New Delhi, Feb. 19 -- The ongoing urban slowdown will continue until the first quarter of the Financial Year (FY) 2026, with a revival anticipated to begin in Q2FY26, according to a report by Nuvama.

The report highlighted that the sluggish urban demand, which is currently impacted by high rental inflation and stagnant wage growth, will show signs of improvement as fiscal measures taken in the union budget and rate cut by the Reserve Bank of India (RBI) effect.

"In our view, urban demand will start improving from Q2FY26," the report added.

Key factors contributing to the urban slowdown include high rental inflation, slow wage growth, and overall economic pressures.

However, the report says that the situation will improve gradually wit...