Saturday, July 19, 2008

Pune builders touting townships.

CNN -IBN has become a builders mouthpiece for touting the Pune builders. All project costs seem to be bogus running into thousands of crores of rupees. Where is the money going to come from for all these mega projects. One success in magarpatta city and all these marketing fellows are trying to ape it.Even in Magarpatta the apt building quality is average whereas the commercial buildings are above par. The reason for the difference is simple. The commercial buildings were constructed by reputed construction firms like JMC/Vascon whereas the apt buildings were constructed by builders who had proximity to the politicians. Lalit Kumar says "how long will be buyer wait ?" Mr Kumar he will wait till the cows come home and he is not going to get carried away by projects built in the boonies. Pune is not a metro city like Mumbai/Chennai therefore it lacks funds for development. Already has a load shedding problem which is getting acute.

11 comments:

The Boss said...

It is funny how everyone is jumping on the load shedding news in Pune. Just shows the desperation with which bears will hold onto any hope of a correction. To the uninitiated, Pune didn't have regular load shedding for last couple of years due to unique private-public partnership. This year, when government undertook the routine maintenance of power plants, it didn't account for poor monsoon and the resulting eletricity shortage aggravated by pumps working overtime on farms. This has led to temporary load shedding in Pune. Linking this new somehow to real estate prices is plain illogical. Please read more about hype surrounding real estate crash dreams at:

http://rightadvice4u.blogspot.com

Anonymous said...

Have some sleep .. boss.

I know its tiring to run after every blog on the net and trying voraciously to negate the impact. Pathetic.. yuk.

Anonymous said...

anonymous above me , i agree with you. sick of seeing his comments on every blog. yukkk . if he doesnt have anything to gain from this why is he doing it. simple hes paid blogger.

Anonymous said...

One of the argument every builder in almost all towns have is about shortage of land. Have they ever flown above India and seen how much land we have. Everyone seems to think given India's population, we are going to run out of land for housing. In reality, India has so far developed very small percentage of land for housing. Recently I was flying from Mumbai to Delhi, and you can be amazed to see that more than 50% of space is just open, no agriculture nothing. How the heck then are we going to run out of land supply? The current prices are unreal compared to average Indian Household Income.

Anonymous said...

Anyone knows which Urban cities will have significant Infrastructure improvement in coming decade? Came across this article recently.

The second report, “India Infrastructure: Playing Catch-Up,” is 200 pages and covers a similar, but not identical, list of five major infrastructure sectors: electric power, roads, ports and harbors, airports and civil aviation, and railroads. Trusted Sources and Urandaline note that nearly $500 billion is budgeted for infrastructure spending in India’s 2007–2012 five-year plan, almost double the proportion of GDP earmarked in the previous plan.

http://www.commercialpropertynews.com/cpn/content_display/regions/international/e3ia8ca7c8381ec4a0fcef9ae375f6ba156

Anonymous said...


Link for Article

Prashant said...

The correcttion has already started. It will take 3 or more years for it to play itself out. When prices were going up, they never stopped and silenced every critic. Similarly, now that the correction has started, many people will deny it, or say that its over, etc. Alas, just like when it was going up, it will keep going down for a looong time. Eventually, it will silence every critic. These builders will go down, because they would have paid so much for the land and invested a great amount of captial, but there would be no buyers. I expect, some banks to fail too - those who have given loans to these builders as well as to the consumers. Stay tuned!

Vik said...

The issue of concern is inflation, interest rates and the invesment capital which will be needed to suppor the growth in infrastrucure. As inflaton and interest rates rise any arm chair economist will tell you that growth slows leading to stagflation. India is experiencing stagflation now that the good old days of growth are behind us. Trying to hype SEZ in godforaken places is the desparate attempt of builders to sucker the Indian home purchaser. As the cost of developing infrastruture has gone up, the land cost has to come down to compensate for it. The affodablity of loans at these high rates will preven the buyer from making any purchases. If they buy into these hyped SEZ's or townships they will be locking in their money for 5 years and end up paying interest and rent thereby increasing their hospital bills due to high blood pressure.

Anonymous said...

Get a life Boss. You don't know squat about anything and you are just trying to fool people.

I don't know who is paying you how much to write these comments, but I'll whip your arse if I see you in person. I've read yours, realty riser's and Ashish's blogs. You guys are sick mother fuckers.

Anonymous said...

Hello,

The reality is this

Mumbai

Every far off suburb from Dahisar onwards suffers 10 hrs load shedding every day

The traveling can Kill you.

The water can kill you.

so get real....

The prices have to crash and crash big time

All money is being sucked out of the system now.

Earlier the boom rode the low interest thing

Now developers have bought land at rates that they cannot justify

Look at the share prices of all those realty companies which were the toast in Jan 08 Not they are trading at 80% below their peak

Wake up guys this is the begining

We even had news that big builders like Hiranandani had not deposited their employees PF amount. after the article no news in any newspaper on that.

Probaly gave the journos some .... to shut up.

Just like the world over the reality is bringing down the economy.

We are to see the repeat of the US housing crisis in India soon.

Realty Rider said...

Real estate developer Nirmal Lifestyle Ltd plans to build five integrated townships costing about $5 billion (Rs20, 300 crore) in 10 years. The firm, which has developed a township, and residential and retail projects in the city, said three of the townships will be in Mumbai, and one each in Pune and Indore. Each of the projects will include an IT special economic zone, and will have about 20 million sq. ft each. The company is finalizing the land acquisition for these projects. They plan to fund the land acquisition through internal accruals. For each city, they will also look at partners but that will only be on maturity of the project. They also plan to go public in the next 12-18 months. Nirmal is currently developing a 3 million sq. ft shopping mall in Mumbai and a 1,080-room hotel project, jointly with France’s Accor SA. Real estate developers in India have rushed to set up industrial zones and townships in the last few years due to easier investment rules and rising demand for homes and offices.For more view- realtydigest.blogspot.com