Mumbai: Stocks of realty companies fell by up to 6.5% after ratings agency Moody’s said weak housing sales and stagnant prices will pose challenge to big real estate developers over the next 12 months. Shares of Indiabulls Real Estate slumped 6.55 %, Godrej Properties shed 4.74 %, DLF lost 4.33 % and Unitech fell by 3.95 % on BSE. Similarly, Oberoi Realty was down 3.40 % and Parsvnath Developers lost 1.37%. The BSE realty index was down 3.17 % to 1,220.73.
Developers will not reduce price to boost sales, rather will continue with their strategy to reduce apartment size and offer freebies, Moody’s Investors Service said. Sales volumes will remain weak because of unaffordable housing prices, resulting in unsold inventories.
