Projects Worth Rs 14.5 Lakh Crore Live Across India: Report

As far as the growth in real estate and construction is concerned, the period between 2011 and 2016 remained lackluster, shows a study by the Associated Chambers of Commerce and Industry (Assocham). The study by the industry body, titled Construction and real estate investment: State-level analysis, also reveals names of those states which held the fort during this period.

A look at the key findings of the report:

Up and running

Currently, there are about 3,489 live real estate projects worth Rs 14.5 lakh crore across India.  According to the study, 90 per cent of investments are concentrated in top 10 states.

Who's got the lion's share?

Data till December 2016 show Maharashtra, Uttar Pradesh and Gujarat together account for over half of the total real estate investments. While Maharashtra contributed 25 per cent to the total investments, UP and Gujarat contributed 13 per cent each. The share of Karnataka stood at 10 per cent, followed by Haryana at nine per cent.

Also read: Average Project Delay In Punjab Is 4 Years, Highest In India: Assocham

The growth figures

Between 2011 and 2016, the sector clocked compound annual growth rate (CAGR) of minus 0.7 per cent while the new investment recorded negative growth between 2011 and 2015. Investments saw a spike in 2016, with 32 per cent growth.

Among states, Odisha recorded highest CAGR of about 37 per cent in investments during 2011-16, followed by UP's nine per cent, Maharashtra's three per cent, Kerala's 1.6 per cent and Andhra Pradesh's 1.4 per cent. Other states clocked negative growth in investment during the period, the study says.

Inching closer

While noting that 70 per cent of real estate projects remained non-starter in India since 2013, the study says that significant growth has also been recorded in projects that remained under different stages of — construction  from 63 per cent in 2009 to about 77 per cent in 2015. This growth moderated to 72 per cent in 2016.

A state–wise comparison shows that over 95 per cent of projects are under implementation in West Bengal, followed by UP's 90 per cent and Punjab's 88 per cent.

Dealing with delays

Of the 2,300 ongoing projects, 886 projects are facing an average delay of 39 months. The report points out that 93 per cent of these projects are in the housing sector while remaining are commercial projects. It seems private players are faring quite poor when it comes to implementation — more than 95 per cent of the delayed are being run by private developers.

State-wise, Punjab is the worst performers when it comes to project delays. Real estate projects in Punjab, a state that boasts it was the first to introduce a single-window clearance system, are facing the biggest delays to the tune of 48 months, followed by Telangana (45 months), West Bengal, Odisha and Haryana (44 months each).

Also read: Property Investments Set To Rise As Real Estate Law Comes Into Force