Indian Real Estate would correct in due course of time. Indian Real Estate Market is not isolated. Property price correction led to the whole subprime crisis in US and is resulting in recession in USA. Property prices is correcting in Europe with major falls happening in UK, Spain, France, etc. In Cochin, there are more sellers than buyers. People who speculated on property prices in Kerala wants to sell but there are no buyers to be found. Basic principle is simple. When a common man, the average Govt employee or a private sector employee with a wage of around 10,000 rupees per month gets priced out of the real estate market, the market cannot sustain the rise in property prices. All growth has to be inclusive growth which takes into account the whole population rather than a few rich people.
Property prices would correct, but dont expect it to fall say 50 %. It would correct anywhere between 10 to 30 % in the short run. It is something which is echoed by ICICI Bank Chairman K.V Kamath.
