Videos on Real Estate Prices

Ajit Dayal speaks of an interesting video in RE prices, one year back:

  • He meets Sam Zell, a big RE investor worldwide, who said, There is no shortage of land in India, there is a shortage of zoned land. Politicians create an artificial scarcity by making land "commercial", "agricultural" or stuff like that. Licensing = corruption = artificially created bubbles.
  • After Lehman, investors took money out of RE. There was a crash, but they've gone up right back up.
  • Bank lending to RE companies has gone through the roof.
  • RE prices going up anyhow because of political links
  • Emotional attitude of "owning" properties is weird; it's really tax incentives and rental laws that creates demand.
  • Rental yields are like 3%.

This was a year back. Prices HAVE gone up. But we're even more in bubble zone. What happens?


NDTV says 1,10,000 units are being built in the outskirts of Delhi. Wow. (Hindi) Interestingly, the sales seem to be like this:

India Realty Sales

Inventory, they say is plentiful. More than two years of inventory!

The Omaxe promoter says there's not much of a bubble in the smaller towns (<25 lakhs) where you get the 1% interest-rate subvention in the budget. In the cities, the luxury segment is in trouble. And there are fights and all that. But the video is definitely interesting! (Hindi)

India’s real estate sector: A bubble in making? by tvnportal