Maharashtra: Rs. 3 lakh crore Investment in Real Estate Sector..!

Maharashtra accounted for about 20% of the total Rs. 14 lakh crore outstanding investments attracted by the real estate sector as of March 31, industry body Assocham has said.

The state attracted Rs. 3 lakh crore outstanding investments in the real estate sector as of March 2013, Assocham said in its report.

Real estate sector accounts for over 11% share in total outstanding investments worth over Rs. 1.22 crore attracted by different sectors from various public & private sources across India.

Maharashtra is one of the top 5 states, including Gujarat, Haryana, Karnataka & Andhra Pradesh, with the highest share for attracting maximum outstanding investments in the real estate segment across India, the report said.

However, new investments in the realty sector in Maharashtra plummeted by over 55% during 2011-12 and 2012-13, it added.

 Mr. D.S. Rawat, National Secretary General, ASSOCHAM (The Associated Chambers of Commerce and Industry of India) said, "New investments in the realty sector in Maharashtra dipped from over Rs. 16,000 crore to just over Rs. 7,000 crore during the period"

Currently, Maharashtra, Gujarat, Haryana, Karnataka and Andhra Pradesh account for over 70% of the total outstanding investments attracted by realty sector across India.

According to the report, outstanding investments in real estate have risen by over 25% throughout the country during the 5 year period of 2008 - 09 and 2012-13.

However, new investments in the real estate have dried by over 54% from during 2011-12 & 2012-13 across India as the sector has been jostling with slowing sales and rising inventories.

"The real estate sector in India has been plagued with serious problems of late such as falling sales, rising construction costs, dampened market sentiment overall, sluggish economic growth, high interest rates, high inflation and poor industrial production (IIP), due to which leading players in the sector had to sell off their land to reduce debt.

"Private equity (PE) players have trimmed their exposure in the realty sector & general slowdown in various industries has hit commercial real estate" Mr. D.S. Rawat said.

However, certain positive developments such as Parliament's approval of foreign direct investment (FDI) in multi-brand retail that would attract foreign investments would give a fillip to the retail industry &  simultaneously boost the demand for commercial real estate in India, Mr. Rawat added.

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