INDUSTRY
Financial constraints stall about 2,000 housing projects across 42 cities
- IBJ Bureau
- Aug 16, 2024
Nearly 2,000 housing projects comprising 5.08 lakh units are stalled across 42 cities in the country, mainly due to financial mismanagement by developers and lack of execution capabilities, according to data by analytic firm PropEquity.
According to the data, there are 1,981 residential projects that are stalled, totalling 5.08 lakh units. Of these stalled projects, as many as 1,636 projects totalling 4,31,946 units are in 14 tier-I cities, while 345 projects totalling 76,256 units are in 28 tier-II cities.
The data also points out that the number of stalled units rose to 5,08,202 from 4,65,555 units in 2018.
Samir Jasuja, the founder and CEO of PropEquity, has 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.” He has stressed on the need to provide independent third-party audit services for homebuyers to empower them to make an informed decision about the developers’ capabilities to complete the project on time.
To address the issue of stalled projects, the government had launched a Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund in November 2019.
In the last five years, around 32,000 units have been completed, and the SWAMIH fund aims to deliver 20,000 homes every year for the next three years, PropEquity has added.
Report By
View Reporter News