Most house in small Cities and rural areas (where 90% of India lives) are still build with self financed money + relatives help.
Many people build house block by block as the money comes by. They build small single floor first then years later build second floor.
Even in formal sector ( which employs just 10-15 % of all employed people) most people want to clear house loan asap because they are not confident that their income would remain study . ( Though the banks might believe otherwise). people rather save money for health care and to support children after retirement and of course to marry the daughter. Hence they try to take minimum loan and try to pay it asap .
Till now price of Housing in India was kept Artificially High. Thanks to Capital Incentive Growth in MMS Decade. This had resulted in Sky High Price of Housing which fueled Inflation.
All the Black and Informal Money was sucked up in Real State and Gold.
The Housing went out of the reach of Common man.
The prices are not rising now but neither they are not coming down.
This is because lost of Black and Corruption money is invested in it.
There is lot of Inventory blocked with these so called INVESTORS, which is literally unoccupied.
These INVESTORS are just sitting on the Inventories but are not selling them because that will be a nett loss on their part and real buyers are not in the position to pay hyper inflated price.
Builders are also stuck with the project they bought land at high prices in UNACCOUNTED CASH, and cannot dispose off the Inventory at loss.
Everybody is doing wait and watch.
This stagnation in Property Market will continue till Inflation brings down the actual Cost of property in Monetary Terms, where it becomes viable for Actual Buyers. And the INVESTOR gets in Rupee terms what he had paid for the property.
Or there may be other solution to Situation.
Government implements "Housing for All" Scheme with full guns blazing. This can also bring down the property to the affordable level.
