Realty: Outlook for 2014 By ASSOCHAM.


Real Estate Investment dips 6% in top 20 states

The outstanding investments attracted by the Indian real estate sector across top 20 states of India dipped 6% between September 2012 and 2013 from over Rs. 15.39 lakh crore to Rs. 14.51 lakh crore, according to industry body ASSOCHAM.

The Indian real estate sector suffered turbulence in 2013 due to economic slowdown both globally & domestically, liquidity crunch, unstable currency, high input costs, labour shortage, high interest rates and growing inflation, according to industry body’s analysis –‘Real Estate Sector: Outlook for 2014’.

Outstanding investments include all projects under various stages of announcement or implementation.

Jharkhand, Haryana, Madhya Pradesh and Andhra Pradesh have seen decline in investment inflows in the real estate sector during the same time.

On the other hand, Bihar, Jammu and Kashmir, Assam, Orissa and Uttar Pradesh have seen a surge in investments attracted by real estate sector, the report said.


Of the total investments, Maharashtra accounted for 20% investments, Gujarat 13%, Haryana 11.2 %, Karnataka 11.1%, Uttar Pradesh 9.8 % and AP 9.6% as of September 2013.

The report said there has been a lull in the real estate sector in AP since September 2011, when the sector attracted investments of over Rs. 1.47 lakh crore.

In AP, about 72 per cent of total outstanding investments in the realty sector were under implementation as of September 2013 while nationally over 68 per cent of total investments were under implementation.

To perk up the real estate sector, ASSOCHAM suggested a single window clearance system to clear projects instead of seeking approvals of from regulators and multiple authorities to save time and costs. It also suggested that the limit of interest deduction on housing loan should be increased to Rs. 5 lakh from Rs. 1.5 lakh.

Among others, ASSOCHAM also suggested industry status to real estate sector to facilitate bank loans and long-term finance for real estate projects.

Real estate should be classified as infrastructure and priority lending sector should be made available to keep pace with demand-supply scenario, it said.


Share:

1 comment:

  1. This is very nice blog and have great information. I have also avail information about the new project Lodha Lakeshore Greens, Dombivali, Mumbai. Find More information of this Project like Specifications, price list, resale, Prices on Favista.com.Lodha Lakeshore Greens Mumbai

    ReplyDelete

Popular Posts

Blog Archive

Recent Posts

Featured Post

Suitable for Salaried & First-time investors. - Bajaj Finserv ELSS Tax Saver Fund..!

  Suitable for Salaried & First-time investors. - Bajaj Finserv ELSS Tax Saver Fund..! An open-ended equity linked saving schem...