India, March 13 -- I am rarely optimistic in a room full of real estate professionals. Given the nature and complexity of the business, builders have to be positive to survive. Yet, over the past 3-6 months, that has been the common vibe I have felt in conclaves and events.

Customer enquiries have dropped, and sales have fallen. Sentiment, however, has been crushed as the oversupply of homes meets the cascading impact of a battered stock market. The optically strong sales registration data met its opponent in ground-level reality for most builders. At the moment, the registration data feels akin to showing strong GDP growth data to an unemployed person.

What's gone wrong here? The foundation was laid in 2021 when the municipal corporati...