Everyone of us are hoping for price reduction or crash in Real Estate prices which happened in US. We are just comparing two totally different systems. One in US is more transparent and controlled by various factors like consumers, demand-supply,economic growth and affordability of people. But in India it is just the opposite. The prices are controlled by greedy builders, greedy speculative buyers (who wants to sell it after a year for a higher price), corrupt politicians who makes most of the money from this RE business. In India the money transaction is not at all transparent and 50% of the transaction is through black money (which happened to my friend). So the builders are totally insulated from the slump in economy or price crash. The banks are also well protected s they have given loan for a meagre amount which is equal to the actual price of the property.
So in India the price crash may happen only due to the following scenarios
1.government is seriously enacting some laws to protect the consumers.
2. One family-one house policy (long term solution)
3. Increase in EMI defaulters due to job cuts which directly puts sellers/bank (which acquires property from the defaulters) in a spot to sell it for a correct price.
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