A recovery in India's property market might stall analysts warn. Prices dropped like a stone after the credit crunch, by 50 per cent. Developers of high end schemes were hardest hit as the nouveau riche became the nouveau not-so-rich. Speculators who hoped to “flip” new build apartments were caught out too.
Now, prices are 20 per cent up from their lows of last year, but some commentators say this recovery has over-reached itself and that values in smaller cities could drop again. Big cities like Mumbai, New Delhi and Bangalore are where it's at they say, because their populations just keep getting bigger, pushing up the demand for housing. Investors are buying land ear-marked for high end schemes from cash-strapped funds, to build mass market housing for which there is firm demand.
However, other investors consider India yesterday's success story and are heading to Europe and the United States where returns are higher.
(All The World's a Home : Global Property News)
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