Real estate a major asset in India: Marc Faber

Real estate is a major asset in India and it will be a "big scene" in the next 20-30 years, says investment guru Marc Faber.

"A major asset class will be real estate in India... real estate will be a big scene...," Faber said addressing the first of the
'The Market Visionary Series' organised by Financial Technologies and Prabhudas Lilladher.

With a vast young population and majority of population living in rural areas, there will be huge demand for real estate in cities, beaches and mountains where people would like to own a house, he said.

"In the next 20-30 years, prices will be much higher than (it is) today," he said. Though real estate is like stock markets, in terms unpredictability, Faber said the impact of any possible bubble will be less on real estate than on financial markets.

"In Asia, there will be less bubble," he said, adding real estate would grow at a lesser rate than real GDP growth.
Besides real estate, medical and tourism are other major growth sectors in India as the markets for these segments are far from saturated.

Betting on emerging economies, Faber said China and India have emerged as engines of world economic growth.

"India's growth prospects are better in the long run than (that of) US" and corporate earnings are going to be better in India, he said. India is also going to be the hub of all research and development in future as the country is gaining expertise in this sector.