Northern India faces ‘unpopular’ property investment tag
October 21, 2008 by OPPE News
Northern India could be falling out of favour with property investment professionals, according to a regional league table.
The Associated Chambers of Commerce and Industry of India (Assocham) said the area had slipped to fourth in a run down of the country’s most economically attractive areas.
Eastern India has soared to the top of the chart way ahead of the “one-time vibrant” north, according to the group.
The east commands the highest share of private investment, followed by the south of the country.
Western India is in third place and is followed by the north in fifth and central regions down in sixth.
Assocham president Sajjan Jindal said:
“Despite the huge potential, the northern region has lagged behind the other regions of India.
“The state governments would have to re-design their investment policies and improve infrastructure to lure back the investors into this region.”
Officials singled out the northern Uttar Pradesh region, saying it was not fulfilling its “abundant potential”.
The area is suffering from bureaucratic problems, inadequate infrastructure and law and order issues, Assocham says, which are all combining to deter investment.
Sahara India Pariwar’s real estate arm recently announced it was building a scheme in Coimbatore, southern India, which will feature almost 4,000 new homes.
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The real estate sector in India has grown 30% to 35% during the last five years, reflecting the rapidly-increasing demand for office, commercial and industrial space, as well as bigger homes now considered within the range of India’s prospering working classes.