Think Property Always Appreciates? This Real Estate Advisor Says, Think Again

He said India’s strong fundamentals set it apart, but risks still exist. (Representative Image)

For many Indian families, buying property is seen as the ultimate investment, something that will always grow in value. But real estate advisor Rajdeep Chauhan has a word of caution. In a detailed LinkedIn post, he said property prices don’t rise forever and that several major economies have seen painful real estate crashes when fundamentals weakened.

Chauhan began his post with a sharp example: “Your uncle bought a flat in 2007. He’s still waiting to break even.” His message was clear: buying property doesn’t always mean profit, and history proves what happens when people ignore the risks.

Lessons From Japan And The US

Chauhan shared how Japan’s booming property market of the late 1980s ended in one of history’s biggest collapses. “In 1989, Japan’s real estate market was so hot that the land under the Imperial Palace in Tokyo was worth more than all of California,” he wrote on LinkedIn.

“Then it crashed. By 2001, land values had fallen 70 per cent. People who bought property at the peak in 1989 are still underwater. That’s 36 years ago.”

He also mentioned the 2008 US housing crisis, where property prices fell 19 percent between 2007 and 2009. “Over 2.8 million foreclosures in 2009 alone,” he said. “Homeowners waited five to seven years just to recover their equity.”

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Why India Is Different, For Now

Despite his warnings, Chauhan said India currently has strong fundamentals backing its real estate growth. “India checks all those boxes,” he explained.

“GDP grew 7.8 per cent in Q1 2025. We’re adding 100 million-plus people to urban spaces. Our office supply-to-demand ratio is 0.49-for every 2 sq ft of demand, we build 1.”

He noted that as long as factors like steady GDP growth, controlled speculation, and balanced supply-demand continue, the Indian property market will stay strong.

A Word Of Caution

Chauhan ended his post on a reflective note. “Ask China how it feels with 26 per cent office vacancy. Ask Japan how 1990 went. Ask Americans who bought in 2007,” he wrote. “When fundamentals align, you make money. When they don’t, you become a cautionary tale at someone else’s wedding.”