Real Estate Rally in India is in its last leg. One could tell by the kind of freebies doled out. Recently, my builder, with whom I had booked a house 3 years ago and the project still under construction, came out with 25:75 scheme. Pay 25% now and the rest on possession. The fact is he is not able to sell his inventory even after 3 years of launching the project. I'm sure a sizable inventory is left unsold or else he wouldn't have done this.
Across Mumbai you see an epidemic of 20:80, 15:85, 25:75, 30:70. Its a symptom? The rally has lost steam and is on life support. People are just not buying houses. They are waiting for the fall. And the fall is inevitable. Its just being delayed. When these projects of 20:80 come up for possession and investors start defaulting, the entire real estate will have a meltdown.
Its just 3 years away. May be even less.
Across Mumbai you see an epidemic of 20:80, 15:85, 25:75, 30:70. Its a symptom? The rally has lost steam and is on life support. People are just not buying houses. They are waiting for the fall. And the fall is inevitable. Its just being delayed. When these projects of 20:80 come up for possession and investors start defaulting, the entire real estate will have a meltdown.
Its just 3 years away. May be even less.
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