1. Cash Inflow from foreign Investors
2. Home loan interest rates were quite low
3. Boom in IT Sector
4. People buying more than one house on loan just for investment purpose even if it was a costly affair.
5. Many NRI’s buying houses in India for investment.
Now all of the above conditions have reversed
1. Foreign investors taking out money
2. Interest rates too high
3. IT Boom some what burst
4. People who brought more than one home are desperate to sell their 2nd home
5. NRI’s selling their invested houses as they need the money there.
Now all the positive has become negative and one can see property rates are coming down by 25 – 50%
So the strategy for home buyers is wait and watch policy for the next 6 to 12 months, unless you are getting a very good deal from some NRI or from a person who can not take the heavy interest rate any more.