The election of a stable government at the Centre could bring a bottom to the real estate market and may help in turning it around, as improved economic sentiment and rallying stock markets bring back confidence into the battered sector, industry experts say. The real estate sector has seen a steep fall in prices in the past year, with the country’s financial capital Mumbai, for example, seeing an average correction of around 40% this quarter compared to the corresponding quarter last year. Many other cities and towns across India share a similar fate.

Prominent developers such as Kalpataru, Lodha, Rustomjee and Acme Group have been quoting prices 20% lower than their card rates six months ago, say industry insiders. In the case of Godrej Properties, the fall was even sharper at 30% for its Planet Godrej project in Mumbai’s Mahalaxmi area, they said. Property market experts say there was a risk prices would have fallen another 20% by December had the elections not thrown up a stable government. “The (Congress-led) UPA has a clear mandate…

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