According to official figures, the majority of residential projects are being registered as of the total projects registered during the past couple of months, 48% are in the residential category. (Representative image)
Registration of real-estate projects in Gujarat is picking up and nearing pre-lockdown level, according to sources in the state urban development department.
Till March 2020, on an average, 150 to 180 real-estate projects used to register with Gujarat Real Estate Regulatory Authority (GUJRERA) every month, said a senior official.
“Due to nationwide lock-down imposed in the last week of March this year, registration of new projects almost dried up till June. However, from July onwards, it has started picking up again as 150 and 130 new projects registered in July and August, respectively with the authority,” the official added.
According to official figures, the majority of residential projects are being registered as of the total projects registered during the past couple of months, 48% are in the residential category.
Mix (residential and commercial) projects are having 32% share, commercial projects are little below 18-19% and plotting schemes are around 1%, he added.
The Gujarat government established GUJRERA on May 1, 2017 after the central government enacted the Real Estate (Regulation and Development) Act, 2016 for regulation and promotion of real estate sector in the state.
As per official figures of GUJRERA for 2017-18, investment of Rs 86,663 crore was declared by the developers with the authority.
However, in 2018-19, investment in the sector went down to Rs 72,184 crore despite number of projects increasing from 2,203 to 2,946 compared to previous year.
Last fiscal 2019-20 was even more dismal as investment in the sector plummeted further to Rs 44,773 crore through hardly 1,750 projects. Sources said the current fiscal would be even more disastrous as for almost three months (April to June) there was almost no new registration of projects due to the coronavirus pandemic.
“Since July onward there has been some movement in the market, especially in the residential sector. Real estate developers are facing the problems of liquidity.
As commercial establishments have opened during the different phases of un-lockdowns, it seems new projects would be registered in the coming months as there has been plenty of inquiries from developers,” said the official.
Since the formation of GURERA nearly 7,430 projects with investment pledges of Rs 2.14 lakh crore have been registered. Gujarat is one of the top three states in the country as far as registration of projects are concerned after enactment of Real Estate (Regulation and Development) Act 2016. Gujarat’s share in the country’s real estate investment is almost 17%.
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