Indian real estate price can fall 60 to 70% from current levels in the next five years

The real estate sector in India may have seen its best time for the next several decades. The real estate markets now heads downward, as people cannot make their mortgage payments.
OP Bhatt, chairman of State Bank of India (SBI), the country’s largest bank, expects 50% correction in the housing sector prices in the country. “In India we may witness up to 50% correction in pricing in the mortgage markets. If that happens, it’s good news for the Indian banking system as NPAs would reduce and new business would fall-in,’’ he said at the concluding session of Ficci-IBA Conference on Global Banking: Paradigm Shift, in Mumbai on Saturday.
According to other analysts, the market can roll downwards another additional 15% to 20% before stabilizing.
The commercial and residential sectors in major metropolis are experience severe credit crunch, defaults and bank takeovers. The glut of unsold apartments is skyrocketing. The residential mortgage market is collapsing faster than the subprime mortgage market in America.

4 Comments

  1. Venkat
    Posted November 14, 2008 at 4:44 am | Permalink

    Check this out.

  2. John Beagle
    Posted November 17, 2008 at 4:55 pm | Permalink

    There’s still time for people to sell their properties while it’s valued high. If they wait too long, they’ll see their profits disappear.

  3. Hitesh Damani
    Posted November 19, 2008 at 8:20 am | Permalink

    I think a lot depends on what the RBI does.
    Presently having the rupee at 47-50 range is a great thing, however any move to change that scenario, will have a direct impact on property prices

  4. Mani
    Posted November 20, 2008 at 10:41 pm | Permalink

    The real question is how will the cities prime property prices fall when compared to inflated values from the suburbs ???

    I am from Chennai, I see a lot of new suburbs being developed which has obviously increased the value of the properties in the city..

    Any thoughts…?

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