I personally was expecting the real estate market to start cooling by mid 2013, but according to the article below in the DN, this has already started.

With the interest rate rises curbing debt-fuelled speculation, what do people think the magnitude of correction will be?

I am thinking something in the region of 20-30%. I have not done a through analysis, just based on what I have seen happening in the West.

http://www.nation.co.ke/.../-/44y83oz/-/index.html

Yet another classic article from the Nation. Offering not a shred of evidence, other than a few anecdotal interviews from what one can only assume are a smattering of the journalist's friends (or, worse still, the only one's who'd answer the journalist's calls). For a correction of 20-30%, there would have to be a deep, prolonged recession, i.e. negative GDP growth for at least a couple of years. To put this into context, the U.S. has been in a state of recession / stagnation since 2008/2009 and only seen a correction of 30%. Ireland has seen a 40% correction, but again, the entire country has had to be bailed out, banks have collapsed, etc. Spain has only seen a 17% correction to date.