States such as Andhra Pradesh, Punjab, West Bengal, Kerala, Odisha, Rajasthan and Madhya Pradesh received more than 1% share in total investment
NEW DELHI: Maharashtra has attracted the highest investment in the real estate and construction sector among the 21 major states in the country, accounting for 24.5% of the total investment, worth Rs 3.6 lakh crore as of December 2016, according to industry body Assocham.
Uttar Pradesh received the second highest investment share of 13.4%, worth Rs 1.94 lakh crore, followed by Gujarat with 12.8% share worth Rs 1.86 lakh crore. Karnataka, Haryana, Telangana and Tamil Nadu accounted for 10.1%, 8.8%, 6.2% and 5.6% shares of the total investments till 2016.
About 3,489 projects worth Rs 14.5 lakh crore investments were live in the construction and real estate sector across India till December 2016, according to the report titled ‘Construction and real estate investment: State-level analysis’.
States such as Andhra Pradesh, Punjab, West Bengal, Kerala, Odisha, Rajasthan and Madhya Pradesh received more than 1% share in total investment.
Uttarakhand, Chhattisgarh, Bihar, Jharkhand, Assam and Himachal Pradesh have
almost negligible investment in construction & real estate sector, with combined share standing at 0.9% of the total outstanding investments.
“This indicates that almost 90 percent of construction & real estate sector investments are concentrated in the top 10 states,” said the report.
Investment in the construction & real estate sector registered a downfall during the 2010 to 2016 period. The growth rate was highest at 13.5% in 2010, thereby falling in 2011, 2012 and 2013 at 6.3%, 0.7% and -7.6%, respectively. The investment recorded a positive growth rate of 2.6% in 2014 but fell again in 2015 to record a negative growth rate of 1.6%. The year 2016, however, registered a positive growth rate of 2.5%, according to Asssocham.
Odisha recorded the highest compounded annual growth rate (CAGR) in investments in the construction and real estate sector with 36.9% during 2011 to 2016, followed by Uttar Pradesh with 9%, Maharashtra with 2.9%, Kerala with 1.6% and Andhra Pradesh with 1.4% growth rate.
Telangana, Tamil Nadu, Karnataka, Gujarat, West Bengal, Haryana, Punjab, Rajasthan and Madhya Pradesh registered negative CAGR during 2011 to 2016.
Walls N Roof Comment : Maharashtra has always been the investment hotspot in the real estate sector. As of year 2016, Maharashtra has received the highest realty investment and same can attributed to infrastructural developments and inclusion of cities in the Smart City mission. Pune, Mumbai, Thane and Navi Mumbai have witnessed surreal transformations. Given the boost and infra development in pipeline other states will also witness a growth eventually.