Wealth advisor warns ₹10.8 lakh crore is stuck in real estate: Are you the next victim?
For buyers, the pain is personal and compounding: ongoing EMIs plus rent with no possession in sight. For developers, cash flow freezes only deepen project delays and widen the trust deficit.
- Sep 8, 2025,
- Updated Sep 8, 2025 8:38 AM IST
Nearly ₹10.8 lakh crore of homebuyer capital is locked in over 4.32 lakh stalled homes across India’s top cities, according to Vijai Mantri, Co-founder of IRL Money. In a sobering LinkedIn post, he warns that India’s real estate obsession is turning into a financial quagmire for middle-class families and a growing stress point for the broader economy.
“There are approximately 1,626 stalled projects in the top 15 locations,” Mantri wrote. At an estimated ₹2.5 crore per home, the total capital stuck is ₹10.79 lakh crore. The carry cost alone is brutal: assuming a 9% interest burden, the annual interest burn touches ₹97,000 crore — even if only half of it is debt, that’s ₹48,600 crore lost annually.
For buyers, the pain is personal and compounding: ongoing EMIs plus rent with no possession in sight. For developers, cash flow freezes only deepen project delays and widen the trust deficit. And while lenders and NBFCs face rising stress, they often recover dues from mortgage holders — not builders.
Mantri argues the ripple effects extend to the economy itself: stalled projects mean lost construction jobs, reduced demand for materials, and eroded investor confidence. “Headline prices may remain sticky, but effective values fall through discounts and delays,” he cautioned.
His advice to homebuyers is bluntly pragmatic:
- Avoid pre-launch hype; choose near-completion, RERA-registered projects.
- Demand transparency, including construction-linked payment plans and escrow reports.
- Don’t over-leverage: cap housing EMIs and maintain a 12–18 month cash buffer.
- Diversify: don’t let real estate dominate your net worth; consider regulated investment alternatives.
- Price smart: delay risk should equal a discount in your offer.
“What you loved most can indeed give unbelievable pain,” he writes. “Real estate isn’t just about price per square foot — it’s about time, trust, and delivery.
Nearly ₹10.8 lakh crore of homebuyer capital is locked in over 4.32 lakh stalled homes across India’s top cities, according to Vijai Mantri, Co-founder of IRL Money. In a sobering LinkedIn post, he warns that India’s real estate obsession is turning into a financial quagmire for middle-class families and a growing stress point for the broader economy.
“There are approximately 1,626 stalled projects in the top 15 locations,” Mantri wrote. At an estimated ₹2.5 crore per home, the total capital stuck is ₹10.79 lakh crore. The carry cost alone is brutal: assuming a 9% interest burden, the annual interest burn touches ₹97,000 crore — even if only half of it is debt, that’s ₹48,600 crore lost annually.
For buyers, the pain is personal and compounding: ongoing EMIs plus rent with no possession in sight. For developers, cash flow freezes only deepen project delays and widen the trust deficit. And while lenders and NBFCs face rising stress, they often recover dues from mortgage holders — not builders.
Mantri argues the ripple effects extend to the economy itself: stalled projects mean lost construction jobs, reduced demand for materials, and eroded investor confidence. “Headline prices may remain sticky, but effective values fall through discounts and delays,” he cautioned.
His advice to homebuyers is bluntly pragmatic:
- Avoid pre-launch hype; choose near-completion, RERA-registered projects.
- Demand transparency, including construction-linked payment plans and escrow reports.
- Don’t over-leverage: cap housing EMIs and maintain a 12–18 month cash buffer.
- Diversify: don’t let real estate dominate your net worth; consider regulated investment alternatives.
- Price smart: delay risk should equal a discount in your offer.
“What you loved most can indeed give unbelievable pain,” he writes. “Real estate isn’t just about price per square foot — it’s about time, trust, and delivery.