Property prices in Mumbai may crash upto 50%

Nothing to do......the demand and supply factors that have together tightened their stranglehold on the pressurized real estate sector in recent times include: 1) Key state governments like West Bengal, Delhi and Maharashtra have hiked ready reckoner rates sharply this year and thus prevented prices from dropping to a market clearing level.

2) The 8% point gap between gross rental yield and bank base rate highlights the unattractiveness of real estate for investors.

3) Black Money Bill went live on July 1 and has made high-net-worth families unwilling to invest in real estate.

4) several years' worth of unsold real estate inventory in most of India's tier-1 and tier-2 cities is causing investors to hold back further purchases.

@Himani,
And seeing the current market scenario and the pile-up of inventory in major ciites like Mumbai and Delhi, i am 100% sure that it would take as much as 11-14 quarters to clear the existing inventory.

Right Saras,
Some major parts of cities such as Delhi have already steep price correction at 20-25% and smaller cities such as Jaipur, Rajkot and Lucknow have seen a 15-20% correction on a yearly basis.