AHMEDABAD: Although Gujarat has seen no new investments in the realty sector in the first
quarter of 2013-14, the State topped a list of 20 States in the country with 35 per cent completed projects in the sector during this quarter, apex industry body Assocham said on Monday.
“Gujarat has registered completion of real estate projects worth about Rs 1,035 crore in the first quarter in the current financial year as against Rs 39 crore worth of realty projects completed during the corresponding period of last year,” according to a paper released by The Associated Chambers of Commerce and Industry of India (Assocham).
Real estate projects worth over Rs 2,971 crore were completed during Q1FY14 across India, a year-on-year growth of over 50 per cent in the rate of project completion as realty projects worth only Rs 1,976 crore were completed in Q1FY13, said D.S. Rawat, Secretary-General, Assocham.
However, Gujarat has absolutely no share in new investments worth about Rs 5,884 crore attracted by the real estate sector in Q1FY14 across top 20 States, although the State had attracted new investments worth about Rs 500 crore in real estate sector in Q1FY13.
Interestingly, the total investments in the real estate sector across India had dipped by over 50 per cent during the last one year as the top 20 States attracted new investments worth over Rs 11,905 crore in Q1FY13.
With a share of over 15 per cent in total outstanding investments worth over Rs 14 lakh crore attracted by the top 20 States in the real estate sector as of June 2013, Gujarat ranks second with outstanding investments worth over Rs 2.1 lakh crore in the realty sector.
With real estate projects worth over Rs 1.1 lakh crore under implementation in Gujarat as of June 2013, the state commands a share of about 13 per cent in realty projects worth Rs 9.4 lakh crore under implementation across the top 20 States of India.
“Rapid urbanisation, positive demographics, the growing trend of nuclear families, rural-urban migration, infrastructure development, rising income levels and housing demand are driving real estate growth and development in India. The sector contributes about 6.3 per cent to India’s gross domestic product (GDP) and annually generates about eight million direct and indirect jobs,” said Rawat.
India’s construction sector comprising of townships, housing, built-up infrastructure and construction development projects has attracted cumulative foreign direct investment (FDI) worth over $22 billion during the April 2000-June 2013 period.
Maharashtra alone accounts for the highest share of about 20 per cent with outstanding investments worth about Rs three lakh crore in the real estate sector, followed by Gujarat (15 per cent), Haryana (12 per cent), Karnataka (12 per cent), Uttar Pradesh (10 per cent) and Andhra Pradesh (10 per cent), Assocham added.