Maharashtra accounts for nearly 25 per cent of the total investments attracted by the real estate and construction industry in India, showed a recent study by industry body ASSOCHAM (The Associated Chambers of Commerce & Industry of India). According to the study, there are about 3,489 projects worth Rs 14.5 lakh crores in the construction and real estate sectors that are currently ongoing in the country.
“While Maharashtra alone accounts for a lion’s share of about 25 per cent, 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. According to the study, 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 complexes,” ASSOCHAM national secretary general, DS Rawat said. More than 95 per cent of the 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.
“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,” Rawat added. 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.
“As far as the investment growth in this sector is concerned, it touched the highest rate of 13.5 per cent in 2010 but recorded a sharp downfall till 2013, when it recorded a negative growth of about eight per cent. It picked up in 2014 to reach about three per cent and again fell in 2015,” the study stated.