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Opinion
Andy Mukherjee

India’s Subprime Mortgage Mania Can Quickly Turn to Panic

Investors have seen similar stories play out before.

Hundreds of millions of Indians crave a roof over their head. But they need a secure job first.

Hundreds of millions of Indians crave a roof over their head. But they need a secure job first.

Photographer: Dhiraj Singh/Bloomberg

Affordable housing in India is a corner of finance that’s expanding almost 40 percent a year, and even more for some hyperactive lenders. The borrowers are subprime, their collateral is of dubious value, financiers’ cost of capital is rising, and yet the government is whipping up a home-buying frenzy.

Investors beware. You’ve seen similar stories play out before; this one, too, isn’t likely to end well.