Shares of real estate developers were trading lower as investors continued to cut exposure to the sector on concerns of increasing interest rates and rising input cost, several dealers and two analysts said. The near-term (for the sector) could be clouded by negative newsflow on funding and pricing, Citigroup said in a note. However the U.S. investment bank said things should improve in the medium term as liquidity eases and sales pick up after some correction in prices. At 12.58 p.m., the realty index of the BSE was down 2.32 per cent, underperforming the benchmark index, which was down 0.8 per cent. Shares of DLF, Unitech, Indiabulls Real Estate and Sobha Developers were down 1-5 per cent.