Over 75% of realty projects remain in limbo: Assocham
23 Oct 2015
Over 75 per cent of total of 3,540 live projects in the real estate sector across India, with total outstanding investments worth over Rs14 lakh crore remained non-starters as of financial year 2014-15, says an Assocham study.
As per the study, while over 2,300 projects in the sector remained non-starters, over 1,000 on-going projects have registered significant delays in completion.
With 964 projects, the domestic private sector accounted for 95 per cent share in projects facing delays, followed by public sector (49 projects) and foreign private companies (six projects), it said.
"On an average, real estate projects in India are facing a delay of 33 months in completion," Assocham secretary general D S Rawat said while releasing the report in New Delhi.
According to the study, realty projects in Andhra Pradesh are facing maximum delay of about 45 months followed by Madhya Pradesh (41 months), Telangana (40 months) and Punjab (38 months).
It said that Maharashtra alone accounts for over one-fifth share (21 per cent) in the total outstanding investments attracted by real estate sector, followed by Uttar Pradesh (14 per cent), Gujarat (13 per cent), Karnataka (12 per cent) and Haryana (8 per cent).
Tamil Nadu and Telangana accounted for over six per cent share each in terms of total outstanding investments garnered by realty sector in the country.
Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Odisha and Uttarakhand together accounted for negligible share of less than even 2 per cent in the total outstanding investments attracted by the sector.
Kerala recorded highest compounded annual growth rate (CAGR) of about 59 per cent in attracting real estate investments during the decadal period of 2005-06 and 2014-15 followed by Karnataka (40 per cent) and Uttar Pradesh (32 per cent), it said.
Growth in real estate investments attracted by Haryana declined by over 5 per cent during this period, while West Bengal registered about 4 per cent fall in growth, followed by Madhya Pradesh (3 per cent), it added.