The steep rise in the real estate registered during the years 2005-06 was not,strictly, owing to increase in income levels,but because of the artificial hike resorted to by the Realtors in connivance with govt in some states like Andhra Pradesh where the ruling party has been keen in making money on all fronts and the real estate field appeared very handy & allluring for it.Added to this,the interest rates on home loans were perhaps the lowest we ever saw with stiff competition amongst the financing banks/institutions.In contrast to the days when the prospective borrowers were required to go around banks completing all formalities which were very cumbersome,banks staff themselves were behind the borrowers with all ready made stuff and a less than week process time in all.With all these inherent artificialities,the bubble went on enlarging to such an extent of skyrocketing unaffordable prices,that it has to burst in the absence of people coming forward to buy.The greedy realtors and their brokers who earned hefty amounts on the deals hardly realised that what they brought in is not "fat" in the activity,but only a swelling which is a sign of sickness.Any thing that increases abruptly & unreasonably has to crash down and it rightly happened to the real estate too.This applied even to the stock market also in spite of its learning several bitter lessons in the past.The real estate prices were raised to such an extent that even NRIs fear to tread in.Greed always leads to grief
