“The real estate market in Bangaluru is not a bubble, but …”: Ridor opposes the interests related to slowing down, the debate starts

Indian real estate market, especially in Bangaluru, in the grip of slowdown. However, it is not a bubble awaiting the explosion, as some fear, according to a recent participation of Redait.

The publication says that concerns about real estate disruption are largely unfounded, because market dynamics do not show the characteristics of the speculative bubble.

Understanding “bubble”

The real estate bubble usually includes unspecified lending, enlarged property values, and a sudden collapse when borrowers fail to pay their loans. This was the case during the mortgage crisis in the United States, where excessive lending increased artificial prices that eventually disrupted the market. However, the current slowdown in India stems from reckless lending practices or a widespread financial crisis between banks and developers.

The current slowdown in the Indian real estate sector can be attributed to various factors, including the advanced labor market and artificial intelligence developments (AI). “It is possible that the slowdown due to factors such as artificial intelligence and instability in the labor market,” the Reddit user. Economic uncertainty, high interest rates, and the transformation of buyer’s morale can also contribute to low growth.

Simple correction in exchange for the market bust of the market

While some market correction may be expected, it is unlikely to lead to a radical collapse. “In the worst scenario, we may see a simple correction as prices grow slowly over the next few years, but this will not lead to a bust of the market,” explained. The post. Unlike the American housing crisis, the Indian market has not been largely used, and banks have maintained wise lending practices.

However, after orders warn. A possible exception to expectations, as Redditor claims, will be the financial fall of the main real estate developers. “The only exception will be if the main real estate players are bankrupt 1-2,” the post indicated. However, many developers, such as Prestige, continue to make large -scale projects without great financial distress.

Thus, while the Indian real estate sector suffers from slowing down, it is far from being in a bubble about the explosion. “There will be more disturbances to cause a significant impact on the real estate market.” Currently, the market is still stable, with a gradual correction expectation only in the near future.

The post sparked a discussion on Reddit with some users until they say they do not see slowdown. “I don’t even see the slowdown around me,” said one of the users.

Another common user: “The services sector represents more than 50 % of GDP, even with a small rate of decrease that may affect the real estate markets in Bangalore. Correcting the labor market will lead to the bubble explosion.”

One of the users shared that the Indian state of Riley would not “disrupt” because inflationary pressures do not “affect the wealthy in the same way they are doing the poor and the middle class.” “Infact, it will have an opposite effect as the wealthy will use it as a channel to convert all their black money and buy the largest possible land and property of cheap dirt …” market correction “that will happen is that the wealthy will have a greater share of major real estate and they will be more closer to creating a monopoly on that,” the user explained.