Realty investments across country halve in FY13

States across India attracted Rs 42,000 cr in real estate, down 56% from Rs 92,000 cr the previous year

New investments in Tamil Nadu's realty sector have dropped by 75 per cent to just over Rs 3,300 crore from over Rs 13,600 crore during the period ranging between 2011-12 and 2012-13, according to apex industry body Assocham. However, Tamil Nadu has ranked third with a share of about eight per cent in the total value of new investments attracted by realty across India during the last fiscal, according to a real estate sector-specific analysis carried out by The Associated Chambers of Commerce and Industry of India (Assocham).

“States across India attracted new investments worth over Rs 42,000 crore in the real estate sector during 2012-13, which declined from over Rs 92,600 crore in 2011-12,” said D S Rawat, national secretary general of Assocham while releasing the chamber’s analysis.

Tamil Nadu has attracted outstanding investments worth over Rs 88,600 crore as of March 2013 and accounts for over six per cent share in total outstanding investments attracted by real estate sector across India.

Outstanding investments in real estate have risen by over 25 per cent throughout the country during the five year period of 2008-09 and 2012-13 while it grew by about 22 per cent in Tamil Nadu, further highlighted the Assocham analysis.

The reported noted, while most of the States have seen a decline in attracting new investments, Gujarat has seen a surge of over 700 per cent as the state has attracted investments worth over Rs 17,000 crore as of March 2013 from just over Rs 2,000 crore a year ago.

“Kerala is another state which has seen massive growth of over 550 per cent in attracting new investments in real estate followed by Uttarakhand (400 per cent) and Rajasthan (175 per cent),” said Mr Rawat. “While almost rest of the states have seen a drop of over 50 per cent in new investments in the realty sector during the aforesaid period.”

While, Gujarat has maximum share of about 41 per cent in the new investments attracted by the real estate sector across India, the states of Maharashtra (over 17 per cent), Karnataka (10 per cent), Tamil Nadu (eight per cent) and Uttar Pradesh (over six per cent) are amid top five states with maximum share in this regard, highlights the Assocham analysis.