It doesn't work that well in practice. While real estate is overinflated for buying, rental yields reflect the market. They are under 2-4% of the property value in most places.
India is also expanding vertically in cities so new housing is often built in different area and older infrastructure is not maintained in the long run.
A significant portion of real estate is built on under the table money. You often pay 30-50% of the value in black money.
So, real estate is a very illiquid investment unless commercial in India.
There are also cultural reasons for artificially inflating real estate and Indian property developers are under huge loans similar to China. It won't be sustainable.
India is also expanding vertically in cities so new housing is often built in different area and older infrastructure is not maintained in the long run.
A significant portion of real estate is built on under the table money. You often pay 30-50% of the value in black money.
So, real estate is a very illiquid investment unless commercial in India.
There are also cultural reasons for artificially inflating real estate and Indian property developers are under huge loans similar to China. It won't be sustainable.