Outstanding investments attracted by India’s real estate sector have plummeted from over `15.39 lakh crore as of September 2012 to about `14.51 lakh crore as of September 2013 thereby registering significant drop of about six per cent, apex industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM) said on Sunday.
“The real estate sector suffered grave turbulence in 2013 due to plethora of reasons like rampant economic slowdown both globally and domestically, liquidity crunch, unstable currency, high input costs, labour shortage, high interest rates and growing inflation,” according to a comprehensive analysis titled Real Estate Sector: Outlook for 2014 conducted by ASSOCHAM.
The States of Jharkhand, Haryana, Gujarat, Madhya Pradesh and Andhra Pradesh are top five States that have seen significant decline in investment inflows in realty sector during the year long period between September 2012 and September 2013 while Bihar, Jammu & Kashmir, Assam, Odisha and Uttar Pradesh have recorded a surge in investments attracted by realty sector.
Interestingly, investments in real estate sector had increased marginally by about two per cent from about `15.1 lakh crore as of September 2011 to `15.3 lakh crore as of September 2012, highlighted the ASSOCHAM analysis. About 68 per cent of the total investments in realty sector as of September 2013 were under implementation while about 69 per cent of real estate investments were under implementation in the previous year.
Maharashtra accounts for about 20 per cent share of these investments followed by Gujarat (13 per cent), Haryana (11.2 per cent), Karnataka (11.1 per cent), Uttar Pradesh (9.8 per cent) and Andhra Pradesh (9.6 per cent).
There seems to be no respite in the offing for India’s real estate sector at least during the first half of the calendar year 2014, believe majority of players in the realty sector, highlighted the ASSOCHAM survey.