Talk:Indian property bubble

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http://indianeconomy.org/2006/12/13/is-there-a-bubble-in-indian-real-estate/

I am removing the line "However many experts feel this is a bubble waiting to burst, and Indian property prices are likely to shed about 20-25% in the next 6-12 months" and adding "[citation needed]" tag to the next one. Both claims should be substantiated but the first one is a sweeping generalization made on the basis of a single blog whose veracity/authority is not plausible. A few other untenable lines too.Nshuks7 (talk) 16:41, 24 November 2007 (UTC)

[edit] Authenticity

Although there has been speculations in some quarters that there indeed a Indian property bubble it neither supported by solid facts or by reputable agencies .In fact evidence points that this is not so these speculations are a result of panic caused by the recent bubble in the American housing industry and the sub prime mortgage crisis . Although the prices in Some parts of India particularly in the metros have been increasing alarmingly this is by no means a universal phenomenon and this increase is mainly due to the increase in purchasing power of the Indian middle class caused by the economic growth of around 9-10% year-on-year.This growth is however not properly balanced through all the sectors agriculture and other rural industries like textile is registering only 3-4 % growth .Thus there are not sufficient grounds to speculate such a crisis indeed does exist .All the above data is available for verification with the Indian statistical bureau,coming under the ministry of statistics and program implementation ,New Delhi. I have changed the article to reflect this.Manquer (talk) 12:54, 26 November 2007 (UTC)

Actually, the original author is right in pointing out that the reason for real estate prices zooming up was the sudden drop in interest rates by all public lending institutions, and not the Indian economy's growth rate as such.Nshuks7 (talk) 13:06, 29 November 2007 (UTC)

Nshuks7 i would be inclined to agree with you if we were talking a year or 2 ago.Truly then the interest rates were low,however in the past year particularly the interest rate have been going up steeply ,however there is no let up in the increase in real estate prices,However i m no economist and i cant explain a theory on my misconceptions.In my opinion and personal experience it is more to do with the ability of people to spend more than any interest rate drop,In developing economy like India a stable and high paying job is deciding factor in a real estate decision, interest rate affects the price range a person is looking for to invest in .Manquer (talk) 15:17, 8 December 2007 (UTC)