There's no real estate bubble here

HOMES ARE 3 TIMES MORE AFFORDABLE TODAY THAN THEY WERE 10 YEARS AGO: HDFC’S MISTRY.

The absence of exotic, complex home loans have helped stave off a sub prime like crisis in India, according to HDFC managing director Keki Mistry.


“There are several reasons why India has been shielded from the sub prime crisis. Indian borrowers are typically debtaverse and cautious, simple plain vanilla home loans are offered and not exotic complex products, the loan-to-value ratios are conservative, the securitisation and structured product market is still in a nascent stage and the central bank has been vigilant and has taken pre-emptive measures to prevent asset bubbles,” said Mr Mistry, in his speech at the Corenet Global Summit this week.

read more