Demand for luxury homes to fall in 2008

Industry experts are of opinion that the demand for 'high-value' or 'luxury' properties may see a drop in 2008. Most property buyers are looking for properties costing less than Rs. 50 lakh.

The developers right now are facing the challenge of meeting the existing shortage of 25 million residential units in India.

Currently, a 1,200 square feet property costs Rs. 48 lakh in Thane and Mira Road (Mumbai) whereas; in Chennai and Bangalore there are properties below Rs. 40 lakh available.