In the backdrop of mostly subdued residential demand in 2014 due to high prices and interest rates, where the real estate inventory — the number of months required to clear the existing stock at the current absorption rate — during January to September rose to 83 months in the NCR (national capital region) and 50 months in MMR (Mumbai Metropolitan Region), developers, investors, and property consultants are betting on improvement in economic growth and lowering of rates, with commercial real estate leg up pegged on the expected functioning of real estate investment trusts (Reits).
The scenario had Rajeev Talwar, executive director at DLF, the country's largest listed developer, aver, "The next six to eight months will have good traction in residential properties. If interest rates come down before that, immediate improvement in residential transactions would be visible." Ambar Maheshwari, chief executive officer, Alternative Investment Funds, Indiabulls Group, said, "I think demand to come back by mid-2015. But, people need additional money in their hands only then will improved sentiment translate into reality."