Unitech Ltd and DB Realty, considered to be the top notch real estate firms in India have been struggling for sales in the June quarter as a result of high interest rates and decreasing demands by the buyers. Almost all of the real estate firms in India is facing the same situation majorly because of these two reasons. Unitech Ltd recorded a fall of 11% in the March quarter, whereas DB Realty experienced a boost which came from non-core assets and not the main assets of the developer.
According to Mr. Hitendra Gupta, senior equity research analyst, Jaypee capital services Ltd., a Mumbai brokerage, the real estate developers will now have to rely on festive seasons as most of them have experienced loss during this season. He also added that as the developers are still keeping the listed price higher then what it should be considering the current market scene, they won’t be able to make profits in the coming seasons too. According to the official records Unitech’s profits dipped by 43.47 % to Rs. 595.85 crore over the March quarter. Rising interest rates along with increased input costs and delayed approvals are some of the major causes of the slowdown experienced by these firms.
No comments:
Post a Comment