The steep rise registered in the real estate prices is not factually due to either increase in the income levels of the people or genuine demand for them,but by only artificial demand and unilateral rise resorted to by the realtors in connivance with the govt in some states like Andhra Pradesh where the ruling party is bent upon making money in all possible ways and the real estate field has come very handy & alluring for them.these unscrupulous realtors,with the help of their net work of brokers raised the prices so much that the prices skyrocketed and proved unaffordable even for NRIs who are said to be affluent compared to their India counterparts.Added to this,easing of house loan interest rates coupled with cut throat competition amongst various financing banks/ institutions gave fillip to the greed of the realtors who allowed the bubble to enlarge to such an extent that it has to finally burst.It is a simple truth that any thing that raises so swiftly without a valid reason has to come down with equal speed-rather more speed.The decline in demand with same speed actuated by abnormal increase in the cost of the home loans,high prices & the mismatch of the supply & demand has now left the real estate business in a lurch- especially for those who invested heavily in anticipation of further rise & becoming millionaires overnight;those who staked are in a quandary with no other way than to go for distress sales.The proverb"greed leads to grief" should never be forgotten.
