real estate buble ready to burst?

Q: hello.. i heard that the real estate in india has a very shaky future..please discuss.

Subho Mallik, Delhi

10th February 2014

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Well, as far as i know, no asset class including real estate can remain inflated for an indefinite time. At some point, these will become big enough for a crash. A sudden fall, however, will be detrimental to the financial system and the economy at large. Therefore a slowly deflating bubble which implies a phased price correction is actually something that is desirable.

Nishant Pathak, Gurgaon

10th February 2014

Comment

Kolkata and Hyderabad are the only two geographies which are efficiently priced; since the investor participation is nil, there is no sudden spike or speculative tendencies. Both these markets are in a productive spot and have never had an asset bubble.

Chennai too is growing but has inherent problems… the city is expanding but is also seeing latent stock…

Alokesh, Kolkata

10th February 2014

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yeah even in mumbai there is a huge demand but exorbitant prices makes property unaffordable for most buyers.The price level here is way above the average price level of India.So mumbai is considered an unproductive arena and the funds inflow reduced considerably..

Vinay Dixit, Mumbai

10th February 2014

Comment

Investors are now leaving the saturated market like mumbai and delhi to invest in pune, bangalore, which have now become quite popular with PE investor and are seeing a huge influx of funds.

Deepti Baragur, Pune

10th February 2014

well last year had its share of problems like subdued sales, piles of unsold inventory and builders going bankrupt, these might also be present in 2014...but its very difficult to say for sure as the market does not have a fixed trend.

Srishti, Gurgaon

10th February 2014

Comment

India also sees regular uncertainity in politics, liquidity remains an issue... not to forget the high interest rates prevailing that leads to cautious sentiments by prospective investors which play spoilsport for the real estate sector. Also the increase in prices and the not so increase in income also spells bad news for the sector..

Bobby, Noida

10th February 2014

National Capital Region, which includes New Delhi is investor-driven market and many of the property is being sold in sectors which may remain uninhabitable for a long time.

Sukhpreet, Delhi-NCR

10th February 2014

yea..Political uncertainty, liquidity issues, high interest rates and cautious sentiments are expected to underpin the real estate sector during the year. with the big question of 2014 being that wil the asset bubble inflate further or burst??

Pallav Singh, Faridabad

10th February 2014

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