I think the word “Recovery” is critical here. How do you define it ? On Revenue basis, inventory basis, bookings basis ?? I am invested in some of real estate companies and during Q3 , 1st time sign of green shoots were visible over qoq and yoy bookings data. Yoy may be a demonetisation factor but qoq comparison post smoothening of seasonality can not be ruled out. However, this is just 1 quarter and need to be continued. Looks like on one side of table , bloodbath going on and on other side quality players have started to get benefit though calling out it a trend need few more quarters . This is the kind of inference I had going through concalls of these companies I am invested in.
And as you said commercial realty is in much better shape and there are genuine reasons for that . Residential realty is many times created ON black money , created FOR investment created BY fraudulents where as commercial realty does not suffer from these issues. So, unless the economy/core customer sectors do terribly bad or supply is highly skewed to demand in abundance , commercial realty tend to do better