Mumbai’s nearly trillion-dollar real estate market set to see greatest wealth erosion in history

Whichever value one adopts it is clear that the stakes in Mumbai real estate are very high. At a valuation of $800 billion, it is equivalent to 43 percent of India’s total stock market value and 29 percent of GDP.

The total value of all homes in the US is $33.6 trillion. An analysis by Zillow, a real estate database company, estimated that housing value in the US is 160 percent of the country’s GDP. The value of homes in New York alone is equal to the GDP of India.

It’s been on my mind for a while to do an exercise in valuing aggregate property in Mumbai. Given the limitations in India’s data gathering as well as the nature of the real estate business, it is not easy. However, that doesn’t mean an honest attempt can’t be made. For this, I rang up Uday Tharar to help me with a measured assessment. Tharar is an economist who keeps a hawkish eye on emerging markets.

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