Well, they may be able to hold on to their underwear, but pants? ... :)
Note what Mr. Harikrishna says about the question of this likely to resemble 1995. Note that in 1995, prices came down by anywhere from 50% upto 80%!!! Not joking. I was there and saw it; even have specific data in my market.
This time the magnitude of the problem is much worse. The Global recession (both in general as well as in RE) will go on till at least 2010-12. It may even become a depression (somewhat like 1930s in the US).
What Mr. Harikrishna and the entire banking and RE industry are not willing to admit is that, with the humongous amounts of money at stake (he himself has $500 million in cash to answer for and the clock is ticking!), EVERYONE is in DEEP denial about this slump.
In my humble opinion, fall, especially in high-growth areas like Chennai, Bangalore, etc will be in the range of 40% to 80% from peak. WAIT. Till the builders are in default. Recent attempt by builders to raise additional cash (within ONE year of raising huge amounts) from the stock market indicates severe/desperate cash crunch. Only problem is, even stock market investors are running scared.
One thing he was right about. Those who wait will get a bargain of a lifetime, literally.
