The Indian real estate market, especially in Bengaluru, is at a slowdown in slowdown. However, it is not a bubble waiting to burst because some fear, according to Reddit’s recent post.
Concerns about the real estate accident are largely unfounded, as market dynamics do not show the characteristics of the speculative bubble, the Post said.
Understanding the “bubble”
The real estate bubble usually includes unchecked loans, inflated property values and a sudden collapse when borrows fail to repay their loans. This was the case during the crisis in the United States, where excessive loans led to an artificial rush of prices that eventually crashed the market. However, the current slowdown in India does not arise from reckless practices for loans or widespread financial crisis in banks and developers.
The current slowdown in the Indian real estate sector can be attributed to various factors, including the development of the labor market and progress in artificial intelligence (AI). “The slowdown is probably due to factors such as AI’s progress and the volatility of the labor market,” Redit’s user said. Economic uncertainties, interest rates rise, and a change in buyer’s feeling can also contribute to the reduced growth pace.
A slight correction against the market bust
While a certain correction of the market can be expected, it is unlikely that it will lead to a drastic collapse. “In the worst -case scenario, we can see a slight correction with prices that are slowly rising over the next few years, but this will not lead to a market bust,” Post explained. Unlike the US housing crisis, the Indian market is not strongly exploited, and banks maintain prudent loan practices.
However, post orders warn. A possible exception to the prospect, the Reditor claims, will be the financial decline of the largest real estate developers. “The only exception would be if the 1-2 biggest real estate players go bankrupt,” the announcement said. However, many developers, such as prestige, continue to undertake large projects without significant financial anxiety.
Hence, while the Indian real estate sector is experiencing a slowdown, it is far from being in a bubble on the edge of the cracking. “Being requires severe disorders to cause a major impact on the real estate market,” Redit Post concluded. For the time being, the market remains stable, with only gradual correction expected in the near future.
The post has sparked a discussion of Reddit with some users even saying they see no slowdown. “I don’t even see the slowdown around me. The brokers are still quoting high prices,” the user said.
Another user shared: “The service sector represents more than 50 % GDP, even a few % decline can affect Bangalore’s real estate market. Labor market correction will cause bubbles.”
One user shared that the Indian state of Rile would never “crash” because inflationary pressures “affect rich people in the same way as poor and middle -class people.” “Infect, there will be the opposite effect when rich people use it as a channel to incorporate all black money and buy as many land and property for dirt in cheap prices … The only” market correction “that will happen is that rich people will have most of the main real estate and be closer.”
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