Over 75% real estate projects non-starters: Assocham study
“Over 75% 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% 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%) in the total outstanding investments attracted by real estate sector, followed by Uttar Pradesh (14%), Gujarat (13%), Karnataka (12%) and Haryana (8%).
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% in the total outstanding investments attracted by the sector.
Kerala recorded highest compounded annual growth rate (CAGR) of about 59% in attracting real estate investments during the decadal period of 2005-06 and 2014-15 followed by Karnataka (40%) and Uttar Pradesh (32%), it said.
Growth in real estate investments attracted by Haryana declined by over 5% during this period, while West Bengal registered about 4% fall in growth, followed by Madhya Pradesh (3%), it added.