Looking at the India real estate especially in metros, one can not help but wonder if it has similarities with the stock market scam of 1992 / Harshad Mehta time.

Because back in 1992 , the stock exchange had no regulation. One could easily drive up a stock price through pure speculation and gossip. Same method employed by real estate people today. A bunch of brokers were in play and spread the notion of 'prices'. Today's date , there are norms placed on stock prince increase in the form of upper and lower circle. But that happened after lacks of people losing their life's earnings and coming on streets. Greed. Harshad Mehta is dead and investors learnt a lesson. But people lost their livelihood in many cases.

Today's Indian real estate is worse than 1992 scam. Because, there exists no standardization of pricing and trace back. No one knows who decides these prices. Any one and every one can say 'bhav badd gaya' and increase in price randomly . There is no way to cross check. 300 to 400% increase in a matter of 3 years ( dot com boom did not cause so much increase in NY stock exchange).

This is an extremely worrisome thing . Because, in case of stock market scam , only few people invested their money ( that too part of the money). But in today's indian real estate , every one seem to be dumping their years worth of earning ( and life) hoping that this will only go up.

If some thing like a 2 BHK costs 50 lacs plus in an economy where government says 600 rupees to feed a family of 5 for a month, there is a serious morbid scam.

5% growth and 2014 election year, probably change of government and people hoping for rise in pay checks for the next 20 years.

People will lose money for sure. That is not the main issue. But isn't this mentality dangerous for the whole economy ?

Prices of commodities rising EVERY SINGLE MONTH. EVERY MONTH. Hope the salary too does till eternity ?
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