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Indian realty at $60bn in 3 years!

Just when I was getting claustrophobic of being the only realty bull in the room, with steady defecting of my friends, somebody comes and beats me hollow. Too hollow.

What beats me are not the numbers (bah..they are just spreadsheets), it is the way they put confidence in and caution out with these statements.

Read the following estimate from International Business Times article (from Kaushik)

"The market for real estate in India will grow five-fold to $60 billion by 2010 and $90 billion by 2015, the Dubai-based organizers of a major realty fair in the capital has announced."

It goes on to add one organizer state "In mature markets of advanced countries, developers can at best hope for 5-7 percent return. But in India, real estate investment yields are in the range of 20 percent".

This is simply the nuttiest statement. All I have to do is ask "for how long dear" and "what will be the margins by the time you come in?"

"The main purpose of the fair was to help global developers understand the Indian market before taking final decisions since the size and exposure of investments would be large."

God help the delegates!

:) Falkor
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