New investment in real estate have fallen down to Rs.42,000 crore from Rs.92,600 crore a dip of 55% in the year ended 31 March when compared to the same period last year, according to a study by the Associated Chambers of Commerce and Industry of India (Assocham) lobby group. The reason being the falling sales, rising construction costs, sluggish economic growth and high interest rates, it said. Gujarat, Kerala, Uttarakhand and Rajasthan fared better than other states in attracting new investment.
In order to reduce their debts leading players in the sector have to sell their property to overcome the losses, D S Rawat, secretary general, Assocham said. Maharashtra topped the list in total outstanding investment worth more than Rs.14 trillion with a maximum share of about 20 percent.