According to a recent report issued by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Gujarat emerged as the leading destination for real estate investment in the previous fiscal year.
AHMADABAD: Characterized by its appeal for investors, Gujarat has solidified its position as a prime locality for realty investments, as substantiated by the findings within the ASSOCHAM report.
The report highlights that Gujarat attracted the largest slice of realty investments in the last fiscal year, accounting for nearly 41 percent of the total investments in this sector across India.
In the previous fiscal year, an impressive Rs.42,000 crore was invested in real estate nationwide. Of this staggering total, Gujarat alone secured Rs.17,000 crore.
However, it's important to note that, according to industry leaders, the overall investment in the previous year was considerably lower compared to previous periods. In the year prior, investments in the realty sector nearly reached Rs.92,600 crore.
Despite the downward trend in investments nationwide, Gujarat demonstrated remarkable growth, experiencing a phenomenal increase of 700 percent, from Rs.2,000 crore to Rs.17,000 crore.
While many states faced declining investment trends, Gujarat was a notable exception, emphasized ASSOCHAM’s national Secretary-General D.S. Rawat during the release of their comprehensive study report.
Other states also enjoyed investment boosts; Kerala, for example, saw a 550 percent increase. Uttarakhand came in third with a growth rate of 400 percent, while Rajasthan followed with a 175 percent increase.
Most other regions, however, reported a downturn in investments, with significant drops observed in several states exceeding 50 percent.
Realty investments contribute over 11 percent to India's total investments, according to Rawat. Overall, the total investment in the fiscal year, encompassing all sectors, amounted to Rs.122,00,000 crore, inclusive of both public and private sector involvement.
The decrease in nationwide realty investment is primarily attributed to sluggish market conditions and reduced home sales. Contributing factors such as elevated interest rates and rising construction costs have also adversely affected investor confidence.