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!!
4 comments:
Thanks for comment on my blog. I could not really understand the dubai crisis. Is it the after effect of global melt-down? I wanted to write about it but need some more research...
Offtopic: BTW did you ever thought of moving towards your own domain? I thought, then gave up.
KM
http://greenbuck.blogspot.com/
It was very interesting for me to read this article. Thanks for it. I like such topics and everything connected to this matter. BTW, why don't you change design :).
@KM Thanks for your comment. No plans for getting onto own domain. Main agenda is to write regularly!!.
@Anonymous..Design chnaged now.
you cannot find greedy players then ones in real estate. At least in bangalore suddenly its just start of 2010 and all the builders have jacked up prices by Rs 400/500 per sq foot. Specially the ones in Sarjapur road, whitefield. The occupancy rate remains the same. in apt complex.. but the prices are shooting . And people are running behind the properties as if they will mis the bus again.. is this sign of another Bangalore burst.
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