A nice paper on economics of home buying. The region discussed in the paper is Manhattan but could be applied to all other cities as well (provided you have data). It is written by Jason Bram of NY Fed.
He looks at price/rent ratio in Manhattan to show homes are expensive in the region. Hence not the time to buy:
Much of the nation has experienced steep declines in housing prices in recent years. In Manhattan, however, apartment sales prices did not fall as sharply. A study of price-rent ratios in the New York City borough concludes that, while apartment rents are driven by supply and demand forces, apartment sales prices are driven in part by speculative factors, and they sometimes rise or fall to levels incommensurate with prevailing rents. Manhattan price-rent ratios, although off their 2008 highs, are still up dramatically over the past two decades, suggesting less financial “value” today in an apartment purchase there.
I am not sure any of this analysis works in Mumbai and in other cities. If you have the money (black +white) buy and don’t think about prices. They are likely to go up only.