Investments attracted by the state’s real estate sector from public and private sources have declined at a compounded annual growth rate (CAGR) of 29% in the past four years, industry body Assocham said on Thursday.
CAGR is an indication of the rate of growth of an investment during a given period of time.
“Investments made by private sources had declined by a whopping 40% between 2011-12 and 2014-15,” DS Rawat, national secretary general of Associated Chambers of Commerce and Industry of India, said on Thursday.
He said though projects with a majority share of 66% investments in the real estate sector attracted by the state were under different stages of implementation, projects with about 34% investments had turned out to be non-starters as of 2014-15 and the share of such projects had increased significantly from about 12% as of 2011-12.
According to the report on the sector-specific survey conducted by Assocham, the investments have come down from Rs 46,940 crore in 2011-12 to just about Rs 16,790 crore in 2014-15.
The report, released on Thursday, noted: “In year-on-year terms, realty sector investments attracted by MP have dropped by over 24% from Rs 22,170 crore in 2013-14 to Rs 16,790 crore in 2014-15.”
The survey said ownership-wise, government sources accounted for a major share of 54% of the total investments attracted by the real estate sector in the state while private players accounted for the remaining share.
Maharashtra (21%) and Uttar Pradesh (14%) saw the maximum rise in real estate investments while Jharkhand (40%) and Himachal Pradesh (37%), followed by Madhya Pradesh (29%) saw the highest fall in investments.