Driven by price corrections, softening of interest rates and improved liquidity, the real estate industry is on the path of recovery on the back of improved demand in the residential segment.
"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.
