Stock Market Slump Hits Housing Sales: Will Property Prices Fall?

• Subdued equity markets and volatile investor sentiment are impacting India's real estate sector, particularly mid-income and premium housing.
• Residential sales have moderated post-pandemic, mirroring the lackluster stock market performance, leading to cautious buyer behavior.
• Developers like Signature Global, DLF, and Oberoi Realty anticipate weaker sales, signaling broader stress in parts of the residential market.
• Investor-led demand has weakened due to uncertain capital market returns, high interest rates, and elevated property prices, especially in Gurugram.
• Outright price cuts are unlikely due to high construction costs; developers are offering incentives and flexible payment plans instead.

Why It Matters: Lackluster stock market performance is slowing housing sales, but outright price cuts are improbable; incentives are key.