Tuesday, October 27, 2015

Is Indian Real Estate 'Too Big to Fail'?

Those expecting an overnight crash any time soon will be disappointed:

 Over 7 lakh unsold homes in eight major cities including Delhi NCR, Mumbai, Bengaluru, Pune, Kolkata, Chennai, Hyderabad and Ahmedabad

There are simply too many vested interests in real estate to allow it to slip into panic-led chaos.

Politicians, real-estate developers, banks, NBFCs– all of them have too much at stake.

Then there are hard-working, salaried employees paying EMIs.

This is an industry which reaches a majority of India’s population.
Like Wall Street in the USA, India’s real estate industry is too big to fail.

At worst, it might see a Lehman-like moment.
A few builders will vanish but, as Wall Street figured out, a few casualties – like a Lehman or an AIG – are acceptable collateral damage in the overall scheme of things.

But the Government will cobble together a bail-out of sorts. Builders will be rescued, homes will be saved.
Read more at - Real estate is dead, long live real estate

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