Sometimes when people build too much without thinking, things go wrong. That’s what happened in China with a company called Evergrande. It borrowed a huge amount of money (about $300 billion!) and quickly became the biggest builder in the country. For a while, everything looked great — the boss even became the richest man in Asia.
But here’s the problem: Evergrande and other builders kept making more and more houses, even when people didn’t need them. China ended up with empty apartments — enough to house three times its population! Eventually, the company couldn’t pay back its loans. The housing market crashed, prices fell, and people lost jobs. China’s economy slowed down too.
India should pay attention. Right now, real estate (houses and buildings) is a smaller part of India’s economy. But already, big cities have over a million unsold homes, many of them super expensive. New towers are being built, but lots of apartments stay dark at night because nobody lives there.
If India keeps building homes that people can’t afford, the same kind of “bubble” could burst here too. And when bubbles burst, it hurts everyone — families, workers, and the economy.
Lesson: Build what people actually need, not just shiny empty towers.
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Views expressed above are the author’s own.
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