First Global in a report on Indian Real Estate said,
Our channel check shows the demand scenario in the real estate sector remains grim. This could primarily be due to low consumer confidence that can be attributed to the uncertain economic environment, fear of job losses, excess supply of commercial space and falling rentals which we believe will continue for some more time.
The QIP impact is therefore restricted to restructured balance sheets and access to funds alone does not warrant the current high valuations in this sector, which remains so vulnerable in the current economic scenario.