India’s property market has been on a tear because the pandemic, with costs in top-tier cities like Mumbai, Bengaluru, and Hyderabad climbing as a lot as 30%. Surging demand, restricted new launches, and investor urge for food have saved the market buoyant.
However whereas many await a correction citing excessive EMIs, flat salaries and regulatory headwinds some argue that banking on a crash might be a expensive mistake. A latest Reddit put up captured this sentiment, triggering a wave of reactions from customers, who consider that Indian actual property, particularly in metros, is unlikely to lose steam anytime quickly.
In a put up that rapidly gained traction, a Reddit consumer cautioned towards the assumption that India’s actual property market is poised to crash. “Those that subscribe to this can miss out on ever shopping for a property in high cities,” the consumer warned.
Countering the concept AI-driven job losses may set off a collapse, the consumer wrote, “A lot of the arguments for value crashing depend on the fears of AI eliminating jobs… Simply think about if AI actually destroys the roles at such scale, then not solely RE however the whole financial system will go into droop… My thesis is chance of this occurring just isn’t very excessive. Traditionally world has solely moved ahead economically, and it’ll proceed to take action.”
They argued that main cities will proceed to dominate as a consequence of concentrated infrastructure and authorities spending: “The roles will all the time be concentrated into large cities… Govt does lot of spending there and has vested pursuits into cities doing nicely.”
Dismissing the concept actual property is ever “low cost,” the consumer added, “A 3bhk was costly at 50 lakh in 2010… costly once more at the moment at 2 cr… and it’ll look costly in future as nicely.”
The put up resonated with many. One commenter stated, “All my associates… who’ve purchased properties… paid value that they thought was very excessive… Issues can solely change if govt convey insurance policies that convey jobs in t2/t3 cities.”
One other chimed in, “Common house value/common wage of any main metropolis have all the time been 10–15x… If market crashes, individual with 5 Cr liquidity will purchase 10 properties… Earn extra so you can afford extra.”
A 3rd added, “Agree that the doomsday state of affairs of AI wiping out jobs en masse appears unlikely… Your level about large cities is spot-on… most jobs, particularly high-value ones, cluster in cities.”
Others echoed that sentiment with real-life examples. “Even when AI had been to remove all the roles, RE in large cities will stay costly… I have been listening to about Pune/Mysore killing RE costs in Mumbai/Bangalore for 30+ years now. But, it hasn’t occurred.”
Highlighting the sluggish tempo of growth even inside metros, one consumer famous, “Once I moved to a location in North Bangalore… solely now almost after 15 years it seems like part of Bangalore. Think about how lengthy it will take for tier-2 cities to come back up par with tier-1?”
Their conclusion: “Possibly 3 generations down the street… RE will slowdown/crash. Till then, proudly owning a home in tier-1 if you’re anticipated to work there for greater than 10 years is a no brainer.”
