We are seeing a gradual recovery in real estate. Where within real estate do you see some steam?
There has been some pickup in demand recently but it is not picking up meaningfully across the country. Haryana even raised stamp duty on purchases of real estate. Karnataka has reduced it for buyers in the sub 50 lakh rupee level in urban areas where there is always demand. In the next five or six years, that demand will not come down.
The problem remains in the expensive real estate and both bank credit and demand for these sectors is not going up in any meaningful fashion except for in Mumbai. There is some interest in the early stage at some level of bookings, but inventories are not coming down meaningfully or sales being booked. This quarter will perhaps be good because some of the dynamics of the last three quarters have resulted in sales going up, but I do not see this sustaining or meaningfully changing the economics. So we may be in for a surprise in the later part of this year. Even if interest rates remain this low, I do not see real estate demand going up meaningfully.