A report by Bain & Company indicates some improvement in the condition of the sector. "The business model of real estate itself has seen a change and will continue to change more rapidly over the next few years," said Parijat Jain, a co-author of the report. 

The industry is seeing a shift in dynamics with competitive forces giving rise to distinct business models, the market and regulatory environment becoming more complex, a shift in profit pools and increasing awareness among consumers and customer activism. And with high levels of inventory, selling properties has become increasingly challenging. "It is a combination—there is a part of the sector that is doing extremely badly and there are pockets which are actually doing well," said Gopal Sarma, head of Bain India's Real Estate and Infrastructure practice and the lead author of the report.