New Investments In Real Estate Sector : Tamil Nadu's share 17%..

Uttar Pradesh has been ranked top with maximum share of nearly 40% in the new investments attracted by real estate sector among top 20 states across the country during the first quarter of current fiscal, industry body The Associated Chambers of Commerce and Industry of India (ASSOCHAM) said  recently.

Interestingly, the total new investments in real estate sector across India had dipped by over 50% during the course of last one year.

The top 20 states of India had attracted new investments worth over Rs. 11,905 crore in the Q1 of FY 12-13 as against Rs. 5,884 worth of new investments in Q1 of this fiscal.

"Uttar Pradesh has attracted new investments in the real estate sector worth nearly Rs. 2,350 crore in Q1 of FY 13 -14 as against Rs. 1,500 crore worth of new investments attracted by the state during corresponding period of last year," according to a paper titled 'Current State of Real Estate Sector in India and It's Revival,' released by ASSOCHAM.

However, timely completion of ongoing projects has remained a major concern for a long-time in the state, said Mr. D.S. Rawat, national secretary general of ASSOCHAM, while releasing the chamber's paper.

"Real estate projects worth over Rs. 2,971 crore got completed during the Q1 of FY 13 -14 across India, thereby registering above 50% growth in rate of project completion as real estate projects worth only Rs. 1,976 crore had got completed in Q1 of the previous financial year" Mr. Rawat said.

"With a share of nearly 10 % in total outstanding investments worth over Rs. 14 lakh crore attracted by top 20 states in the real estate sector as of June 2013, Uttar Pradesh ranks 5th with outstanding investments worth over Rs. 1.4 lakh crore in the real estate sector," Mr. Rawat said.

With real estate projects worth more than  Rs. 1.3 lakh crore under implementation in UP, the state commands a share of nearly 14% in real estate projects out of a total of over Rs. 9.4 lakh crore under implementation across top 20 states of the country, the ASSOCHAM paper said.

India's construction sector comprising of townships, housing, built-up infrastructure and construction development projects has attracted a cumulative foreign direct investment (FDI) of over USD 2,200  crore during April 2000-June 2013, highlighted the ASSOCHAM paper.

Maharashtra alone accounts for highest share of nearly 20% with outstanding investments worth nearly Rs. 3 lakh crore. It is followed by Gujarat (15%), Haryana (12 %), Karnataka (12 %), Uttar Pradesh (10 %) and Andhra Pradesh (10 %).

Followed by UP, the state of Maharashtra has acquired second highest share of 17% in attracting new investments in real estate sector in Q1 of FY 13 -14 followed by Tamil Nadu (17%), Uttarakhand (9%) and Karnataka ( 6%) that are amid top 5 states in this regard.

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