The real estate sector is facing a significant crisis, with recent reports revealing that approximately 2,000 housing projects, encompassing 5.08 lakh units, are stalled across 42 cities. This setback has left numerous buyers in a state of uncertainty, potentially delaying their dreams of homeownership.
According to data from PropEquity, a prominent data analytics company, the primary causes of these delays are financial mismanagement and inadequate implementation by developers. The report highlights that developers have failed to properly utilise funds, resulting in the incomplete construction of many projects.
The stalled projects include 1,981 housing schemes, with 4,31,946 units affected in 14 major cities and 76,256 units in 28 secondary cities. The situation has raised questions about accountability and the prospects of justice for the affected buyers.
The latest report reveals a troubling rise in stalled housing projects, with the number of affected units climbing to 5,08,202, up from 4,65,555 units in 2018. This increase underscores the growing impact of poor decision-making by developers, resulting in a surge in incomplete projects. As a consequence, many home buyers, particularly in cities like Delhi-NCR, continue to face delays in realising their homeownership dreams.
Sameer Jasuja, founder and CEO of PropEquity, attributes the rise in stalled projects to developers’ inadequate execution capabilities and poor cash flow management. According to Jasuja, developers are using funds intended for construction to purchase new land or repay existing loans. This misallocation of resources leads to incomplete projects and leaves buyers’ investments stranded.
As the sector grapples with these challenges, stakeholders call for measures to address the financial and operational deficiencies that have led to this widespread disruption.
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