Wednesday, December 24, 2008

Indian real estate has pretty poor fundamentals...you are going to see much worse - Ajay Bagga, Chairman, Financial Planning Standards Board of India

There has to be significant price corrections:

On real estate, you are going to see much worse earnings de-growth happening. I would still be negative on the sector, despite rates going down.

The news of mortgage rates being brought down is one thing, but the demand pick up is not there and there has to be significant price corrections on the ground for a demand to pick up again.

Right now people are not even buying cars, so buying houses is out of question.

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2 comments:

  1. One more.

    For some strange reasons, I am seeing a trend since last 2 months that some people have started talking the same language that I have been talking since last 18 months.

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  2. Why did it take this guy such a
    long time to say this. I guess smller brain ? Something that a
    non professional investor like me could predict an year back. Ha..ha...ha. There are 2 alternative for builders, get screwed in the decline by not reducing the prices Or get small money by reducing the rates.

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