Real Estate prices seems to be all time high, not good?

Hi Ajay, I too have read from property pages that the land and apartment prices in all metros are rising. It is really high even in other major cities. I too feel that it is an artificial boom and it may not last long. Same thing happened earlier in the mid nineties and then the prices crashed and stagnated for a long time...All the best and have a nice weekend

When I was 18 years old I was left money in my great aunts will. It was enough for me to buy a small cottage. Property prices were low and we were in a recession at that time. So I bought the cottage for £43,000 in 1991 when I was 19 years old. Downstairs it had a medium sized lounge and tiny kitchen. Then the stairs went up to a bathroom and a large bedroom. Later on I made the large bedroom into a medium sized bedroom and a small bedroom because it was double aspect. Over the years prices of homes went a lot higher and my home country came out of its recession. In 2005 when I was 33 years old in 2005 I sold my little cottage for £110,000 and bought a two bedroom terraced house in a different area for £117,000. Prices of homes went down again after reaching a high in 2007. I sold my house in 2009 when I was 38 years old not much more than I had paid for it five years previously. This year I bought my three bedroom semi detached bungalow for £157,000. I have got put a new kitchen into it and got floor coverings put down. Even though home prices went down the prices are still too high for many people with low earnings and a medium salary. The average salary here is £17,000 per year. People can get a mortgage for three times there annual salary but they must pay a deposit of 30% of the value of the home being purchased. There are many people and they need a home to live in. Whether it is rented or bought a home is pricey.

Well I think prices usually justify themselves. The price goes up/down depending on the demand, it's just the way the market works. So I mean, what I'd do is just wait for the demand to go back down if you foresee it going back down in the near future, but otherwise yeah, it's justified. Markets regulate themselves =P

Hi ajaysinghbaghel, I think real estate prices have come down from their highest level 2-3 years back. The real estate prices have come down but the cost of construction is continuously going up. The cost of construction comprises of land cost, material cost and labor cost. The cost of all these items have already reached dizzy heights. I therefore feel the real estate prices are not likely to go down any further. The builders are already finding it difficult to take up new projects at present rates.