Indian real-estate companies, which a year ago were peddling luxury to the nation's growing middle class, are now trying to drive sales by pitching 'affordable' housing.

The switch means they are offering less-fancy residential properties and at sharply lower prices. Average sale prices are down 35% to 45% for recent launches, according to analysts at Motilal Oswal Securities Ltd., a Mumbai-based brokerage.

Although there are signs some consumers are biting, it isn't clear how much further prices will fall before sales recover. Corporate earnings could take much longer to recover.

Wall Street Journal