Following the recent terrorist attacks in Mumbai, India, real estate in India is expected to be significantly affected and Indian real estate market is likely to fall.

“The attacks will have a ripple effect on the volumes across the Mumbai city and the country,” Pranay Vakil, chairman, Knight Frank India was reported as saying on the Business Standard website.

Prior to the recent terror attacks, India was beginning to feel the effects of the global credit crisis with investor interest slowing.

The terror attacks in Mumbai, combined with the credit crisis, hits at a time of slowing economic growth in India, following an extended period of rapid growth nationwide.

The attacks are “going to add fuel to fire and will keep the sentiments subdued for a longer time,” said Anshuman Magazine, chairman, CB Richard Ellis.

“In the short term, there will definitely be a decline in business visits to the financial capital,” said Anuj Puri, chairman and country head, Jone Lang LaSalle Meghraj.

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