I'm afraid Mr. Kamath may be right. Here in Kerala, the property prices have risen to fundamentally unsustainable levels. Stretches of empty land where no constructions have been undertaken have been blocked by speculators. Agricultural land prices (far moved from urban areas) are ridiculoulsy high, higher than corresponding land prices in UK!! This cannot be sustained and has to correct.
As an experienced investor in Kerala property market, what worries me is that in rural areas every other person has now become a property broker. I see this popular frenzy as a warning bell that heralds a crash.
But this is not to say that the general direction of real estate is bullish in the long term -- say, with another 10 years timeframe. I think it would be wise to wait for another six months before investing in real estate in India, and particularly in Kerala.
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