New investments in realty sector drop 55 per cent: ASSOCHAM

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New investments in realty sector drop 55 per cent: ASSOCHAM
New investments in the real estate sector across India have dried up by about 55 per cent as of March 2013 as against the corresponding period last year, according to an ASSOCHAM analysis.

"The realty sector in India attracted new investments worth over Rs 42,000 crore as of March 2013 which slipped from over Rs 92,600 crore a year ago," according to a real estate sector specific analysis carried out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

"While most of the states have seen a decline in attracting new investments in the realty sector, Gujarat has seen a surge of over 700 per cent as the state has attracted investments worth over Rs 17,000 crore as of March 2013 from just over Rs 2,000 crore a year ago," said Mr D.S. Rawat, national secretary general of ASSOCHAM while releasing the chamber's analysis.

"Kerala is another state which has seen massive growth of over 550 per cent in attracting new investments in real estate followed by Uttarakhand (400 per cent) and Rajasthan (175 per cent)," said Mr Rawat. "While almost rest of the states have seen a drop of over 50 per cent in new investments in the realty sector during the aforesaid period."

"Gujarat also has the highest share of about 41 per cent in the new investments attracted by the real estate sector across India during the last fiscal," highlights the ASSOCHAM analysis. "Apart from Gujarat, the states of Maharashtra (over 17 per cent), Karnataka (10 per cent), Tamil Nadu (eight per cent) and Uttar Pradesh (over six per cent) are amid top five states with maximum share in new investments attracted by real estate sector across India."

The state of Maharashtra accounts for maximum share of about 20 per cent in the total outstanding investments worth over Rs 14 lakh crore attracted by the real estate sector across India as of March 2013, according to the ASSOCHAM study.

However, the new investments in realty sector in Maharashtra have plummeted by over 55 per cent during the last fiscal.

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Read more about: real estate
Story first published: Tuesday, May 7, 2013, 14:16 [IST]
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