@gsapte ,
It is always a cycle. I have seen this play out in Mumbai. Once, there was a large boom in real estate in Mumbai. A lot of investors invested in real estate then, Price of the flat prior to completion of construction itself used to grow fast. Even 20% increase in the price of the flat used to lead to 100% gains for the investors as these are leveraged purchases.
The cycle turned, market stagnated… for last few years all the investors ran away from the market. Existing investors are holding on to an asset that … though not deteriorating in price… did not have liquidity.
I heard that this is the story of real estate across few other earlier cycles in Mumbai as well… same was the case in other cities … same has been the case globally as well,.
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