Indian real estate prices across the country are 10-25% lower than their peak in early 2008. Bank interest rates are lower. Still, the vast majority of the exploding middle class, which aspires to own a home, is not taking the plunge. According to prospective home buyers, properties and loans are still expensive for them. Homes are still not affordable.

 The rates may have come down, but even today, the prices quoted by sellers are too high. Those described as 'affordable homes' are hardly homes. They are far from the cities. It will take another couple of years for that place to develop so that people can live easy. The developers have increased the prices and have started charging more for the parking space, which one has to compulsorily buy.

The lack of trust on the builder's ability to deliver homes on time and the fear that low interest rates could be a trap are also keeping many buyers away. Thousands of aspirants remain trapped with money sunk, as developers could not complete projects on time and in some cases where construction has been suspended, buyers do not know whether they would ever get their dream homes, or whether it will remain a dream.

According to an investor who booked a Rs 50-lakh house of one of the leading developers in NCR says "after having taken 30% of the payment, developer came back to tell us that it didn't have necessary licenses to start construction". He couldn't sleep for days wondering if he ever can get his dream home.

Some builders think that price hikes could destroy demand. "It is not very wise to increase prices drastically now," said Niranjan Hiranandani, managing director, Hiranandani Group, recently. "The market has just recovered and the buyers are returning." But these voices are very few and far in between.