The slowdown in the economy has hit the realty sector in Mumbai.

The Maharashtra government and the Maharashtra Chamber of Housing Industry have estimated that there has been at least 30 per cent reduction in the business and the situation may aggravate.

The government and realty players have admitted that the prices are likely to move upwards and the supply would be affected.

"There are signs of slowdown in Mumbai's realty sector.

"It is too early to give the exact numbers, but it may be around 30 per cent.

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"Investors who have already launched projects have slowed down a bit due to the present situation, while others have decided to wait and watch till there is improvement in the economy," minister of state for housing Sachin Ahir told Business Standard.

The minister also admitted that unless the demand-supply mismatch for housing stock was reduced, there would not be any drastic correction in prices.

"There is a possibility that the supply may be reduced due to the slowdown and it will lead to an increase in prices instead of a fall.

"It is too early to project the rise in realty prices, as we will have to closely watch the developments in the economy," Ahir said.

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Paras Gundecha, president of MCHI, echoed Ahir's views and said there had been a 30 per cent fall in the realty business in Mumbai and the Mumbai Metropolitan Region.

"If consumers prefer to wait considering a price correction, then it may not happen. Instead, there will be surge in prices due to the drastic fall in supply," he said.

However, he said the reduction in supply was not merely due to the slowdown but largely due to delays in getting several clearances.

"It takes almost two years to get the commencement certificate from the civic body.

"MCHI has repeatedly called upon the state government and the civic body to introduce a single-window system for all clearances, so that the projects can be completed in a time-bound manner.

"We are hopeful," Gundecha added.

Ahir admitted there had been delays in providing various clearances.

"I have asked the chief secretary to convene a meeting, so that the issue can be resolved on a priority basis. The meeting may take place next week," he said.