Real estate bubble in India?
Of course there is no Real Estate bubble in India.
This is what the builders, the govt of India, RBI, the Chairman of the biggest housing finance company / bank all of them tell us.
Why do they tell us?
Because if suppose property prices fall 40% in Mumbai….what happens to the balance sheets of SBI, Hdfc, Icici, Kotak……etc.?
It falls about 30%. Or thereabouts. Then what happens if the NPA explodes?
Well banking stocks will be available for free.
But what if a ‘white’ man – the bluest of blue – Washington Post say it? like this?
IsItPossible
every bubble will eventually pop, but the bigger question is “are you prepared for it?” what will follow once the bubble burst….
Yogendra
Our Indian people are emotional. They want their own house at any cost. It gives developers more boost. Nowadays the middle class people (I am also from middle class) are buying second home number xyz kms away from there current residence. They are following somebody from their relatives. However they are not aware of how it will be costly to them in terms of maintenance. Actual buyer who don’t have their own house are not able to buy since property price is very high and at the same time many are buying second home taking big housing loans. Demand and Supply both are there but real buyer is missing the boat. Whatever it be.. I am real buyer staying on rent, sitting on cash and waiting for bubble burst.
Sambaran Mitra
In Bangalore, lots of ads are coming up from well known builders with flats starting from 20+ lakhs. May be those will be very small studio/1BHK flats. However, I feel good that market is making space for apartments in 20-40 lakh budget range.
rajanish
Hi Subra, I have got your blogs just before 2 months and that was the lucky day. Going through your blogs I have tried to understand and love money. One thing to ask you..I am 35 years old and going to buy home for 50L. I want to here this decision from you. I am paying monthly rental for 15k. Planing to leave fro my home town after retirement. I have two children and hopefully they will stay here (Delhi NCR) after my retirement. Thanks