Liquidity squeeze, high EMIs and double-digit inflation are some of the biggest triggers for investors to change their strategies in the real estate space. At the same time the ongoing economic crisis in the US has further worsened the things for realtors.

The froth in the Indian realty market still needs to settle, remarked Sameer Nayar, who manages close to a billion dollars at Credit Suisse.

"There is a flight of global capital. There will be a lot of bloodbath as a lot of projects will just not get finished. Forget the pipeline," pointed out Nayar.

Developers, however are still defensive betting on the latent demand. “The current year is not that good but I expect the next year to be much better,” said Niranjan Hiranandani, Hiranandani Construction.

But only a minority share this optimism. A 20 per cent correction across residential and commercial assets is what most has already factored in by the third quarter of 2009.

"A correction in the quoted price for commercial projects to the tune of 15-25 per cent is expected but not in CBDs. For existing assets Rs 2000-Rs 3000/sq ft is an attractive space," said Vivek Dahiya, Director-Development Markets, DTZ.

The reality of Indian realty is getting sombre by the minute with realty experts saying that sales volumes are expected to dive further south.