Mid-cap real estate developers are expected to show a slump in sales by half to as much as 90% in the June quarter, as home buyers stay clear of purchases, according to a poll of brokerages by Reuters.
Margins are also seen squeezed as many launch cheaper housing to boost unit purchases, but the firms are expected to show a fall in their bottom line by at least 60%, or plunge to losses during the quarter over a year-ago, according to the poll.
'Mid-income is boosting demand. There is a huge gap in supply-demand.' Shailesh Kanani, analyst at Angel Broking said.
'Margins (are) likely to come under pressure due to change in product mix,' Macquarie Research said. 'Sales expected to drop significantly year-on-year due to a slowdown in the physical property market.'
Times of India