Over ₹10.8 lakh crore in homebuyer funds is tied up in more than 4.32 lakh stalled housing projects across India’s major cities. This information comes from Vijai Mantri, a Co-founder of IRL Money. In a serious LinkedIn post, he warned that India’s strong interest in property is becoming a major financial problem for middle-class families. It’s also causing increasing stress for the wider economy.
Mantri noted that about 1,626 stalled projects exist in the top 15 locations. He figured that at roughly ₹2.5 crore per home, the total capital stuck is ₹10.79 lakh crore. The costs to keep these projects going are huge. If we assume a 9% interest rate, the yearly interest cost reaches ₹97,000 crore. Even if only half of this is debt, that’s ₹48,600 crore lost each year.
Buyers face personal, growing pain. They pay monthly loan installments and rent. They still have no home in sight. For builders, frozen cash flow makes project delays worse. It also breaks trust further. Lenders and finance companies see rising problems. They often get money back from mortgage holders, not the builders.
Mantri believes the problems spread to the economy. Stalled projects mean fewer construction jobs. Demand for building materials drops. Investor confidence weakens. He cautioned that while listed prices might not change much, the real value decreases due to discounts and delays.
His simple advice to home buyers is clear. Avoid hype before projects launch. Instead, pick projects almost finished and registered with RERA. Ask for clear information. This includes payment plans tied to construction progress and escrow account reports. Do not borrow too much money. Keep home loan payments low. Have a cash reserve for 12–18 months. Spread your investments. Do not put too much of your total wealth into property. Look into other safe investment options. Make smart offers on price. The risk of delay should mean a lower price for you. He writes that what you wanted most can cause terrible pain. Real estate is not just about cost per square foot. It also involves time, trust, and getting what was promised.