Real Estate Bubble ?- Spill the tea

I have been looking at Flat prices in Mangalore, it seems like they are very expensive.Almost the price of a flat in a tier 1 town in the USA ( exclusion New York, Los Angeles). An example, a person bought a 3 bkh for 80 lakhs (cash no EMI).The owner has now rented it for rupees 18,500 per month. Just the principal will take 36 years to recover the cost. This building has a lot of apartment this by itself will lower the value over the years. Additionally, major repairs would be needed in 35 years. Who are people buying these flats? NRI, Doctors.... Won't they recieve better value in a fixed deposit account. Why are people saying it is mostly politicians money. How exactly do politicians make large money and invest with builders. Can someone spill the tea, without naming names. I am not understanding the mechanics of these transactions.