Over 75 per cent of the total 3,540 live projects with total outstanding investments worth over Rs 14 lakh crore attracted by the real estate sector across India remained non-starter as of financial year 2014-15, noted a just-concluded study by apex industry body ASSOCHAM.
“While over 2,300 projects in the realty sector remained non-starter, over 1,000 on-going projects have registered significant delay in completion,” highlighted the study titled ‘Real estate investment: State-level analysis,’ conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
“With 964 projects, domestic private sector accounted for 95 per cent share in real estate projects facing delays followed by public sector (49 projects) and foreign private companies (six projects),” noted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).
“On an average, real estate projects in India are facing a delay of 33 months in completion,” said D.S. Rawat, Secretary General of ASSOCHAM while releasing the findings of the chamber’s study.
“We urge the government to pass the long-pending Real Estate (Regulation and Development) Bill on an urgent basis as it would help in resolving the key issues that are hampering the growth of the sector,” said Rawat.
Maharashtra alone accounts for over one-fifth share (21 per cent) in the total outstanding investments attracted by real estate sector throughout India followed by Uttar Pradesh (14 per cent), Gujarat (13 per cent), Karnataka (12 per cent) and Haryana (eight per cent) that are amid top five states in this regard.
Tamil Nadu and Telangana accounted for over six per cent share each in terms of total outstanding investments garnered by realty sector in the country.
Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Odisha and Uttarakhand together accounted for negligible share of less than even two per cent in the total outstanding investments attracted by the sector.
Kerala has recorded highest compounded annual growth rate (CAGR) of about 59 per cent in attracting real estate investments during the decadal period of 2005-06 and 2014-15 followed by Karnataka (40 per cent) and Uttar Pradesh (32 per cent), noted the ASSOCHAM study.
Growth in real estate investments attracted by Haryana declined by over five per cent during this period, while West Bengal registered about four per cent fall in growth by Madhya Pradesh (three per cent).
Realty projects in Andhra Pradesh are facing maximum delay of about 45 months followed by Madhya Pradesh (41 months), Telangana (40 months) and Punjab (38 months).
