Citigroup, in a note to clients, has warned that Indian real estate companies face a higher risk of payment default as access to cash becomes restricted.
The same note states that DLF, the nation's biggest property developer, Parsvnath Developers and Omaxe have shown a decline in Q2 income, as a slowing economy and tighter lending norms by banks cut out the oxygen supply.
Citigroup analysts categorically stated that they do not expect a recovery in the near term.In another development, Goldman Sachs too said, in a separate note, that the earnings of realty companies reflect a slowdown.
New Delhi-based DLF Q2 profit fell 4 percent, while Unitech's Q2 declined 12 percent respectively.
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