The Indian real estate sector could be headed for a China-like situation with high unsold inventory and ghost towns
As the Chinese meltdown progresses, it is getting clearer that at the heart of the matter is the Communist government’s intention of diverting public attention from the debacle in the real estate market.
Before the equity boom, the Chinese government tried to fuel the property bubble but could not manage it and had to create another bubble to allow investors to recover money. This ultimately led to the equity bubble which has just burst. The real estate projects have turned into a dead investment and the properties now represent ghost cities. Check this photo gallery to get an idea of what a ghost town looks like.
Some of the recent satellite cities in India have a similar look. It becomes eerie after sundown when these dark structures rise above the ground without a single light in them. Is the Indian real estate market in a similar kind of bubble as their Chinese counterparts?
Around 77,460 apartments worth Rs 3,044 crore remain unsold in Mumbai, Thane and Navi Mumbai alone. The total inventory will take 30 months to sell. A survey done by JLL found out that sluggish sale is probably because of most of the ready units, which account for only 3.35% or 2,600 units, are priced above Rs 1 crore.
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About us
MCHI-THANE has always been very clear that fine housing complexes and shopping malls cannot stand in isolation. A great City is the sum total of great buildings, great infrastructure and great people. MCHI has been committed to growth of the real estate sector and is credited with the harmonious growth and rise in quality and standards of construction in Thane City in the past decade.
Its aim as an Association of Developers has been to seek rational rules and regulations which are uniformly applied across the board as this will to a great extent result in speedy construction, cost reduction, fair pricing and a push for better quality standards at par with the developed world, with a high level of transparency.
Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com
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