Outstanding investments attracted by the real estate sector in Chief Minister Narendra Modi-ruled Gujarat have plummeted by 20 per cent from over Rs 2.37 lakh crore in September 2012 to about Rs 1.90 lakh crore in September 2013, states the latest report from ASSOCHAM.
There has been a gradual fall in outstanding investments attracted by the real estate sector in Gujarat as the inflow of investments declined by about five per cent i.e. from over Rs 2.49 lakh crore as of September 2011 to Rs 2.37 lakh crore as of September 2012, according to a comprehensive analysis titled ‘Real Estate Sector: Outlook for 2014’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The fall in Gujarat during the last 12 months is more than the national average where the dip in investments in the real-estate sector has been six per cent during the during the aforesaid period i.e. from over Rs 15.39 lakh crore to about Rs 14.51 lakh crore, it added.
Apart from Gujarat, the states of Jharkhand, Haryana, 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 and Kashmir, Assam, Orissa and Uttar Pradesh have recorded a surge in investments attracted by realty sector.
“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,” the report added.
In Gujarat, about 63 per cent of total outstanding investments in realty sector were under implementation as of September 2013 while nationally over 68 per cent of total investments were under implementation.
Even the share of Gujarat in the outstanding investments attracted by real estate sector across top 20 states of India has come down from over 15.39 per cent as of September 2012 to about 13 per cent as of September 2013.
As of September 2013, Maharashtra accounts for highest share of about 20 per cent in outstanding real estate 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).