Across the country, countless individuals have invested their life savings into booking homes, but possession remains elusive. Especially around Delhi and NCR, thousands are paying both home EMIs and rent for other accommodations. According to Vijay Mantri, co-founder of IRL Money, more than 432,000 stalled projects in India's top cities have trapped homebuyers' investments worth nearly ₹10.8 trillion.
On LinkedIn, Vijay Mantri shares, 'People in India are investing heavily in real estate. Such habits are financially crippling middle-class families and are impacting the nation’s economy at large.'
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In the 15 largest cities of India, 1,626 housing projects remain incomplete. Funds amounting to nearly ₹10.8 trillion are tied up in these projects. If an annual interest rate of 9% is applied to this capital, the annual loss approximates ₹97,000 crore. This illustrates the massive loss faced by both real estate investors and banks.
Homebuyers are facing a double financial burden. They continue to pay their EMIs while also shouldering rent costs, yet the promised possession of their homes is nowhere in sight.
Vijay argues that the stalled projects are impacting the entire economy. The stagnation means a loss of construction jobs, a drop in demand for building materials, and a decrease in investor confidence. 'While base prices may appear stable, discounts and delays lead to decreased effective values.'
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Vijay Mantri advises homebuyers to steer clear of pre-launch promises and to choose only projects nearing completion or registered with RERA. Additionally, he suggests diversifying investments rather than concentrating a large portion of net worth in real estate. He advocates for limiting debt and managing EMIs cautiously.
Vijay states that the things you hope for the most can often bring the greatest disappointment. He emphasizes that real estate is not just about the price of a home; it's also about getting possession on time, trusting the builder, and having promises fulfilled.
