Several experts have warned of an Indian property market crash if real estate prices do not fall . Despite requests to cut interest rates , Reserve Bank of India ( uk ) Governor , Raghuram Raja , has claimed that this would merely inflate the so - called " housing bubble " ; the chairman of real estate consultancy firm Frank India agreed and added that current low investor demand within the market is a result of elevated prices . Analysts predict that without significant falls in real estate costs , the Indian property market will experience long term correction and developers will be faced with large numbers of vacant properties .
Several experts have warned of an Indian property market crash if real estate prices do not fall. Despite requests to cut interest rates, Reserve Bank of India (RBI) Governor, Raghuram Raja, has claimed that this would merely inflate the so-called "housing bubble"; the chairman of real estate consultancy Knight Frank India agreed and added that current low investor demand within the market is a result of elevated prices. Analysts predict that without significant falls in real estate costs, the Indian property market will experience long term correction and developers will be left with large numbers of vacant properties.