The Dubai financial crisis has popped up. We all need to learn a lesson or two from the same. Irrespective of once income levels , one should always be cautious on debt and never over borrow.
Over the last decade, more and more people are committing to huge EMIs and consider their flats as an asset class that is going to fetch huge returns. Indian laws that do not regulate real estate and the black money that is available have so far been able to keep up this myth to a great extent.
But I think we are at a point where such growth without any fundamentals get burst.Most of the real estate stocks are trading at almost 1/3 rd of their IPO value also reflect a gloomy trend ahead. Although the demand of housing is genuinely high, the sky high prices keep away the mass buyers.
The real estate players should learn a lesson or two from their global counter parts or else they might be in a bad state very shortly!!