Over 2,600 Karnataka Real Estate Projects Delayed, Rs 6 Bn Refunds Owed
Real Estate

Over 2,600 Karnataka Real Estate Projects Delayed, Rs 6 Bn Refunds Owed

More than 2,600 real estate projects across Karnataka have missed their scheduled completion deadlines, with many now facing indefinite delays. Bengaluru is the worst-affected city, accounting for 1,301 stalled developments. Additionally, 1,007 projects have applied for deadline extensions, which are currently under review, according to data from the Karnataka Real Estate Regulatory Authority (KRERA).

KRERA has issued a public notice warning that registration periods for several projects have expired and remain unrenewed, cautioning buyers that dealing with these projects carries risks.

Experts attribute these delays to several factors. Regulatory hurdles remain a leading cause, as developers struggle to secure multiple government approvals related to environment, land use, and local municipal clearances. These processes often extend over months or years, significantly delaying construction start dates.

Financial constraints also play a critical role. Developers usually depend on customer advances and loans to fund construction, but slow sales and tightening financing have caused many projects to stall. In several cases, funds have been diverted to other developments, resulting in cash flow shortages and further delays. This problem has worsened in recent years as large real estate companies grapple with rising debt and liquidity challenges.

Poor planning and weak project management compound the situation. Some builders launch projects without adequate feasibility studies or underestimate costs and timelines, which leads to execution difficulties later.

Karnataka developers currently owe homebuyers approximately Rs 6.67 billion in refunds due to delays in apartment handovers, according to official KRERA records as of 31 December 2024. KRERA approved 1,660 recovery claims totalling Rs 7.6 billion, but refunds have been recovered in only 233 cases, amounting to Rs 918 million—just 14 per cent of the total recovery orders issued.

Pending recoveries stood at over Rs 4.86 billion at the end of January 2024 but climbed 
sharply by 37 per cent to nearly Rs 6.67 billion by December. 

More than 2,600 real estate projects across Karnataka have missed their scheduled completion deadlines, with many now facing indefinite delays. Bengaluru is the worst-affected city, accounting for 1,301 stalled developments. Additionally, 1,007 projects have applied for deadline extensions, which are currently under review, according to data from the Karnataka Real Estate Regulatory Authority (KRERA).KRERA has issued a public notice warning that registration periods for several projects have expired and remain unrenewed, cautioning buyers that dealing with these projects carries risks.Experts attribute these delays to several factors. Regulatory hurdles remain a leading cause, as developers struggle to secure multiple government approvals related to environment, land use, and local municipal clearances. These processes often extend over months or years, significantly delaying construction start dates.Financial constraints also play a critical role. Developers usually depend on customer advances and loans to fund construction, but slow sales and tightening financing have caused many projects to stall. In several cases, funds have been diverted to other developments, resulting in cash flow shortages and further delays. This problem has worsened in recent years as large real estate companies grapple with rising debt and liquidity challenges.Poor planning and weak project management compound the situation. Some builders launch projects without adequate feasibility studies or underestimate costs and timelines, which leads to execution difficulties later.Karnataka developers currently owe homebuyers approximately Rs 6.67 billion in refunds due to delays in apartment handovers, according to official KRERA records as of 31 December 2024. KRERA approved 1,660 recovery claims totalling Rs 7.6 billion, but refunds have been recovered in only 233 cases, amounting to Rs 918 million—just 14 per cent of the total recovery orders issued.Pending recoveries stood at over Rs 4.86 billion at the end of January 2024 but climbed sharply by 37 per cent to nearly Rs 6.67 billion by December. 

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?