Real estate sector, which contributes nearly 6 per cent to the GDP, is likely to witness a 10-15 percent fall in demand across top six cities next financial year if the coronavirus-led lockdowns last up to next two-three months, India Ratings said.

According to the rating agency, the overall residential demand across top six cities would fall by 7-10 percent in 2019-20.

The demand was negative 4 percent in the first nine months of FY2020 as compared to corresponding period last fiscal.

"The residential demand across these top six cities is expected to fall by 10-15 percent in FY2021 as against FY2020 in the event the coronavirus-led lockdowns and other social distancing measures last up to next two-three months," the agency said.

In case the outbreak lasts longer, residential demand, which closely tracks economic growth rate, could take a further hit on account of the economic fallout from the pandemic, it said.

First Published:Mar 28, 2020 12:36 AM IST