Mr. Bhatt, the Chairman of India's largest bank, SBI, has some good news for people seeking to buy homes. Speaking to a leading daily, he observed that interest rates may stabilise or head even lower over the next six months as the liquidity in the system is pretty comfortable at the moment. However, he refused to comment anything on what would be the scenario six months later as he felt that the economy was still in a pretty dynamic state. Mr. Bhatt further added that he foresees SBI's own home loan book doubling this fiscal vis-à-vis last year.

Please bear in mind that perhaps these projections do not take into account the demand that will result if developers bring down their price meaningfully. Driven by their own frenzy to get rich quick, the real estate developers have started to build too much property. The projects under construction are probably 5x what the actual demand will be at the price points being currently quoted. Drop the price by 20%, and the demand could jump by 100%: still leaving an oversupply of 2.5x. But drop the price by 40%, and probably every square foot available will be sold out".
Looks like there is ample room for the prices to come down and if they indeed do, the resultant growth in home loan disbursals could only be imagined.