GUWAHATI, Oct 25 - A huge proportion of total outstanding investments attracted by the real estate sector across India remained a non-starter, even as Assam and some other states have almost negligible investment in the real estate sector, according to a study by industry chamber ASSOCHAM.
�The analysis suggests that more than 75 per cent of real estate investment projects are non-starters (under implementation rate) in India as on 2014-15. The noticeable point is that the sector�s investment under implementation rate has recorded an upward trend over the years. In India, the under implementation rate has increased from 59.1 per cent in 2005-06 and has reached its peak level in 2014-15,� said a study, �Real Estate Investment: State Level Analysis�.
It added, �Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Odisha and Uttarakhand together accounted for negligible share of less than even two per cent in the total outstanding investments attracted by the sector.�
According to ASSOCHAM, the low figure indicates that real estate investment is not taking place in many prominent states of India.
Over 75 per cent of the total 3,540 live projects with total outstanding investments worth over Rs 14,00,000 crore attracted by the real estate sector across India remained non-starters as of financial year 2014-15, it said.
�While over 2,300 projects in the realty sector remained non-starters, over 1,000 on-going projects have registered significant delay in completion,� highlighted the study.
It said, �With 964 projects, the domestic private sector accounted for 95 per cent share in real estate projects facing delays, followed by public sector (49 projects) and foreign private companies (six projects). On an average, real estate projects in India are facing a delay of 33 months in completion.�
Commenting on the findings, DS Rawat, secretary general of ASSOCHAM, said, �We urge the government to pass the long-pending Real Estate (Regulation and Development) Bill on an urgent basis as it would help in resolving the key issues that are hampering the growth of the sector.�
As per the report, Maharashtra alone accounts for over one-fifth share (20.9 per cent) in the total outstanding investments attracted by the real estate sector throughout India, followed by UP (13.8 per cent), Gujarat (12.7 per cent), Karnataka (12.3 per cent) and Haryana (7.9 per cent). Tamil Nadu and Telangana accounted for over six per cent share each in terms of total outstanding investments garnered by the realty sector. Assam�s share on its own was as low as 0.1 per cent.
