Recession in Realty

The real estate sector in India assumed greater prominence with the liberalization of the economy, as the consequent increase in business opportunities and labour migration led to rising demand for commercial and housing space. At present, the real estate and construction sectors are playing a crucial role in the overall development of India's core Infrastructure. The real estate industry's growth is linked to developments in the retail, hospitality and entertainment (hotels, resorts, cinema theatres) industries, economic services such as hospitals, schools and information technology (IT)-enabled services like call centre's etc and vice versa. But now worst affected industry is real estate. The companies being the forerunner had to face the brunt of the economic slow-down resulting into decreased sales volumes and pressure on the profit margins, increase in debt and financing costs. In the light the paper will analysis the performance of two selected companies in terms of their profit, debt, and financial charge. The paper will also suggest some measures for their better performance.