A real estate exhibition underway right now in Mumbai dubs itself as “India’s biggest property expo” and promises “properties across all budgets”. It will flop, as many of the previous ones did, for the reality is that property in Mumbai has completely detached itself from the fundamentals of affordability and economic value.
People will come to gawk at the pictures and brochures on display and then swallow hard when they see the extortionate prices mentioned for property situated at non-commutable distances and which will anyway be delivered years later. The ones who actually end up booking or buying will often do so for the wrong reasons.
And what is true for Mumbai property is equally true for Delhi, Bangalore, Hyderabad, Chennai or even tier-2 cities and towns.
Indian property is a bubble waiting to burst, and the only reason why it has not burst already is the artificial constriction on its supply by the politician-builder-criminal nexus.
Prices are high not because of genuine demand, but because our netas and babus and businessmen do not want to let the supply of cheap land rise for fear of destroying the value of their own benami assets.
If you are not convinced, ask yourself: why is it that when property prices are so high their shares have performed so poorly?
Every politician, from the highest to the lowest, is invested in land and property for some reason or the other usually personal gain. We know that A got possession of a Rs 1,600 crore Herald House in Delhi through a trust they personally control. They even used the Congress party to fund it. We know B is a big property speculator. We know why C had to