Housing prices elsewhere have collapsed because of the recent economic prices but the India housing bubble still remains inflated. The price of houses have shot up and because of this the EMI rates have also increased. But, if we compare the income level and the EMI charged with the income of 15 years ago, we will then realize how far we have come. The EMI which the bank is charging is all because of sudden increase in income, low interest rates, incentives on taxes and so on.

The origins of Indian property market can be traced back to the years of 2000 and 2001. The home loan rates fell to 7.5% and the housing sector remained that way till 2005. Low interest rates on houses was the driving force which made most of the Indian population to buy houses at that time. Rates of houses in the Indian metros like Mumble, Kolkata, Delhi and Chennai rose up and became out of the reach of a common man.

The recent economic meltdown has seen the India housing bubble to burst. Though the Indian housing rates rose up rapidly from 2002 till 2007, the economic crisis in 2008 affected it badly. This happened because of lack of planning, shortage of proper resources and infrastructure, blind folded approach towards growth in the form of urbanization. Scars of the bubble burst can be felt even in the year 2009. Although, the property developers are trying their best to attract buyers by giving out exciting incentives and price cuts; but not much of use has happened because of it. According to a survey conducted in April 2009, it was found out that the prices of residential property in the most sort after places like Bangalore, Mumbai and Delhi has fallen drastically.

The survey further concludes saying, the property prices are predicted to decline in the next four years by at least 30%; causing the India housing bubble of high price property to burst in the air. This means there is some good news for potential property owners as this would be the right time to invest in property related concerns.