India’s housing sector is sitting on a ticking time bomb, with over ₹10 lakh crore of buyer money locked in stalled projects. A new warning from wealth strategist Vijai Mantri underscores the mounting financial stress on families, developers, and lenders, as delays erode trust and amplify risks in one of the country’s most critical asset classes.

Vijai Mantri, co-founder and chief investment strategist at JRL Money, said in a LinkedIn post recently that 1,626 residential projects of around 432,000 homes in 15 major locations are stalled. At an average ticket size of Rs 2.5 crore per unit, the total buyer money stuck adds up to Rs 10.79 trillion.

The “carry cost” only compounds the pain. If the entire amount for buying homes in those projects was financed by debt at 9 per cent, the annual interest burden would be close to Rs 97,000 crore. If half is debt, homebuyers are collectively “burning” nearly Rs 48,600 crore every year in equated monthly installments (EMI).

Why it matters

• Families face the double blow of servicing EMIs while also paying rent, with no delivery timeline in sight. 
• Developers see cash flows dry up, causing further delays and eroding public trust. 
• Lending institutions grapple with stressed loans, though they often recover dues from borrowers rather than developers. 
• The economy loses “multiplier” benefits of construction jobs, demand for materials, and consumer spending. 
• Property markets appear stable on paper but “real” values erode through delivery delays, discounts, or freebies.

What homebuyers can do

• Mantri advised homebuyers to shun pre-launch hype and stick to near-completion, RERA-registered projects with escrow safeguards. 
• Insist on transparency, construction-linked payment plans, quarterly updates, and escrow utilisation reports. 
• Keep housing EMIs within prudent ratios and maintain a contingency buffer of 12 to 18 months. 
• Diversify investments rather than concentrating wealth in property. Regulated investment alternatives can offer liquidity and governance. 
• Negotiate smartly: factor delay risks into your price; if possession timelines are uncertain, the discount should reflect it.

“Real estate isn’t just about price per square foot,” Mantri cautioned. “It is about time, trust, and delivery. What you loved most can indeed give unbelievable pain.”

For aspiring homeowners, the message is clear, while property remains a key asset class in India, blind faith in under-construction projects can turn a dream investment into a financial trap.