 units.
The number of stalled units has risen by approximately 9% since 2018, reaching 5.08 lakh. This indicates a growing trend of developers failing to deliver projects on time. The government’s Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund, established in 2019, has been unable to effectively address the crisis. Despite having amassed Rs 15,530 crore, the fund has only managed to deliver around 32,000 units, falling short of its target of 20,000 homes per year. The crisis has also led to a surge in legal disputes between homebuyers and developers. As the number of stalled projects continues to rise, homebuyers are increasingly resorting to legal action to protect their interests.
This highlights the urgent need for systemic reforms and enhanced oversight in the real estate sector to prevent future crises and ensure timely project completion. The plight of homebuyers caught in the midst of this crisis is heartbreaking. Many have invested their life savings in these projects, only to find themselves in a state of uncertainty. The emotional toll on affected individuals and families is immense. The government and industry stakeholders must prioritize the interests of homebuyers and take decisive action to resolve the issue of stalled housing projects.
