India’s real estate market has weathered multiple financial shocks and still continues to rise. But not all investments in the sector are equal.
Wisdom Hatch founder and finfluencer Akshat Shrivastava, in a recent post on X, warned that while the overall market may remain strong, certain types of properties — especially those in rapidly expanding mega townships — could turn into financial pitfalls.
Citing India’s unique demographic and land constraints, Shrivastava argues that demand for real estate remains fundamentally high.
“India has 1/4th land compared to the US. And, our population is 4X that of the US. This creates a factor of 16. Plus we have a growing population which will peak in 2065,” he wrote.
Despite significant economic disruptions, such as demonetization in 2016, the property market has seen unprecedented growth.
“This should have killed the Real Estate market in India. But, our property market is easily up 200-300% since then,” he noted. Even after enduring the global financial crisis of 2008 and the cash shock of demonetization, India’s real estate sector remains resilient.
However, Shrivastava makes it clear that not all property investments will thrive. He points to a concerning trend in India—mega townships where builders can dramatically inflate the floor area ratio (FAR), leading to excessive supply.
“Here almost infinite supply of flats can be added. If the FAR is let’s say 1000%, the builder can bribe and increase the FAR to let’s say 5000% (and build more units) in a confined space,” he cautioned.
The result, according to him, is unsustainable development and deteriorating living conditions. “The shiny building that you see today: in all likelihood, is a dead investment a few years down the line,” Shrivastava warned, adding that the issue is not real estate itself but the unchecked expansion driven by corruption and aggressive marketing.
His advice? Investors should look beyond the surface and be wary of developments where excessive supply can be artificially created. While Indian real estate remains strong, not all bets in the sector will pay off.