The real estate bomm which started in 2004 is fast spreding to smaller cities. B and C grade cities like Chandigarh, Noida, Gurgaon, Ghaziabad, Jaipur, Agra, and Ahmedabad are now hot destination to where money is flowing in billions. And it is for this same reason that many analysts fear a bust in waiting.
With the real estate prices of both residential and industrial properties in major cities have sky-rocketed in the last two years and with housing still remaining a major bottleneck for urban planners and developers, the bullish outlook on the real estate market is justified. And many are projecting a 15-25% growth for the sector in the next 5 years.
But there are many predictions that are bearish and that point towards a danger in waiting. The major point among doomsday predictions is that the entry of short-term players or speculators into the real estate market has skewed the demand-supply equation in many cities.