You have the Indian economy in a tail-spin,equities are hammered out of shape,the job market is the worst in years,the Rupee is plunging to new lows and yet real estate is doing well…thank you very much.
The report below by 99 acres makes for fascinating reading.Most realty destinations have provided eye popping returns in the last one year.Most real estate agents are in bad shape and yet prices show no signs of abating.
[gview file=”https://alphaideas.in/wp-content/uploads/2013/08/MumbaiReport_99acres_180813.pdf”]
So what’s next?
All signs (falling transaction volume,low credit offtake,low rental yields etc) point to a bust in the real estate market.The catalyst?Elections.
2 replies on “Indian Real Estate is headed for a bust”
This is from an unbiased guy who loves both Equity & also invest in RE:
http://mbaclassdiscussions.blogspot.in/2013/07/rbis-data-on-housing-price-index.html
At long last, India’s overpriced real estate market could come back to earth with a thud. Developers trying to sell costly property cannot find buyers, who in turn find themselves squeezed out of the market by rising mortgage costs and inflated property prices.
Inventory, jargon for built-up homes that haven’t been sold, is piling up. Fittingly, a full 25% of total units remain unsold in Mumbai, where real estate rates are the least realistic; Chennai and Pune follow with 19% units unsold, 16% of units can’t be sold in Delhi and its surroundings, followed by Bangalore and Kolkata.