Indias real estate companies are expected to see a marginal rise in sequential sales in the fourth quarter ended March 31, 2009, on the back of good demand for their new
projects, coming at up to 20% discount to existing market prices. However, their profits may take a hit. On a year-on-year basis, the top five real estate companies are expected to report a 74% decline in topline, according to the estimates of ET Intelligence Group and five brokerage houses.
DLF, Indias largest real estate company, is expected to see a 75% decline in sales in the quarter, while Mumbai-based Orbit Corporation may see a whopping 80% fall in sales. We expect the fourth quarter to be worse than the previous quarter, as slower sales and absence of new launches begin to get reflected in the financial performance of major real estate players, said a Motilal Oswals study.
The global financial crisis and rising interest rates towards the middle of FY09 halted a five-year real estate boom that started in 2003. The real estate industry, that was growing at a scorching 40% rate, will barely manage a 20% growth.
More : economictimes.indiatimes.com
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