Are real estate developers celebrating a rebound too soon? Market experts say a recent rise in property prices could stifle demand than boost profitability for developers, who seem to be in a hurry to force the pace of an incipient recovery.

"It's a lost opportunity for the developers. The June quarter was the best in terms of sales in three years and the momentum has now lost as prices firmed up. Vacancy levels have gone up," said Pankaj Kapoor, CEO, Liase Foras, a real estate research firm.