Maharashtra, Uttar Pradesh and Gujarat together make up for over half of the total investments worth more than Rs 12 lakh crore in the realty sector from private players - including domestic and foreign.
“UP has managed to increase its share in private investments in real estate sector to 16 per cent in 2014—15, from 0.1 per cent in 2004—05,” an Assocham report said.
The report titled ‘Real estate investment: State—level analysis’ by the Associated Chambers of Commerce and Industry of India (Assocham) said the share of private investment in the realty sector in Gujarat went up by about 10 per cent last decade.
In the case of Maharashtra, it has slipped to 22 per cent in 2014—15, from 25.5 per cent in 2004—05.
Within states, private players accounted for over 98 per cent of total investments by the real estate sector in UP whereas it stood at 92 per cent for Gujarat and 89.5 per cent for Maharashtra.
Of the total investments worth over Rs 14 lakh crore across India in 2014—15, private and public investors chipped in with about 85 per cent and 15 per cent, respectively, the report said.
“Improving macroeconomic conditions, enabling policy environment, recovering demand, attractive valuations and increasing capital requirements of the real estate sector have lured private players over the years,” Secretary General of Assocham D S Rawat said during the release of the report.
“With the Centre liberalising FDI rules in the realty and construction sector, we are hopeful that it will lift the affordable housing space, revive steel, cement and other related sectors, revive employment scenario and boost GDP growth.”
He said Karnataka alone received over 38 per cent of the total investments made by the public sector across India, followed by Maharashtra at 14.5 per cent and Gujarat at 7 per cent.
Intra—state, the public sector accounted for the highest share of 99 per cent of total investments in realty in Jammu and Kashmir.
Over 75 per cent of the total real estate projects in India remained non—starter as of 2014—15 while a whopping 99 per cent in Andhra Pradesh remained stuck due to various issues.