Greater Noida tops the list with highest interrupted real state projects; Thane and Gurugram follow

In a troubling trend for India’s real estate industry, around 2,000 housing projects, comprising more than 500,000 units across 44 cities, have come to a standstill. This halt is attributed to financial mismanagement by developers and inadequate execution abilities, as revealed by data analytics firm PropEquity.

Greater Noida tops the list with the highest number of stalled real estate projects. (Image: Pixabay)

Greater Noida: In a concerning development for India’s real estate sector, nearly 2,000 housing projects with over 5 lakh units across 44 cities, have been stalled due to financial mismanagement by developers and lack of execution capabilities, according to an analysis by PropEquity, a data analytics firm.

Greater Noida, other tier I cities top the chart of most stalled projects

Tier I cities have been hit hardest, with Greater Noida leading the list, accounting for 17 per cent of stalled units—equivalent to 74,645 homes spread across 167 projects. Thane and Gurugram follow closely with 13 per cent (57,520 units in 186 projects) and 12 per cent(52,509 units in 158 projects), respectively.

Mumbai, despite not topping the percentage share, has the highest number of stalled projects—234 in total, comprising 37,883 homes. Bengaluru also faces significant delays, with 225 projects stalling nearly 39,908 units. Other major cities affected include Kolkata (82 projects with 24,174 units), Chennai (92 projects with 21,867 units), Hyderabad (25 projects with 6,169 units), and Pune (172 projects with 24,129 units).

Tier II cities also in the list

The issue is not limited to Tier I cities. In Tier II cities, Bhiwadi recorded the highest proportion of stalled units at 18 per cent (13,393 units in 33 projects), followed by Lucknow at 17 per cent (13,024 units in 48 projects) and Jaipur at 13 per cent (9,862 units in 37 projects). Lucknow leads with the maximum number of stalled projects, totaling 48.

Stalled projects rise by 9% since 2018

The city-wise analysis reveals that the number of stalled housing units has risen sharply to 5.08 lakh in 2024, marking an approximate 9 per cen increase from 4.65 lakh units in 2018. Samir Jasuja, Founder and CEO of PropEquity, attributed this surge to developers’ poor financial management, noting that many have misallocated cash flow, diverted funds to purchase new land, or retired other loans.

“The rise in stalled projects is largely due to developers’ failure to execute projects as promised, leaving homebuyers vulnerable. An independent audit service is urgently needed to empower homebuyers to make informed decisions on developers’ capabilities,” said Jasuja.

Government interventions yield limited to no success!

In an effort to combat the growing problem of stalled projects, the Indian government launched the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund in November 2019. While the fund has raised Rs 15,530 crores to support stalled projects, progress has been slow. Only 32,000 units have been completed in the last five years, well below expectations. The SWAMIH Fund has now set an ambitious goal to deliver 20,000 homes annually for the next three years.

Need for diligence amid growing disputes

The rise in stalled projects has triggered a surge in real estate disputes, adding to an already burdened judicial system. Jasuja urged homebuyers to exercise caution and seek professional advice before making property investments, noting that the delays and disputes could continue unless developers and authorities take decisive steps to address the underlying financial issues.

The report covered data from RERA-approved projects across 44 Indian cities, including 14 Tier I and 30 Tier II cities, reflecting the widespread impact of the real estate crisis in India.

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