There is respite ahead for people who want to invest in residential property in metros. According to experts, this segment of the market is set to witness a slide in prices soon. That's because over five million sq ft of residential space is under construction currently in areas in and around Delhi, Mumbai, Chennai, and Bangalore. They say a majority of this supply will hit the realty market over the next 6-12 months. Since there are fewer takers for residential property in prime locations right now, it could force developers to bring down prices.

Pankaj Renjhen, MD, Jones Lang Lasalle Meghraj, Mumbai, said, "In certain markets the reason is oversupply. In certain markets the size of the market is very small and the number of projects that have been announced, or which are being sold in the market are much more. Secondly, there is an absence of investors in the market, so it's a purely end-user market. The stock markets have corrected, peoples' perception that they have lesser wealth right now, also effects the real estate market."

Currently, an apartment in the prime locations of Chennai would cost about Rs 4,100 per sq ft, while the same in Hyderabad would cost around Rs 2,500-3,000 per sq ft. Mumbai and Gurgaon are on the higher side, with prices currently ranging between Rs 5,500-7,000 a sq ft.

Experts say the demand for houses in the metros has already reduced by 40-50% in the last few months. While investors and speculators seemed to have left the realty market for now, end-users continue to drive the market but they make up only about 30-40% of the total market size.