RE:What would be the future of Real Estate in India?
by faisal khan on Nov 28, 2007 03:30 PM Permalink
if you look at the trend of how countries have developed all over the world then its clear that real estate has a long way to go in India.I dont see any slowdown in the near term. A lot can be derived from what are the investment trends in this industry and global biggies are setting up huge funds for real estate in India and also many big groups are looking for a entry in this spce in India. So going by these trends i personally dont see any slowdown.There might be price corrections but my guess is that India is far away from a bust in this sector.
RE:What would be the future of Real Estate in India?
by tenzin thargay on Nov 28, 2007 03:44 PM Permalink
Hi Faisal, I do agree that on a long term basis what you are saying holds true that the economy will grow (all of us are banking on that) but the fact remains that a) the US market real-estate industry is facing a melt down b) most of the investment in real-estate companies and funds in India is by the FII's (as against FDI) and FIIs as you know are more fickle minded c) banks in India have over-lend to the real-estate sector in India (a fact noted by RBI also which means that many people have taken loan to buy houses as investment options which thus is not real growth d) many markets esp Mumbai has inherest instabilities which will have correction e.g. the repeal of ULCRA (urban land cieling repeal act)act which should release lot of area for development e) real-estate market is cyclic and it had a downslide for 7-8 years till 2001-2002 when it started picking up, so it may be time for such a correction again. Guess it cleared some issues :-))
RE:What would be the future of Real Estate in India?
by senthil narayanasamy on Nov 28, 2007 04:03 PM Permalink
tenzin can you explain the role of the FII's Vs FDI. If you don't mind?
