PropEquity noted that the number of stranded units rose to 5,08,202 from 4,65,555 units in 2018.
Nearly 2,000 housing projects comprising 5.08 lakh units are stuck in 42 cities across the country, mainly due to poor financial management by developers and lack of execution capacity, according to data analytics firm PropEquity.
According to PropEquity data, there are 1,981 stalled residential projects totalling 508,000 units. Of these stalled projects, 1,636 projects totalling 4,31,946 units are located in 14 Tier I cities, while 345 projects totalling 76,256 units are located in 28 Tier II cities.
He also noted that the number of idle units increased to 5,08,202 from 4,65,555 units in 2018.
Samir Jasuja, Founder and CEO of PropEquity, said: “The problem of stalled projects and subsequent escalation is due to developers’ lack of execution capability, poor cash flow management and diversion of funds to buy new land banks or pay off other loans.”
He stressed the need to provide independent third-party audit services to home buyers to enable them to make an informed decision on the developers’ capabilities to complete the project on time.
To address the issue of stalled projects, the government launched the Special Window Fund for Affordable and Middle Income Housing (SWAMIH) in November 2019.
About 32,000 units have been completed over the past five years and the SWAMIH fund aims to deliver 20,000 homes each year for the next three years, PropEquity said.
PropEquity data showed that Greater Noida in Tier I with 74,645 units and Bhiwadi in Tier II with 13,393 units have the maximum number of stuck units.
Gurugram has 158 stalled projects with 52,509 units; Noida (103 projects, 41,438 units); Ghaziabad (50 projects, 15,278 units); Faridabad (16 projects, 7,060 units); and New Delhi (1 project, 900 units).
In the Mumbai Metropolitan Region (MMR), Mumbai has 234 stalled projects totalling 37,883 units, while Navi Mumbai (125 projects, 28,466 units) and Thane (186 projects, 57,520 units) have 172 stalled projects totalling 24,129 units.
Bengaluru has 225 stalled projects comprising 39,908 units; Kolkata (82 projects, 24,174 units); Chennai (92 projects, 21,867 units); and Hyderabad (25 projects, 6,169 units).
“Real estate disputes in various courts have been on the rise. Also, the accumulation of stalled projects and the addition of new ones have forced buyers to conduct due diligence through professional experts before purchasing a home,” Jasuja said.
Among tier-II cities, PropEquity data showed that Bhiwadi has 13,393 stuck units in 33 projects), Lucknow (13,024 units in 48 projects), Jaipur (9,862 units in 37 projects) and Bhopal (7,500 units in 27 projects).
PropEquity is owned and operated by PE Analytics Ltd. PropEquity collects real estate data for RERA approved projects across 44 cities in India, including 14 Tier I cities and 30 Tier II cities.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 15, 2024 | 14:59 IS
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