New-home sales fell 50% to 60% across six major cities in the first half of this year compared with the same period last year, brokerage Kim Eng Securities says. Those cities make up 80% of India's residential market. Realty advisor Liases Foras says it would take two years to clear record high inventory levels at current prices.
Affordability is a key problem: property prices have risen sharply in recent years, well above wage increases. Slowing economic growth, sustained inflation and two years of high interest rates add to the burden on home buyers.