Every honest hard working salary earner should stay away from real estate. It is just a means devised by the upper (business) class to loot money from the working class. On the one hand there are honest hard-working people in software, textile and gems industry who work in a globally competitive environment and earn precious foreign exchange for the country; on the other hand we have our unscrupulous politicians/builders/babus working under the protective maze of Indian license raj to make the honest people pay through their nose for the most basic amenities like housing. If there is one industry that should be opened to competition and FDI, it is the real estate industry. Let these scoundrels compete with the best and prove their worth. Of course it will never happen.
What value (Actual work performed) these people provide by holding acers of land;nothing.
This risk always existed in the urban real estate markets.
It has become more profound now since the price of the property at the time of commencement of construction can be drastically lower than the price at time of completion.
This situation encourages developers to delay the completion and accrue more value on their project.
Earlier, as the rates didn't change much between commencement and completion, the developer had no incentive to stall the project.
This is the reason why a lot of inventory sits idle and the market stagnates!!
