@TheQwertist がリツイート

Gurugram has an overall occupancy rate of 75%. This means that 25% of units are empty. Just sitting there, gathering dust.
Dwarka Expressway (sector 102-115) is now called The "Ghost Corridor" (why? occupancy rate is 45-55%).
You'd think that since there are so many empty units, the sellers should sell at a discount. Or the rents should come down.
WRONG!
In fact in the last 3-4 years, the Real Estate prices have gone up by 60-80%.
Why? because we have an incentive problem.
- Babus only get bribes when new projects are passed.
- The builder only makes money when he builds the next project.
- The broker make the most money on "under construction" units (5-10% commissions)
The new projects have to launch for the system to keep running.
Most of these projects are now being built for NRIs. Massive 350 SqMtr apartments, where no one lives
Why NRIs? Because they have the holding capacity.
Plus they are clueless about the ground reality.
Unlike a budget buyer, they are NOT desperate to sell. Or RENT. They can continue to hold the units, and keep paying the builder a fat maintenance every year (in the hope the unit prices will go up some day for their older units, which now compete with the new launches).
And, there are enough of them to absorb the new supply.
So we get a market: where the end buyer does nothing with the unit. The new units keep flooding. People who actually live in the city keep seeing their rents going up.
This game already happened on Real Estate. And, is now happening in the Indian stock markets (IPO's where you're buying from fat promoters)
Basically: you're an exit liquidity for someone else's problems.
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