“After a rough phase that lasted for over a year, the Indian real estate industry is on the path of recovery. The residential real estate segment, which is leading the recovery, has witnessed a revival in demand, primarily due to improved affordability,” a Ficci-Ernst & Young report said.
The two-pronged strategies of the developers — improving balance sheets and focusing on developing self-funded projects — are now bearing results and helping in the recovery of the industry with a revival of demand in the residential sub-segment, it said.
The demand in the residential segment has witnessed a revival primarily due to improved affordability and was a result of lower interest rates, decline in property prices and the availability of small-sized affordable apartments.
The report, however, said that the commercial, retail and hospitality segments were still struggling due to the subdued demand from the IT/ITeS sectors and multinationals, which are halting expansion plans in the country.