Rahul Saraogi making a case for real estate and infrastructure in India.
I agree with both the points of view on real estate. As some of the posts have alluded to, there is indeed an overcapacity in real estate sector currently. Additionally, the rental yield in India is pathetic when compared to developed countries. Finally, the real estate prices continue to be out of reach for a lot of us and affordability is a real problem. At this point there is quite a lot of pessimism and it does seem like there is no light at the end of the tunnel.
However, the same pessimism gives rise to the conditions for the next recovery. Real estate is a cyclical sector and the next recovery will follow as surely as day follows night. When will the elusive recovery come, unfortunately nobody can predict. It might take a further 2-3 or even 5 years. But in my opinion the time is right to start building the real estate portfolio. Because the recovery whenever it comes will take everyone by surprise.