When will the real estate bubble burst.
I live in a society where flats cost 94 lakhs but the 30% flats are empty, 50% are rented and only 20% are owners. So I have observed that few stupid fellows invest 20 lakhs and sell that property after 5-6 yrs for a mere profit of 4-5 lakhs. I guess every state govt shld bring more regulations here. Also those flats are not worth that money. Absolutely, mediocre development.
Who owns most of the flats ?
Ans: Banks , and they'll never let the rates fall cause that will also reduce their valuation, we'll have bigger problems in life with reducing housing rates
The odds of RE crash in india is Nil. Unless there is a large scale job loss. Large scale sudden job loss is unlikely unless there is a world war.
Why am saying this as the only reason because, of Sec 54 of the IT act. when people sell their house/land or have any capital gains, there is no other place to park other than RE to avoid Capital gains tax. A property brought in 1990 for 2 laks will be sold today for 5 cr. Even with indexation, you will have a CG of atleast 4 crs. that's 80Laks in CG tax. so, everybody will try to reinvest in RE. The feedback loop is complete. RE crash like how it happened in japan/china will never happen in India.
It depends on the economic value of the area as well but moreover from my observations I have seen people buy property and leave it unhabitated waste. Some people are earning huge rental incomes through it as well. It's a traditional secure way for investment and illiquid assets 🐈
Hmm. Correct These are not worth of 1 cr . We can build much more in this amount rather than buying flats..
