1.false & overhyping of india's business prospects by foreign agencies to tempt india for opening market.
2.free run by govt. to speculators and black money in real estate.
3.greed among indian people.they rushed to buy real estate as if no tommorrow and encouraged speculators and black money.
4. too liberal distribution of real estate loans by banks. now most of the banks are facing sub-prime crisis.
prices rose by 300%-400% and this bloody UPA govt. was sleeping and happily supporting it. high real estate prices and high rentals are also major reasons for inflation.medium business can not even rent ,forget buying a property for office in metros.also genuine house buyers,retired person's dreams were shattered due to high prices.imagine 300-400 % rise in 2.5 years.even decent upper middle class could not purchase any house now people should maintain patience and wait till this year till prices are at realistic levels and real estate bubble bursts with a loud bang as was few years back.
RE:bubble
by Vijay K on Jul 29, 2008 06:00 PM Permalink
Have you ever seen a Middle class long term Builder?
If a builder has been in the construction business for long.. He has made such a huge margin that he owns prime properties worth Crores and Huge long Luxury Cars..!!!
Just to tell you guys.. it is the huge margin that the builders have that made them earn all that..
RE:bubble
by Ram Krish on Jul 31, 2008 09:56 PM Permalink
Why blame the builders for the stupidity of buyers.
You will find that many (if not most) of the buyers in the last 5-6 years were youngsters just out of college OR maybe with a few years' experience. The common characteristic amongst them is ignorance. Firstly about what a downtrend looks like and how it can ravage ones finances. Second, about the fact that no one can possibly guarantee a high and ever-growing salary for 20 years. Thirdly, about being savvy enough to ask questions such that they are sure of paying a decent premium and NOT be robbed blind. But most important of all, in not having the common-sense to understand that NOTHING on earth can be achieved overnight, especially wealth, by flipping and speculating in Real Estate.
At the end of this decline (which, in my opinion will take RE down by 50% to 75%) we will have a whole generation of youngsters much wiser though much poorer.
Rocker is absolutely right. The smart will wait to buy property at distress prices. And the foolish will learn from the school-of-hard-knocks and get smarter for the next cycle.
