Amid house rents skyrocketing in metropolitan cities like Bengaluru and Mumbai, growth in India's real estate sector is still a story to be unfolded.
Calling the sudden spike in house rents in India a short-term phenomenon, Zerodha's co-founder
If the stark mismatch between the trend of buying and renting houses needed to reach equilibrium, he would bet on the former.
It looks like a short-term phenomenon; as long as you can rent at 3% and housing loan rates are over 8%, this won't work.
"My bet is still on the former," he tweeted on Thursday. If I had to bet on house prices going down vs. rent going up to reach equilibrium
The main reason behind the rising house rents in India is the large imbalance in demand and supply for living spaces post-COVID.
The existing supply of living spaces in the metro cities has been insufficient to match the sudden surge in demand for rented houses after the pandemic.