Interestingly, the total new investments in real estate sector across the country had dipped by over 50 per cent during the course of past one year.
The top 20 states of India had attracted new investments worth over Rs 11,905 crore in the Q1 of FY 12-13 as against Rs 5,884 worth of new investments in Q1 of this fiscal.
"Uttar Pradesh has attracted new investments in the real estate sector worth about Rs 2,350 crore in Q1 of FY 13-14 as against Rs 1,500 crore worth of new investments attracted by the state during corresponding period of last year," according to a paper titled 'Current State of Real Estate Sector in India and It's Revival,' released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
However, timely completion of ongoing projects has remained a major concern for a long-time in the state, said D S Rawat, national secretary general of ASSOCHAM, while releasing the chamber's paper.
"Real estate projects worth over Rs 2,971 crore got completed during the Q1 of FY 13-14 across India, thereby registering over 50 per cent growth in rate of project completion as realty projects worth only Rs 1,976 crore had got completed in Q1 of the previous financial year," Rawat said.
"With a share of about 10 per cent in total outstanding investments worth over Rs 14 lakh crore attracted by top 20 states in the real estate sector as of June 2013, Uttar Pradesh ranks fifth with outstanding investments worth over Rs 1.4 lakh crore in the realty sector,” Rawat said.
With real estate projects worth over Rs 1.3 lakh crore under implementation in UP, the state commands a share of about 14 per cent in realty projects out of a total of over Rs 9.4 lakh crore under implementation across top 20 states of the country, the ASSOCHAM paper said.
India's construction sector comprising of townships, housing, built-up infrastructure and construction development projects has attracted a cumulative foreign direct investment (FDI) of over USD 22 billion during April 2000-June 2013, highlighted the ASSOCHAM paper.
Maharashtra alone accounts for highest share of about 20 per cent with outstanding investments worth about Rs 3 lakh crore. It is followed by Gujarat (15 per cent), Haryana (12 per cent), Karnataka (12 per cent), Uttar Pradesh (10 per cent) and Andhra Pradesh (10 per cent).
Followed by UP, the state of Maharashtra has acquired second highest share of 17 per cent in attracting new investments in realty sector in Q1 of FY 13-14 followed by Tamil Nadu (17 per cent), Uttarakhand (nine per cent) and Karnataka (six per cent) that are amid top five states in this regard.