The real estate sector in India may have seen its best time for the next several decades. The real estate markets now heads downward, as people cannot make their mortgage payments.

OP Bhatt, chairman of State Bank of India (SBI), the country’s largest bank, expects 50% correction in the housing sector prices in the country. “In India we may witness up to 50% correction in pricing in the mortgage markets. If that happens, it’s good news for the Indian banking system as NPAs would reduce and new business would fall-in,’’ he said at the concluding session of Ficci-IBA Conference on Global Banking: Paradigm Shift, in Mumbai on Saturday.

According to other analysts, the market can roll downwards another additional 15 to 20% before stabilizing.The commercial and residential sectors in major metropolis are experience severe credit crunch, defaults and bank takeovers. The glut of unsold apartments is skyrocketing. The residential mortgage market is collapsing faster than the subprime mortgage market in America.

source:http://www.indiadaily.com/editorial/20263.asp