Over 75 per cent of 3,540 live real estate projects with outstanding investments of more than Rs 14 lakh crore remained non—starters as of 2014—15, an Assocham study said.
“Over 75 per cent of total 3,540 live projects with total outstanding investments worth over Rs 14 lakh crore attracted by the real estate sector across India remained non—starters as of financial year 2014—15,” said an Assocham study.
As per the study, while over 2,300 projects in the realty sector remained non—starters, over 1,000 on—going projects have registered significant delays in completion.
With 964 projects, 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.
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 two 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.