Thread: Will real estate prices crash?

Real estate and residential prices are shooting through the roof. Be it big cities or small towns, spiralling real estate prices show little sign of easing off.

Low interest rates on home loans, coupled with huge demand for housing from India's burgeoning middle class, have seen property prices doubling in some cities. Add to this the mad frenzy for developing special economic zones (SEZs) that will gobble up huge tracts of land.

Do you feel that this is a bubble ? when real estate prices plummeted?

Do you think high interest rates will lower demand for housing loans? Will you resist the temptation of buying a second home just because interest rates on home loans are increasing?

Should home loan interest rates have been increased? Will the real estate prices drop?

Tell us what do you people think ?

Well, the effect has already started to be witnessed. The real estate prices has crashed and there are homes lying vacant just after the construction. In the Noida region, out of all the newly constructed flats, as much as 75% are yet to be sold with no buyers longing for them anymore. One of the reasons for this trend could be high interest rates, a strategy which Reserve bank has taken up to keep inflation in control.