Tamil Nadu Attracts Only 8 % investment in real estate..!



Gujarat has seen a surge of over 700 %..!

The state of Gujarat has maximum share of  41% in the new investments attracted by the real estate sector across India during the last fiscal, as per apex industry body study.

"The real estate sector in India attracted new investments worth above 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 % 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 study on recently.

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

Apart from Gujarat, the states of Maharashtra (over 17 %), Karnataka (10 %), Tamil Nadu (8 %) and Uttar Pradesh (over 6 %) are amid top five states with maximum share in new investments attracted by real estate sector across India, highlights the ASSOCHAM analysis.

Besides, with a share of about 15 %, Gujarat is second only to Maharashtra which has maximum share of about 20 % 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 % during the last fiscal. Maharashtra has attracted outstanding investments worth about Rs. 3 lakh crore in the real estate sector as of March 2013 but the new investments in the sector dipped from over Rs.16,000 crore to just over Rs. 7,000 crore during the course of last one year (2011-12 and 2012-13).

"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 and private sources across India," said Mr. Rawat.

Maharashtra, Gujarat, Haryana, Karnataka & Andhra Pradesh are the top 5 states with highest share for attracting maximum outstanding investments in the real estate segment across India. Besides, these five states account for over 70 % of the total outstanding investments attracted by realty sector across India. Outstanding investments in real estate have risen by over 25 % throughout the country during the five year period of 2008-09 and 2012-13, further highlighted the ASSOCHAM analysis.

According to Mr. Rawat, the real estate sector in India has been plagued with serious problems of late like 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 of their land to reduce debt, private equity players have trimmed their exposure in realty sector and general slowdown in various industries has hit commercial real estate.

However, certain positive developments like parliament's approval of foreign direct investment ( FDI) in multi-brand retail would help attract foreign investments and give a fillip to the retail industry and simultaneously boost the demand for commercial real estate in the country.

Investment in Real Estate..!

Gujarat 700 %
Kerala   550 %
Uttarakhand 400 %
Rajasthan  175 %
Maharashtra  17 %
Karnataka 10 %
Tamil Nadu 8 %
Uttar Pradesh  6 %

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