POV on correction and bubble burst in realty sector

1. I do agree the prices in Delhi have softened a bit owing to freehold and lease hold confusion and not because of scarcity of money. There is no dreath of money yet.

2. The stabilization of prices and a dip in prices is always a healthy sign. This means real estate is consolidating at a certain price and taking a breadth for a next big leap. The more time spent in consolidation zone means a bigger leap. The theory here is simple in such a scenario the inventories which are in weak hand move to stronger hands and then command better premium.

3. In Gurgaon the flats market never come down in terms of prices. There is hunger for flats as lot for end users want to move in there own houses. I was amazed to know that people have moved in Tulip Ace on Pataudi Road where still the infrastructure needs to catch-up.

4. I have also realized that people from all parts of country and world have investments in GGN. With Dollar appreciating 20% in last few months lot of NRI’s have invested in GGN recently. They have made down paymnents in most of the cases there by having a direct benefit of 32%. Dollar at an all time high in my view, this has brought in lot of money into India.

5. Interest rates are going to and will have to soften in next few months, which will bring more home loan takers back into real estate.

I have seen these kind of phases and negative people scaring the positive people with statements like ‘World is going to be over’. This is not going to happen and if it happens even people who are not invested in RE will be impacted.

Net Net this is a great time and in my view a time to buy right set of properties at right price.


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