The cirsis in India`s real estate scector will cause a much needed course correction
by the industry. It would start building homes for which there is a genuine demand
and not just for a small minority of speculators. Much of the housing shortage in
India is of the low inccome end segment wit prces usually strating at INR 60 lakh
plus in the big cities. The exuberance in this catagory was largely speculative,
driven by cheap money. With high leverage fuelled supply of cheap money coming
to an end, the demand for expensive housing has idsappreared overnight.
As the market reverts to fundamentals, the disnonnect betwen demand and supply
has disappreared overnight.
Best Wishes!
Sunder Thadani.
Your Friend in India.
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