Although Gujarat has attracted the third highest share of investments in real estate across India, investments dipped by 22 per cent in the last four years in this western state.

Investments in real estate sector from various public and private sources in Gujarat have declined from Rs 2.3 lakh crore in 2011-12 to about Rs 1.8 lakh crore in 2014-15, apex industry body Assocham said on Thursday.

On a year-on-year (y-o-y) basis, however, investments attracted by realty sector in Gujarat have increased slightly by 1.6%, from Rs 1.80 lakh crore as of 2013-14 to Rs 1.83 lakh crore in 2014-15, according to the sector-specific survey conducted by The Associated Chambers of Commerce and Industry of India (Assocham).

“Ownership-wise, private sector accounted for the lion’s share of 92% of the total investments attracted by the real estate sector in Gujarat while government/public sources accounted for the remaining 8%,” said D.S. Rawat, Secretary- General, Assocham, while releasing the findings of the Chamber’s analysis.

But a majority of projects with about 72 per cent investments in real estate sector attracted by Gujarat have remained non-starter as of 2014-15 and share of such projects has increased significantly from 53% in 2011-12, he said.

Investments in real estate sector from various public and private sources across India have declined by 6% in past four years, from Rs 15.2 lakh crore in 2011-12 to about Rs 14.3 lakh crore in 2014-15, according to the analysis carried out by the Assocham Economic Research Bureau (AERB).

However, there has been a slight increase of just over 2% year-on-year in the investments attracted by realty sector, from Rs 14 lakh crore in 2013-14 to Rs 14.3 lakh crore in 2014-15.

Private sector accounted for the lion’s share of 85% of the total investments attracted by the real estate sector across India while government/public sources accounted for the remaining share. Real estate projects with about 76% of the total investments attracted by the sector across India remained non-starter as of the aforesaid period.

Maharashtra (21%), Uttar Pradesh (14%), Gujarat (13%), Karnataka (12%) and Haryana (8%) are the top five states with highest share in total investments attracted by the real estate sector in India in 2014-15.

Clocking a compounded annual growth rate (CAGR) of about 82%, Assam recorded the maximum growth in attracting investments in the real estate sector during 2011-12 and 2014-15, followed by Bihar (19%), Odisha (17%), Uttar Pradesh (16%) and Uttarakhand (12%) amid top five states in this regard.

Jharkhand (40%), Himachal Pradesh (37%), Madhya Pradesh (29%) and Haryana (16%) have registered maximum fall in real estate investments.

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