tag:blogger.com,1999:blog-19740856.post6639971056884686691..comments2024-03-28T23:30:16.420-07:00Comments on India's housing bubble: Mumbai builders in dire troubleUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-19740856.post-73113817300038295962008-06-15T06:06:00.000-07:002008-06-15T06:06:00.000-07:00Yesterday I was chatting to a friend who has a hou...Yesterday I was chatting to a friend who has a house north of Delhi which he claims is worth 5 crores. Give me a break. People in India seem to be on drugs, far away from reality. This idiot thinks I'll seel my house when it is worth 6 crores. I think India's real estate market is waiting for a big crash landing. Prices would go south by at least 50-60%. And this idiot can sell his house for no more than 2 crores in the coming years and too if he finds a buyer who has money. <BR/><BR/>Let the stock market go down to 12000 mark, interest rates go up to contain the very high inflation, let the gas prices go up at the pump and if US economy stalls at this point, India's economy is toast. All the world economy today is built on fals grounds of easy money and low interest rates. It is going to come crumbling down like a pack of cards. My 2 cents.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-5070289771472994072008-06-14T09:45:00.000-07:002008-06-14T09:45:00.000-07:00Foreclosure has already started in India since 200...Foreclosure has already started in India since 2007 but the nature of foreclosure is hidden. Large banks, who had exposure to housing loan segment have started a real-estate service arm, who are selling the defaulting property to another home buyers under the pretext of helping property selection. One can check the various ads by ICICI Property Services Group.<BR/> These banks took a position on both side & created the bubble. For an example bank A gave a loan to builder B then they gave housing loan to apartment buyers as home loan. [Pre approved scheme] That’s how bank made a risk less huge profit with arbitrage. This is the big hole in Indian Banking law, which does not have chinees wall policy for financial institutions. There is a high co-relation between bank’s growth & real estate price surge. <BR/>For further details one can asses the balance sheet of top 10 banks. <BR/>I do agree there was a huge inflow of foreign funds which also heat up the segment but this fund sponsored only large projects. Local bank & black money is the sole contributor for 60% market.Anonymousnoreply@blogger.com