Almost 5 lakh housing units stalled across 44 cities, Greater Noida tops the list: PropEquity
Greater Noida tops the list of stalled housing units (74,645) in Tier 1 cities and Bhiwadi, a Tier 2 city, has the highest number of delayed units (13,393)
Almost 2000 under construction housing projects totalling over 5 lakh units across 44 cities have been stalled on account of financial mismanagement by real estate developers and lack of execution capabilities, an analysis by data analytic firm PropEquity showed on August 15.
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 having 37,883 units followed by Bengaluru with 225 projects comprising 39,908 units and Thane with 186 projects.
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Kolkata has 82 projects with 24,174 units; Chennai has 92 stalled projects with 21,867 units and Hyderabad has 25 projects with 6,169 units. Pune has 172 stalled projects comprising 24,129 units.
In a city-wise data released on August 15, the NSE listed firm said that the number of stalled units have risen to 5.08 lakh, a rise of approximately 9% from 4.65 lakh units in 2018.
According to the data, 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.
{{/usCountry}}According to the data, 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.
{{/usCountry}}Also Read: Here are 5 legal options before homebuyers if their housing project is excessively delayed
{{/usCountry}}Also Read: Here are 5 legal options before homebuyers if their housing project is excessively delayed
{{/usCountry}}Commenting on the data, Samir Jasuja, Founder and CEO at PropEquity said, “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 service for homebuyers to empower them to make an informed decision about the developers’ capabilities to complete the project on time.”
{{/usCountry}}Commenting on the data, Samir Jasuja, Founder and CEO at PropEquity said, “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 service for homebuyers to empower them to make an informed decision about the developers’ capabilities to complete the project on time.”
{{/usCountry}}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 ₹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, it noted.
“Real estate disputes in various courts have been rising. To add to this, the backlog of stalled projects and the addition of new ones have put the onus on homebuyers to do their due diligence through professional experts before buying a house,” he said.
Delayed projects in tier II cities.
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, the data showed.
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PropEquity captured real estate data for RERA approved projects in 44 Indian Cities including 14 Tier I cities and 30 Tier II cities that included Amritsar, Mohali, Ludhiana, Chandigarh, Panipat, Dehradun, Bhiwadi, Sonepat, Jaipur, Agra, Lucknow, Bhopal, Indore, Visakhapatnam, Vijayawada, Guntur, Goa, Mangalore, Mysore, Coimbatore, Kochi, Trivandrum, Raipur, Bhubaneshwar, Ahmedabad, Gandhi Nagar, Vadodara, Surat, Nashik and Nagpur.
