Home sales in India are seeing an upward trend in some parts of the markets, but industry experts say recovery has some distance to go. Buyers in India are waiting for further price reduction.

Builders have resumed construction after a gap of almost one year and concentrating on cheaper projects to beat credit crunch. Rajesh Goenka, Chairman of Axiom Estates, a real estate agency, has said though the trend is improving, recovery might take few more months. Real estate builders have spent many months lying low due to high interest rates and economic downturn.

A recent spate of interest rate cuts has lifted the buyers and they have started working on new projects. They are mainly targeting middle-income buyers. The demand is more for affordable housing. Real estate firms like DLF, Parsvnath Developers have redesigned their projects to attract more consumers.

Home sales are not spread evenly across all regions, even though the prices of real estate have fallen by 30-40%.

Pankaj Kapoor, Chief Executive of Liases Foras Real Estate Rating & Research, says, even though new projects have started showing some sales, home loans have not picked up, indicating that the homes are being bought by investors.

According to home buyers, the prices have not fallen as much as they have been projected to have. Builders are guarded with hopes that prices will continue to remain firm and investors are hoping for a good return in pricing.

According to an analyst, it is too early to call it a recovery and sustainability over a period of time has to be looked into before making positive conclusions.