As global real estate transactions slow and some countries show declines in prices, the new head of India´s largest private bank, ICICI Bank, said real estate prices in India need to fall 20 percent or more.

Following an exponential real estate boom in recent years, particularly in prime urban centres such as Mumbai (which was recently reported to be one of the most expensive cities in the world to live), the market is expected to see correction as international property investment slows during the global economic downturn.

India, it appears, needs to undergo its own process of market correction.

Prices need to fall by “maybe 15-20 percent, or maybe more”, Chanda Kochhar, the soon to become chief executive of ICICI Bank, was quoted as saying.

“Piecemeal corrections have already happened … But they also need an adjustment in the paradigm.”

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