Majority Indians feels that real estate prices never fall.
majority of real estate players feels,even though there is a real estate bubble in India but that bubble would never burst
We all know what happened in the United States after 2006.
majority of real estate players feels,even though there is a real estate bubble in India but that bubble would never burst
every one argues that indian population is raising but land never raises.so,they argue,real estate prices never fall.
one research analysis found,that there is enough land to house India's huge population.
“If you place 1.2 billion people in four-person homes of 1000 square feet each, and two workers of the family into office/factory space of 400 square feet, this requires roughly 1% of India’s land area assuming an FSI(floor space index) of just 1. so,There is absolutely no shortage of land to house the great Indian population.
The reasons behind why the Indian real estate bubble is unsustainable.
- Indian real estate has now become totally unaffordable. the average users have to sell their twenty years of future earnings to afford a house.”
- The employment situation remains extremely grim. Crisil estimates that “employment outside agriculture will increase by only 38 million between 2011-12 and 2018-19 compared with 52 million between 2004-05 and 2011-12.
- The reversal of easy business cycle, scarcity of capital, tight monetary cycle in domestic and international market will force scheduled commercial banks to deleverage their balance sheet over the next three to four years
So, in the end, all bubbles burst. It is just a matter of time.
take home message is -that days of earning huge returns from Indian real estate are more or less over.
Doctors,please be cautious with your investments in property !
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