Goldman Sachs expressed concerns over the slowdown in Indian reality sector following global slowdown. It has stressed the need to cut reality prices by 30% to increase demand. However, it can affect the annual economic growth rate but the price reduction would increase affordability of people.

Property rates in metros and suburbs are very high and needs revision, in order to attract customers and terminating the slump in the reality sector. The rates of property would fall in coming times due to global credit crunch. Realty sector is highly dependent on income in growth, demographics, interest rates and inflation and current situation is not healthy enough to increase housing demand.

IT and BPO sector is also under pressure and it is not in the position to carry out its expansion plans.

Reality sector contributes 7.3 per cent in GDP and slowdown in the reality business would definitely impact economic growth. The report cautioned that the slowdown in construction sector can lead to large scale lay-offs in coming times. It compares current scenario with situations of 1996, when property rates increased by 70 per cent and then fell significantly.