Its bizzare when you have the fastest growing region not in India but the world Delhi / NCR and its property markets just simply collapse – they are down about 60% in Gurgaon and other NCR areas and in Delhi the impact is far less but still it worthy to note some of the properties are now below the the circle rate which in itself is staggering -
How can this be happening when the economy is growing at this rate and its not that the jobs have dried up or something instead the job scene is very healthy in Delhi / NCR and tops all the other city in terms of job creation though office space absorption has slowed down but then there was a over supply anyway so it has been set right .
What exactly is the reason for this collapse of the property market – is it oversupply , it was situation of oversupply anyway but they were being sold and even then there were a lot of unsold inventories but the market didnt crash but now it has and the reason is not that the white money supply has dried up – it is that the black money supply has dried up and is no longer being parked up in property on the scale it was being parked up earlier creating a property bubble and artificially pushing up the property prices and specially of the new projects which were highly overpriced at the white end of money and yet everyone believed it is cheap as property prices will keep rising , so in the end everyone got fooled by the artificial property bubble .
In the end all of us in the Delhi / NCR have been suckered by the Casino economy created by mega black money launderer’s who in turn made fortunes and laundered their black money into white – the real losers are the people who invested their hard earned money in property and will paying for it in the form loans for longtime of overpriced properties which were created by collusion of mega black money launderer’s and builder’s .
Now the builders’s who have made fortunes living it large are pretending not being able to hand over the projects because they have no money which is hilarious if you see their land bank and other assets .