Does anyone know the extent of leverage in real estate investment in Nepal? Without that data, any prediction about the future defaults is mere speculation. Given the interest rate stays at the level it is today (I belive double digits), a faster drop in price may be observed. But it all depends on leverage. As Pire pointed out, if the real estate investors are mostly based on equity, then the price may not even fall as they can afford to hold on to their investment until they get their price.