Top 5 Reasons Why Real Estate Projects Get Stuck

Have you ever tried to invest in a real estate project that’s gotten stuck? Before investing in a real estate project you should read this civil experience article or have already invested in construction and face issues then Comment your reason in the comment section

Under Construction projects can be very tricky! Please do thorough due diligence before making this once in a lifetime investment toward your dream home!

Why Real Estate Projects Get Stuck

Top 5 Reasons Why Real Estate Projects Get Stuck

#1 No Money For Construction

The builder has money to start the project but not finish it.

#2 Diversion of Funds

The builder takes money for ‘Construction Project A’ and puts it in ‘Project B’ rather than complete project A.

Question from a reader: Does it applies today also because Rera is der hence builder cannot do much here and there!

Answer: Yes RERA has tried to minimize this by their rules on escrow accounts, but builders still find a way out sometimes!

#3 Permission Issue

The builder couldn’t get the approval process!

There are so many reasons such as faulty design, not following local authority guidelines, improper knowledge, etc

#4 No Intention!

The builder never had the intention to finish the project.

Construction Builder has no desire to finish the project or start a new construction site or business.

#5 Didn’t Follow Construction Plans

The builder construct the building as per construction plans but after they change plans And now Municipality has got his project stuck!

Top 5 Reasons Why Real Estate Projects Get Stuck Infography

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These are Some of the reasons, why NBFC avoids giving funding in such Real Estate Projects

In that case, what can we do as the buyer’s when purchasing an under-construction project. Is there a lawyer who we can appoint to check documents or what are the other options?

Here we provide short and simple points regarding construction real-estate investment but if you want a detailed article then tell us in the comment and follow us.


Author Aakash Dudhat

It is my pleasure to welcome you to, a website created and managed by Dudhat Aakash. In addition to having a Bachelor's degree in Civil Engineering

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