“The funding avenues exploited earlier seem to have dried-up. For instance, between Q1 FY10 and Q3 FY12, FDI in real estate declined by a drastic 92% and its share in total FDI shrunk from 16.83% to
1.94%. Fate of fund flow through IPOs, QIP and PE is also similar. As a result, all hope is stemmed on revival in sales, which is imminent on either a robust economy or lower property price,” the consultancy firm has stated in its May Report on Economy and Realty.

The real estate sector has over the last few years been adversely affected by high interest rates in the economy as well as lack of buyer interest. Rising prices have also contributed to a stagnating market in the last few months.

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