<div>The Narendra Modi-led National Democratic Alliance (NDA) government has taken many steps to create an environment of growth for the real estate sector. In June, Prime Minister Narendra Modi launched three government schemes-the Smart Cities mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All mission at an expected cost of around Rs 4 lakh crore. </div><div> </div><div>The Housing for All scheme aims to provide at least 20 million homes to lower-income earners. These apart, a real estate bill that is aimed at primarily protecting consumer rights is also waiting to be cleared.</div><div> </div><div>Market watchers say the NDA government wants to regulate property markets and tie investor money to specific projects to stop developers diverting cash elsewhere. The slowdown around Delhi and other metropolis, where unsold inventory is highest, shows no sign of abating, however.</div><div> </div><div>So far, the deepening downturn in real estate makes it easily understandable why Modi's image as the country's economic saviour has lost its lustre just over a year after his resounding election victory.</div><div> </div><div>Indebted developers are cutting staff as they slow work on existing projects and postpone new buildings. Around half a million workers lost their jobs from sites around Delhi in the last 18 months, in a stark sign that the ground reality in Asia's third-largest economy is far from as rosy as official data suggests. The decade-long construction boom in burgeoning cities lured millions of labourers from India's rural hinterlands in search of a better life, creating one in every three new jobs. That process is now going into reverse, undermining Modi's promise to create more employment for the one million Indians who join the workforce every month, according to a report in <em>Reuters</em>.</div><div> </div><div>In May, the Centre relaxed rules to allow foreign funds to invest in real estate investment trusts (REITs), a move designed to revive the country's capital-starved property sector. The government also introduced REITs last year to pool in capital from overseas and help developers reduce their debt.</div><div> </div><div>Of late, debt-laden property developers are turning to deep discounts, free parking spots and even gimmicks like gifts of gold coins and motorbikes ahead of Diwali as they struggle to sell billions of dollars worth of as-yet unfinished homes.</div><div> </div><div>According to a latest study by apex industry body Assocham, over 75 per cent of the total 3,540 live projects, with total outstanding investments worth over Rs 14 lakh crore attracted by the real estate sector across India, remained non-starter as of financial year 2014-15. </div><div> </div><div>As per the study, while over 2,300 projects in the realty sector remained non-starters, over 1,000 on-going projects have registered significant delays in completion.</div><div> </div><div>"With 964 projects, domestic private sector accounted for 95 per cent share in real estate projects facing delays followed by public sector (49 projects) and foreign private companies (six projects)," noted the study prepared by the Assocham Economic Research Bureau (AERB).</div><div> </div><div>"On an average, real estate projects in India are facing a delay of 33 months in completion," said D S Rawat, secretary general of Assocham while releasing the findings of the chamber's study. "We urge the government to pass the long-pending Real Estate (Regulation and Development) Bill on an urgent basis as it would help in resolving the key issues that are hampering the growth of the sector," said Rawat.</div><div> </div><div>Maharashtra alone accounts for over one-fifth share (21 per cent) in the total outstanding investments attracted by real estate sector throughout India followed by Uttar Pradesh (14 per cent), Gujarat (13 per cent), Karnataka (12 per cent) and Haryana (eight per cent) that are amid top five states in this regard.</div><div> </div><div>Tamil Nadu and Telangana accounted for over six per cent share each in terms of total outstanding investments garnered by realty sector in the country.</div><div> </div><div>Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Odisha and Uttarakhand together accounted for negligible share of less than even two per cent in the total outstanding investments attracted by the sector.</div><div> </div><div>Kerala has recorded highest compounded annual growth rate (CAGR) of about 59 per cent in attracting real estate investments during the decadal period of 2005-06 and 2014-15 followed by Karnataka (40 per cent) and Uttar Pradesh (32 per cent), noted the Assocham study.</div><div> </div><div>Growth in real estate investments attracted by Haryana declined by over five per cent during this period, while West Bengal registered about four per cent fall in growth by Madhya Pradesh (three per cent).</div><div> </div><div>Realty projects in Andhra Pradesh are facing maximum delay of about 45 months followed by Madhya Pradesh (41 months), Telangana (40 months) and Punjab (38 months).</div><div> </div><div>At present, the moot question is: will the Indian property market get back to its heyday of 2007-08?</div>
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