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Of falling property prices and when to buy a house

October 22, 2008

Diwali is an auspicious time for people to buy property. But this year rising interest rates, unjustifiably high real estate prices, rising inflation, the stock market crash, a slowdown in the economy, salary cuts, lay-offs, the global credit crunch, and a general fear of worse financial times to follow have hurt India's realty sector like never before.

Home-loan interest rates have skyrocketed and people are tightening their purse strings to ride the financial tsunami that has reached Indian shores.

So what is happening in the sector? Should you buy a house now or wait? Just when would real estate prices fall to reasonable levels? Click here to find out . . .

Image: A storm erupts over the skyline of Mumbai, where property prices have soared to unaffordable levels leading to a slump in the real estate market. | Photograph: Rob Elliott/AFP/Getty Images

Also read: Why Lehman Bros went bust; what it means for you

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