Crack Widens - Prices Fall

Developers have been forced to cut prices for new and under construction projects by 30-45%. Until recently, such discounts were not publicly reported and were available only to large investors. In the last two months, several large reputed developers have issued public advertisements about discounts, hoping to stimulate demand and lower inventory.
Industry experts opine that the core issue in the real estate sector has shifted from "affordability" to "necessity". Job insecurity and low business confidence have become key concerns. Studies reveal that during times of severe economic uncertainty, consumers postpone big ticket purchases. As such, developers indicate that they do not expect demand to resurface in the near to medium term, even if (1) real estate prices correct and (2) mortgage rates decline 200-250bp.

I don't understand why the RBI has vested interest by allowing restructuring of commercial loans till June 2009 [earlier March-09, end of FY], without the loans being classified as NPAs, has provided some reprieve to real estate companies with distressed balance sheets. Here are some interesting Paper Advertisements from Mumbai offering homes at Discount.