India has nothing to fear as it will not face any doomed reality like Dubai in the coming days, property market of India has already witnessed a surge in prices as much as 29 percent (in major cities in particularly). Thanks to this reality it shall be able to steer clear of any precarious eventuality and will also able to escape the kind of collapse that afflicted Dubai, such speaks in a confident note Keki Mistry, incoming head of the nation’s biggest mortgage lender.
Keki Mistry was appointed on Dec. 4 as Chief Executive Officer of Housing Development Finance Corp. (HDFC) and said in a Bloomberg-UTV interview, “Dubai was very different from India.” “India, the property market is largely end-user based; in Dubai, the property market is largely investor based.”
In the meantime, it has been found, central banks and governments across Asia have been taking steps to restrain property prices this year on concern speculative money inflows will generate asset bubbles. On the word of fund manager Mark Mobius, a number of areas in China and India may become the “next Dubai” on account of debt-fueled property investment.
“It wouldn’t be a country-wide situation; isolated pockets of disaster because of over-spending and over-leveraging,” Mobius, who oversees more than $30 billion of emerging-market assets at Templeton Asset Management Ltd., said in a Dec. 2 interview with Bloomberg TV in Hong Kong.
Whatever may be your standpoint, no view can be disregarded if we care to take the strange fate of Dubai into consideration. Dubai, the second-biggest sheikhdom in the United Arab Emirates, went from being the world’s best-performing property market to the worst within a year, emphasizing the challenge central bankers deal with in ensuring rapid credit growth doesn’t lead to bubbles.
Last but not least, Mistry states that profits in Indian property prices have been driven by demand for homes in a nation with an estimated shortage of as many as 30 million units and this makes all optimistic.
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.