India's property market is rebounding after being in a down cycle for the last six years as a series of headwinds ranging from the pandemic, a bad-loan crisis, and a surprise 2016 cash ban hurt demand

Recent weakness in India's red-hot property stocks could be short-lived as record low-interest rates and an economic recovery from the pandemic fuel demand from an increasingly affluent middle class.

That's the view from market watchers, who see large listed firms emerging as the biggest beneficiaries amid ongoing consolidation in the $200 billion sectors. While the S&P BSE Realty Index slid 3.1 per cent in August, the 10-member gauge is up 24 per cent this year and on track for a sixth straight quarterly gain -- the longest run in Bloomberg-compiled data going back to 2007.

"The growth and scale in the sector will come from the middle class," said Sharad Mittal, chief executive officer at Mumbai-based Motilal Oswal Real Estate, which has cumulative assets under management of 46 billion rupees ($630 million). "Consumers are preferring large developers who are well-capitalized and well perceived."

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