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First Signs of Real Estate Bubble Bursting
January 30, 2008
I was surprised to find that the next day after I wrote a blog on how real estate prices in India were poised to collapse, The Economic Times carried an article mentioning the fact that the housing and land prices in India have already started to see a dip.
The Economic Times reported that in major cities, the prices have fallen by about 5% - 10%. In some cities like Kochi where the prices had sky rocketed in the past few years, the fall has been even sharper. The ET also reported that there is a sharp fall in the number of transactions. The property developers were also adopting a wait and watch stance to see if they need to shelf some of their more ambitious projects.
Todays Malayala Manorama - the leading daily in Kerala - also had an article as to how the not lowering of interest rates by RBI has dashed the hopes of real estate dealers and developers of a recovery. A recovery - meaning the prices have started to go down.
The other interesting tidbit that I came across is that the number of real estates "for sale" advertisements by brokers have gone done significantly.
All this points to an impending crash in real estate prices in India.
Posted by liveit at January 30, 2008 1:05 AM