The urge to buy, to want or own, is still there, but affordability has become a stumbling block. This happened in all economies. Up to 2003, we had a serious affordability issue. How did this get corrected post 2000? On two fronts — one, interest rates fell; two, mortgage rates that were 14-15 per cent in 1999 fell to 7.5 per cent and affordability improved dramatically. Also, systemic supply increased.

What kind of correction do you see in realty prices?

Who ever I have talked to in the realty sector is not expecting a huge correction. My own assessment is there could be 20-25 per cent correction in property prices. It has already started. In one way or the other, it’s passed on to the consumers. But consumers are waiting and watching.

How is industry coping with rising input costs, with inflation in general?

Ten years ago, the industry would have thrown up their hands and said, “we can’t compete”. But now they ask “how can we compete?”. They will change strategy every time something goes wrong. Inflation at 12 per cent is a tremendous opportunity.

I know it is hurting many. But the response has been amazing. This is also the time Chinese companies’ cost curve is increasing. Our newborn competitiveness is the new paradigm. To me, this is the silver lining.