The real estate market in Uttar Pradesh is facing significant challenges, with nearly 1.46 lakh housing units stalled across five major property markets, including Noida and Greater Noida. Data from PropEquity, a leading real estate analytics firm, highlights the sheer scale of this issue, pointing to cash-flow mismanagement, developer inefficiencies, and fund diversion as major causes. This problem is not unique to Uttar Pradesh, as 42 cities across India grapple with a similar crisis. PropEquity, which tracks over 57,000 developers, has responded with its new business vertical, PropAlert, aimed at safeguarding homebuyer interests. Let’s break down the key insights:

Real Estate Crisis in Uttar Pradesh

Noida and Greater Noida Lead in Stalled Projects
Five major property markets in Uttar Pradesh, including Noida and Greater Noida, account for 378 stalled housing projects, according to PropEquity. These stalled projects consist of a staggering 1.46 lakh units. The hardest-hit areas are Greater Noida, with 167 stalled projects, and Noida, with 103 projects. Collectively, they account for over 1.15 lakh units, making these two markets the epicenter of the state's real estate crisis.

Breakdown of Stalled Projects by City

Greater Noida: The Largest Share of Stalled Projects
Greater Noida, a vital part of the Delhi-NCR region, faces the largest number of stalled projects in Uttar Pradesh, with 167 developments halting construction, affecting 74,645 units. This region is home to both residential and commercial real estate development, and the freeze in construction impacts not only homebuyers but also the wider economy.

Noida and Ghaziabad Follow Closely
Noida, another crucial market in the NCR, is home to 103 stalled projects, representing 41,438 units. Ghaziabad, which is witnessing 50 stalled projects affecting 15,278 units, also plays a pivotal role in the real estate market of the region. These cities are part of the burgeoning property market of the Delhi-NCR area and contribute significantly to Uttar Pradesh’s urban development.

Other Cities in Uttar Pradesh Struggle as Well
The state capital, Lucknow, is not immune, with 48 stalled projects comprising 13,024 units. Even the historically rich city of Agra has 10 stalled projects, though it represents a smaller share with 1,495 units. The delays across these cities indicate that the crisis extends beyond just the NCR region, affecting buyers across the state.

National Scale of the Problem

1,981 Stalled Projects Across 42 Cities
PropEquity data reveals that 1,981 residential projects are stalled across 42 cities in India, amounting to a total of 5.08 lakh housing units. Of these, 1,636 projects are in 14 tier I cities, accounting for 4.31 lakh units. The remaining stalled projects are spread across 28 tier II cities. This nationwide crisis reflects deeper issues within the real estate sector, from liquidity problems to inefficient project management.

Root Causes of the Real Estate Crisis

Mismanagement and Fund Diversion
Samir Jasuja, founder and CEO of PropEquity, attributes this widespread stalling to the lack of execution capabilities among developers. Mismanagement of cash flows and the diversion of funds—often to purchase new land banks or repay older loans—has crippled many projects. This pattern of financial mismanagement is one of the primary reasons for project delays, leaving homebuyers in a state of uncertainty.

PropEquity's New Initiative: PropAlert

Safeguarding Homebuyer Interests
In response to the rising number of stalled projects, PropEquity has launched a new business vertical called PropAlert, which aims to provide regular updates on construction progress. This service will allow homebuyers to remain informed about the status of under-construction projects and mitigate risks related to delayed possession. PropEquity expects this service to generate Rs 12 crore in revenue by September 2025, with over 10,000 subscribers.

Financial Performance of PropEquity

29% Revenue Growth in Q1 FY24
PropEquity posted an impressive 29% growth in consolidated revenues during the April-June period of this fiscal year. The company's revenue climbed to Rs 12.06 crore from Rs 9.3 crore in the same period last year. This growth highlights the increasing demand for real estate data analytics, especially in light of ongoing challenges within the sector.