Falling prices and interest rates are unlikely to woo once-thirsty home buyers now spooked by slim pay hikes and job cuts, and may push cash-strapped realty firms to drop prices further in order to stave off losses.

For months, real estate firms, including top-listed developer DLF and No.2 Unitech have been looking to raise funds to boost liquidity and cash flows rather than to drive growth projects.

'This is a major recession and everything is affected; so everyone has pulled back and no one is willing to commit money or cash and hence there seems to be no other source to bring in that money,' said Anurag Mathur, Managing Director of real estate consultancy Cushman & Wakefield in India.

Financial Express