About 1,950 under-construction residential projects having over 5 lakh units are stuck today in as many as 44 cities, primarily because of issues and alterations in the cash flow of developers, as per PropEquity data.
The analysis, which was released on August 15, shows that Greater Noida tops the list of stalled units among the tier I cities; as many as 74,645 units, or 17% of the projects, are stalled there. Thane and Gurugram come second and third, with 13% and 12%, or 57,520 and 52,509 units, respectively.
According to recent data, Mumbai ranks as the most affected city, with 234 stalled projects involving 37,883 units in aggregate. The city of Bengaluru also reports 225 projects involving 39,908 units. Even Kolkata and Chennai have poor performance, with a total number of stalled projects of 82 and 92, respectively.
According to research done regarding the given cases, the number of units where construction has been halted has risen 9 per cent since 2018. Samir Jasuja, Chairman of PropEquite, said that problems are due to poor cash flow management and developers’ siphoning of funds. To overcome this, the government launched the SWAMIH Fund in 2019, which has raised ₹15,530 crores but completed only about 32,000 units.
Where market instability prevails, homebuyers are advised to do their research within the market before sealing any deal on the house.
