Maharahstra accounts for 25% of investments in real estate, construction sectors: Study

Maharashtra accounts for nearly 25 percent of the total investments attracted by real estate and construction industry in India, showed a recent study by industry body Assocham.

PTI| Updated: May 09, 2017, 18:58 PM IST
Maharahstra accounts for 25% of investments in real estate, construction sectors: Study

Mumbai: Maharashtra accounts for nearly 25 per cent of the total investments attracted by real estate and construction industry in India, showed a recent study by industry body Assocham.

According to the study, there are about 3,489 projects worth Rs 14.5 lakh crore in the construction and real estate sectors that are currently on going in the country.

"While Maharashtra alone accounts for a lion's share of about 25 percent in total investments attracted in the two sectors as of December 2016, Uttar Pradesh and Gujarat, each account for 13 per cent," the study noted.

Karnataka's share is 10 per cent, while Haryana accounts for nine per cent, it said.

"The Centre and state governments must introduce a single-window clearance system at the earliest to avoid time and cost overruns that are impacting the growth and development of real estate sector in India," Assocham national secretary general D S Rawat said.

He said the government should also grant industry status to the real estate sector to counter the apathy of banks in financing realty projects.

"As for the sector, the companies in the real estate space must keep looking for long-term financial resources to become independent," he added.

"So far as the investment growth trend in this sector is concerned, the sector touched highest rate of 13.5 per cent in 2010 but recorded sharp downfall till 2013 whereby it recorded negative growth of about eight per cent but it picked up in 2014 to reach about three per cent and again fell in 2015," the study stated.

According to it, among states, over 95 per cent of realty investment projects are under implementation in West Bengal followed by Uttar Pradesh (90 per cent) and Punjab (88 per cent).

"As such of over 2,300 construction and real estate projects that are under-implementation, 886 projects are facing an average delay of 39 months and about 93 per cent of these projects are in the housing sector while rest are commercial complex," Rawat said.

More than 95 per cent of delayed 886 projects are accruing to private sector ownership while public sector ownership has only 41 such projects, it said.

Real estate projects in Punjab are facing maximum delays to the tune of 48 months followed by Telangana (45 months), West Bengal, Odisha and Haryana (44 months), the study said.