Indian Realty Face Sharp Fall of Investment

According to the latest report of ASSOCHAM, Indian realty has faced a severe fall of investments.

Is not Indian realty as hot as it used to be? The report of Associated Chambers of Commerce and Industry of India may raise this question in your mind. As per the report, Indian realty saw a deep fall of investment.

According to the report of the apex body of industry, Indian realty received Rs.42,000 Cr in the last fiscal. The amount seems not so bad. Well, now you have to see how much was invested in the previous year.

In the previous year, Rs.92,600 Cr was invested in the realty market of India. Now you say whether Indian realty is as hot as it was before. Overall investments in India reached Rs.122 lakh crore.

Most of the states witnessed a steady fall. A few states like Gujarat, Kerala, Uttarakhand and Rajasthan remained exceptions to this.

Of the total investment of Rs.42,000 Cr, Rs.17000 Cr was invested in Gujarat alone. Thus the state holds almost 40 percent of total investments.

In 2011, only Rs.2000 Cr was invested in the state. It means that the state has achieved a growth rate of around 700 per cent. Kerala is the second best state in the list. The growth rate in the state is 550.

The list is followed by Uttarakhand and Rajasthan. While the former saw growth by 400 percent, the same in the latter is 175 percent. None of the remaining states could attract investors.

On the other end, these states have seen fall of investments by over 50 percent. This disappointed Indian realty as well.

Commenting on the fall of realty investment, the experts say that this is due to the weak home sales. Sluggish market is another important factor which hurt the investors’ sentiments.

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