A large number of people in India have been led to believe that investments in real estate are a good investment. What, perhaps, they have not been told, or realised, is that this is good as long as it gives a you a direct return, in the form of a rent, or in the form of appreciation. What happens if you do not get rent or the property does not appreciate? You have large sums of money blocked in which cannot be liquidated at a short notice and in a worst case scenario you have EMIs to pay and thus less disposable incomes.
Once we stop looking at real estate from purely an investment point I think there will be greater sanity that will prevailing in the market