India’s real estate industry plays a significant role in the country’s economic development. Since housing is a necessity rather than a choice, businesses in the real estate industry attract clients from all demographics. It’s also regarded as one of the least risky and simplest ways to invest in an emerging market like India.

Those projects are stalled have no construction activity at all, whereas projects that are delayed make slow or moderate progress. The term “delay” generally refers to a promoter or builder’s failure to fulfil an obligation to complete the project and transfer ownership of the property as stated in the sales agreement.

The current scenario of India’s stalled residential projects

Over the past ten years, the current situation of blocked and delayed projects in India has been the industry’s peril. According to a recent industry survey, India is the center of stalled real estate projects, with over 500,000 housing projects worth INR 4.48 Lakh Crore blocked across seven submarkets. In accordance with other reports, the NCR has the most halted projects (113,860), followed by the MMR with 41,720 delayed units. The slowdown in the world economy, changes in government regulations, and postponed projects are just a few of the factors that have put a lot of strain on the Indian real estate market in recent years. With an estimated 500,000 homes, the issue of halted projects has been particularly severe throughout the nation. Those who have previously acquired homes in Noida and Greater Noida are being significantly impacted by the situation with India’s residential projects that are currently in limbo. These two cities have more than 1.65 lakh blocked units worth Rs 1.18 lakh, according to Anarock. Additionally, the Gurugram market has 30,733 units worth INR 44,455 crore that are stopped or stuck, and Ghaziabad has 22,128 such projects worth INR 9,254 crore.

Factors adding to the delay of real estate projects

Housing unit delays can be attributed to a number of factors. The unregulated industry environment of pre-RERA era was one of the main causes of such project conditions. The large section of builders had started projects without proper project planning, cash-flow estimates and regulating clearances. The drawn-out and challenging procedure for receiving government permissions is another factor in delays. Projects can occasionally be delayed by a lack of funding. Builders are compelled to postpone a project when they are unable to acquire funds. Buyers are inconvenienced by real estate project delays, which also result in cost overruns. Builders should use a more planned and professional approach in order to prevent such delays.

Potential solutions to this prevailing situation

To help the real estate industry, the Real Estate Regulatory Authority (RERA) was founded in May 2016. Builders and developers are now required by RERA to give authorities and prospective homebuyers accurate information about a project. Additionally, RERA prohibits developers from moving money from one project to another. Builders must escrow 70% of project cash for use only on the project in order to be in compliance with RERA. In many states, RERA bodies are putting the shortlisted consultancy firm on empanelment. These consultants are providing their expertise in the completion of such stalled projects.

This is very much important that the regulatory bodies along with the major stockholders including developers and allottees collaboration in problem solving manner. The external expertise of PMC and design consultants is almost indispensable to resolve these project issue and ensure completion for the handing over of units.

The U.P. RERA has appointed REPL to help revive and complete “stalled real estate projects” by offering comprehensive project management consulting (PMC) and design solutions (Architecture, Structure, and MEP). With strong control over RERA, regulatory approvals, cost control, and scheduling, we are capable of taking on projects at any level and advancing their completion. Projects that are stuck can be handled by our in-house experts, who will make sure they are finished on schedule and in accordance with RERA guidelines.