I have seen the rise and fall of Australian & UK real estate cycle twice.

Those cycles have/had the same characteristic as what is happening in India (Except India is more aggressive)

Both equity and real estate Cycle in Australia is about a 7-8 year cycle.
India seems to have longer Cycle 10-12 year.

As an economist and a property owner in India and abroad – all I can say is what is happening in India is extreme greed and speculation – This illogical and unsustainable.

I love to see my property value go up but in a sustainable level and in tandem with macro economy.

I have seen dealers entering in to AGREMENT OF SALE and then trading it to third party for a huge profit.

POWER OF ATTORNEY DEALS are often used by these traders as well.

I have seen uneducated brokers/dealers earning up to one crore in 1 year by SWITCHING couple of properties.

I haven’t seen any market in the world that is so untransparent.

SPECULATION IS THE NAME OF THE GAME IN INDIAN REALESTATE MARKET.

I was quoted 1C for a property in Chennai in Dec07 and again the same property (Unsold) in March 08 was quoted 1.3C and now in June the same property (Unsold) he is quoting 1.5C in June 08

The vendor has not sold the property in the past 6-8 months how ever he did not fail to increase the asking price by about 30% every 3 Months

As a owner of properties in India, I am saying it is not sustainable.

One buy great Properties In SYDNEY and MELBOURNE cheaper than Indian cities(5 metros),Sydney and Melbourne’s average Income of a Clark, Cook or a taxi driver is about 25 Lacs p/a and a average 2BR flat with 10 -15 Kms to the CBD is about Rs90 lacs.

Greed and speculation will end in pain and COMMONSENCE WILL PREVAIL.

If not 1997 EastAsian economic crisis (Thailand,Malaysia,Indonesia etc) will be repeted in India with a devaluation of rupee followed by inflation linked economic meltdown which would take 10 years to get back on feet.