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:
- Gujarat: Received Rs.17,000 Cr, marking a 700% growth rate
- Kerala: Witnessed a 550% growth rate, securing the second position
- Uttarakhand: Achieved a 400% growth rate, ranking third
- 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