 "Patchy recovery in real estate")
The residential demand in Bengaluru and Chennai has risen due to commercial activity and information technology (IT) professionals arriving. The National Capital Region (NCR), Mumbai and Kolkata have seen slowdown.
Samantak Das, the chief economist and director of research at KnightFrank, said, "Southern markets, specially Bangalore, have seen good demand in sales and launches, compared to the NCR and the Mumbai Metropolitan Region (MMR)."
Anshuman Magazine, chairman and managing director, CBRE South Asia, said, "Markets have become more diversified with the underlying dynamics of the places becoming important. In Gurgaon, Sohna Road is different from Golf Course Road."
The total demand has remained subdued mainly due to high interest rates and property prices.
Das said, "Both consumers and investors are still not buying due to high prices."
Magazine said: "Buyers are sitting on the fence as price remains a major factor in Delhi and Mumbai."
Magazine added: "There is oversupply but in parts. The stock of finished projects is not large but the projects launched but not completed are a lot."
As these projects will be completed over the next few years, by when the economy is likely to be on surer footing, absorption rates may be higher. Debopam Chaudhuri, chief economist, ZyFin Research, said: "Metros are seeing a pickup in willingness to spend."
If inflation moderates, as the latest data does suggest, the likelihood of interest-rate cuts next year rises.
Chaudhuri said: "The conversion of willingness to spend into actual demand should happen round the first quarter of the next financial year."
Das said: "A pickup in demand is expected only eight to 12 months from now, beginning probably towards the end of the first quarter of the next financial year."
Magazine said, "The boom we saw in the decade may not be replicated in the same manner across the country this time."