Realty Investment Fell Sharply, ASSOCHAM

Realty Investment in India Witnesses Sharp Decline

ASSOCHAM Reports Significant Drop in Realty Investment

India received a total of Rs.122 lakh crore in investments last year, with realty investment contributing a mere Rs.42,000 Cr, a substantial decline from the previous year.

Comparison with Previous Year

  • 2012: India received Rs.92,600 Cr in realty investment
  • Last Year: Realty investment fell to Rs.42,000 Cr, less than half of the previous year's amount

Image: Realty Investment Has Fallen Sharply in India

Top Performing States

Despite the overall decline, some states demonstrated impressive growth in realty investment:

  1. Gujarat: Received Rs.17,000 Cr, marking a 700% growth rate
  2. Kerala: Witnessed a 550% growth rate, securing the second position
  3. Uttarakhand: Achieved a 400% growth rate, ranking third
  4. Rajasthan: Recorded a 175% growth rate, placing fourth

Causes of Decline in Realty Investment

  • Slowdown in Price Hike: Despite a 10 to 20 times increase in prices over the last decade, the last two years saw a slowdown in price hikes
  • Weak Home Sales: High prices, beyond the reach of most Indian buyers, led to weak home sales, affecting investor sentiment
  • Sluggish Realty Market: The overall slow momentum of the realty market drove investors away

Image: India Sees Fall of Realty Investment

Expert Insights

  • D.S. Rawat, National Secretary General, ASSOCHAM: 'Realty investment fell in most states, with Gujarat and Kerala being exceptions, witnessing significant growth rates of 700% and 550%, respectively.'

Key Statistics

  • Total Investment in India (Last Fiscal): Rs.122 lakh crore
  • Realty Investment Contribution: A mere 11% of the total investments