The implementation of RERA has led to a sharp decline in incremental stalled projects since 2018. Additionally, post-Covid consolidation in the residential real estate sector has helped curb stalled inventory growth. Government interventions, through SWAMIH funding and NCLT-led mechanisms such as developer/ consortium takeovers or Resolution Professional-supervised project completion, are expected to ease stalled inventory and strengthen buyer confidence.

• Policy reforms such as Real Estate (Regulation and Development) Act, 2016 (RERA), implementation of the Insolvency and Bankruptcy Code (IBC), and stricter GST compliance have brought a structural shift in India’s residential real estate sector.
  
• As of December 2025, the top seven cities accounted for nearly 84.6% of the stalled residential inventory across India.
  

Exhibit: Stalled inventory trends in pre-RERA, post-RERA and recent years across top 7 cities (in units)

Source: ICRA Research and Propequity