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Will there be any impact on the real estate especially for people who are planning to buy plot/apartment...?

Any thoughts..?

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Ravi.

As they say, when the US sneezes, the world catches a cold. We have seen this happen before. Bangalore, being an IT dominant city largely dependent on the US market, purchasing capability of people could be subdued, leading to a lull in the market. Add to it the rising interest rates, the road ahead certainly looks to be bumpy.

My 2 cents..
Apartment..Yes for sure. There will be reduction of prices, since most apartment purchasers depend on loans for purchase. High interest on loans plus volatility in market coupled with clouds of a double dip recession looming large will certainly lead to heavy slowdown in apartment market. Also keep in mind that the majority of apartment buyers are middle class people employed mostly in private service sectors which heavily depend on western markets for survival. When these markets take a hit, obviously there will be a sense of insecurity among buyers and would certainly think twice before making a huge commitment like buying a house..
Plots, although I doubt if there will be any considerable dip in prices, the upward trend as seen since last 1.5 years will slow down or might even come down a bit. People who had earlier planned to purchase plots on loans will certainly stay away from it, while people with cash would prefer to keep their cash "liquid" during volatility.

No need for immediate panic. As of now all is well.

In order to experience the impact of RBI Rate hikes itself takes at least 3-4 months.
Impact of US economy will be visible only after 6 months i.e. in 2012.

Definitely, there will be impact! So many of my friends who were seriously looking for property have put the plan on hold.

As far Iam concerned, there will no impact (no price decrease). Prices might get stuck at the same level areas nearing IT companies. Thats what I observed during recession.
Despite not many flats being sold, are we not seeing the builders keeping the prices same for months together ???

Thanks
Ram

I feel like, prices will see correction in Bangalore very soon due to US & Europe impact, high interest rates on loans, fall in stocks, etc.

Because now all the builders and individuals have increased the prices like crazy particularly since 6 months or so, it is out of reach for a genuine buyer.

It's wise to hold-on buying plans and wait for another 6 months or so..hope to see reality prices dip down very soon..

Cheers,
Kalyan.

My take on this is:
Buyer wants attractive rate as he is taking a risk in this ensnarement
Seller willing to sit it out.

Distress sales if any are going to be latched on by agents. Only the occasional plot might just come through.
Caveat: Only for plots, correction definitely ahead for apartments

More interest rates coupled with uncertainty in US economy will definetly results in hiring freezing most of the top MNC/layoff, They have already started doing this.
If things get worst (which in my opinion) are bound to happen in coming months so be ready to taste the sweat
Much better off don't feed in your money to real estate and get loaded with EMI gun with no bullets.

Also the underconstruction projects getting delayed should be no surprise in such situations. The buyer should be doubly cautious in investing in a under construction project.