Realty mart to witness slowdown

The not-so good Budget proposals for the real estate and the massive drop in the stock prices of realty companies is gradually leading to a slowdown in the real estate sector, opine industry watchers.

The increase in customs duty on cement prices and the continued squeeze on the credit and drop in the stocks would make the realty firms slow the pace of the realty development, say the analysts.

"The Budget proposals will have a clear impact on the cost and realisation and developers will not able to pass the burden on the end-users. Also, with the credit squeeze, developers are under pressure to release their stock and increase their liquidity to fund their on-going developments. This could, at least in the short to medium term, would have downward impact on the prices," says Jai Mavani, executive director, KPMG.

Adds Akshay Kumar, chairman, Park Lane Property Advisors: "All the negative proposals will turn into negative sentiments and I clearly see the demand slowing down in the next 12 months."