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Gujarat's Realty Sector Attracts 41 Percent New Investments


In the real estate sector across India, Gujarat has attracted a huge share of 41 percent in the new investments during the last fiscal, according to a survey conducted by Associated Chambers of Commerce and Industry of India (ASSOCHAM), reports Times of India.

"The realty sector in India attracted new investments worth over 42,000 crore as of March 2013 which slipped from over 92,600 crore a year ago," according to a real estate sector specific analysis ASSOCHAM.

 “While most states have seen a decline in new investments in realty, Gujarat has seen a surge of over 700 percent, as the state attracted investments worth over 17,000 crore as of March 2013, from just over 2,000 crore a year ago,” said D S Rawat, national secretary general of ASSOCHAM.

"Kerala is another state which has seen massive growth of over 550 percent in attracting new investments in real estate followed by Uttarakhand (400 percent) and Rajasthan (175 percent). While almost rests of the states have seen a drop of over 50 percent in new investments in the realty sector during the aforesaid period," added Rawat.

Other major Indian states like Maharashtra, Karnataka, Tamil Nadu and Uttar Pradesh witnessed the maximum new investments share of over 17 percent, 10 percent, 8 percent and 6 percent, respectively.

“The real estate sector in India has, of late, been plagued by serious problems like falling sales, rising construction costs, dampened market sentiment overall, sluggish economic growth, high interest rates, high inflation and poor industrial production (IIP) due to which leading players had to sell off land to reduce debt, private equity players trimmed exposure to the realty sector and a general slowdown in various industries hit commercial real estate,” said Rawat.