Investments attracted by real estate sector from various public and private sources in Madhya Pradesh have declined at a compounded annual growth rate (CAGR) of 29 per cent in past four years i.e. from a level of Rs46,940 crore as of 2011-12 to just about Rs16,790 crore as of 2014-15, apex industry body, Associated Chambers of Commerce and Industry of India (ASSOCHAM) said on Thursday. “While in year-on-year (Y-o-Y) terms, realty sector investments attracted by MP have dropped by over 24 per cent i.e. from a level of Rs22,170 crore as of 2013-14 to Rs16,790 crore as of 2014-15,” noted the sector-specific survey conducted by ASSOCHAM.
“Ownership-wise, government sources accounted for major share of 54 per cent of the total investments attracted by the real estate sector in MP while private players accounted for the remaining share,” according to the analysis carried out by the ASSOCHAM Economic Research Bureau (AERB).
National secretary general of ASSOCHAM DS Rawat while releasing the chamber’s analysis said, “Investments made by private sources in real estate sector in MP had declined by a whopping 40 per cent between 2011-12 and 2014-15. Though projects with majority share of 66 per cent investments in real estate sector attracted by MP are under different stages of implementation, however, projects with about 34 per cent investments have remained non-starter as of 2014-15 and share of such projects has increased significantly from about 12 per cent as of 2011-12.”
Investments attracted by real estate sector from various public and private sources across India have declined by six per cent in past four years i.e. from a level of Rs15.2 lakh crore as of 2011-12 to about Rs14.3 lakh crore as of 2014-15. However, there has been a slight increase of just over two per cent year-on-year in the investments attracted by realty sector i.e. from a level of Rs14 lakh crore in 2013-14 to Rs14.3 lakh crore in 2014-15.
Private sector accounted for lion’s share of 85 per cent of the total investments attracted by the real estate sector across India while government/public sources accounted for the remaining share, highlighted the ASSOCHAM analysis. Real estate projects with about 76 per cent of the total investments attracted by the sector across India remained non-starter as of the aforesaid period, it added.