NEW DELHI: For India's realty industry, the initial euphoria has died down and the high expectations have also moderated in the absence of swift relief, as the Prime Minister Narendra Modi government concludes one year in office. Yet, there is a strong hope of revival with sustained growth.

It's taking longer than expected for 'Achhe Din' — or the good days promised by Modi — to arrive for the real estate industry, which is reeling under liquidity crunch, slow sales and high unsold inventory.

This is because the government is working on a medium-to-long term strategy to revive economic growth by boosting consumption and restarting investment cycle. And it strongly believed that reform-led policies work better in the long run for the growth of real estate rather than short term booster dose.

Not with standing the reformist policies of the progressive and forward-looking government, the current real estate scenario is a matter of concern. Both investors and end-users are deserting the market due to high property and lending rates amidst demand-supply mismatch have a taken toll of the market.

In the Delhi National Capital Region, the biggest residential real estate market in the country, for the first time in three years, the sales have dropped more than 50 per cent in the first quarter of this year.

The unsold inventory is rising sharply across the country, with Mumbai recording the highest 200,000 units, followed by NCR with 170,000 units. Going by the industry statistics, NCR, Mumbai and Bengaluru will respectively take about 54 months, 34 months and 28 months to clear the inventory.

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