by Arun Prabhudesai 
The real estate prices have been touching the skies for sometime now. ET now reports that things are cooling down. The real estate prices in some regions have come down as much as 25%.
Land prices in the national capital region (NCR), Mumbai suburbs, Bangalore and Hyderabad have corrected by up to 25% as property developers slow down their land purchases. Poor sales and lower availability of credit at higher cost have prompted property developers to end the mad rush to acquire land. Some of the developers have even backed out of land deals which were agreed upon as the slowdown hit the sector.
Prices have come down by up to 25% in Mumbai’s distant suburbs, including Thane and Belapur, and pockets of Hyderabad and Bangalore, according to property consultancy firm Knight Frank India.
May 16, 2008 Continue Reading → by Arun Prabhudesai 
I have been having some very interesting comments to my articles I have previously written on Indian real estate specifically targeting the Pune market. However, the situation seems to be common across most upcoming cities and Metros in India.
The comments left actually reflect the reality of present Indian real estate situation. Majority of people have been waiting in the wings in anticipation that the prices will come down since last 2-3 years. In the meantime, prices have more than doubled and it is out of reach of even people earning a fat salary.
Here are few selected comments from the article I had written late last year on how I made a fool of myself about prediction of real estate prices:
May 4, 2008 Continue Reading → 
This is how bubble builds up !
by Arun PrabhudesaiI got an interesting comment on one of my previous posts on Pune Real Estate. The commenter – Ranjeet – provides a story of how a bubble builds up especially in real estate space.
I found it quite interesting and thought it would be an interesting read for trak.in readers. I am producing the comment verbatim here..
STORY OF PUNE REAL ESTATE
Once there was a little island country. The land of this country was the tiny island itself. The total money in circulation was 2 dollars as there were only two pieces of 1 dollar coins circulating around.
1) There were 3 citizens living on this island country. A owned the land. B and C each owned 1 dollar.
2) B decided to purchase the land from A for 1 dollar. So, now A and C own 1 dollar each while B owned a piece of land that is worth 1 dollar.
* The net asset of the country now = 3 dollars.
3) Now C thought that since there is only one piece of land in the country, and land is non producible asset, its value must definitely go up. So, he borrowed 1 dollar from A, and together with his own 1 dollar, he bought the land from B for 2 dollars.