2008 will be remembered as the worst year for Real Estate sector. Artificial bubble created across the world due to availability of easy loans was burst in 2008 and American mortgage crisis crippled the economy of this mighty nation. Investments like Lehman Brothers and Bear Sterns collapsed in 2008 due to the mortgage crisis. Real Estate stocks like Unitech and DLF were corrected by 80-90% in the 2008 alone. Many people bankrupted due to the unexpected collapse of the real estate market.

Real estate 2009 predictions:

1. We will see more downside for real estate in 2009. Property prices will further correct by 30-40% in the first 6 months of 2009 and may recover in second half of 2009 due to low interest rates.

2. Prices in suburbs will correct more as people will look for value before making new purchases. Developers who are on huge debt are hiding their liquidity problems but they are not in a position to face this crisis for more than 3-4 months.

3. Developed countries like America and European Union will further go into recession. More than 1 lakh IT people will lose jobs in the first 6 months of 2009 which will further spoil the consumption power of people.

4. Fear of job losses, careful lending by banks will make the troubled sector into depression mood. We will see some corporate bankruptcies in 2009. It is waste to talk about small developers who rely more on advance payments and bank loans.

5. Despite RBI requests, banks will become more cautious in their lending to corporate sector.

6. Affordable housing will become talk of town. Affordable housing developers like Tata housing and Patel enginerring (studio model) will face no problem as there is more demand for affordable housing.

Real Estate advice:

I will regularly update about changing trends in real estate sector especially in Andhra Pradesh/Ongole. Those who are sitting on cash should still wait for some more time to get better bargains. In Ongole, brokers are still fooling investors by talking about Airport etc.

Ongole real estate:

2-bed room Apartment current price:Rs 22-25 lakh.

3-bed room Apartment current price:Rs 25-30 lakh.

If you still want to buy real estate property, buy from a reputed builder.

Real Estate quote: “One of the important reasons why people choose to invest in real estate over stock markets is that real estate is tangible – you can touch it.”

Good Real Estate news:

1. Putting money into property was one of the most secure ways of protecting against the global recession – Affinity Solutions.

2. Home loans and personal loans will fall more due to global recession.

Read this article on Real Estate to know “how a real estate man is trying to fool innocent buyers.” Don’t buy a property at current levels by reading such articles unless there is a strong positive stimulus near your site.