Saturday, July 18, 2009

Registration of Power of Attorney to become compulsory

Hindu reports.

The government of Tamil Nadu has proposed amendments to the Registration Act to prevent fraudulent transactions, evasion of taxes and stamp duty , writes R.L.Narayanan

Photo: M. Srinath

Changes underway: Rules relating to registration of Power of Attorney will be changed.

Recently, the Government of Tamil Nadu has proposed that the rules relating to registration of Power of Attorney will be changed and the registration of instruments of power of attorney will be made compulsory.

Further, it is proposed that the registration of these instruments shall be made only in the office of the Registrar of Assurances concerned having jurisdiction in respect of the property dealt with under the Power of Attorney is situated. Necessary a mendments to the Registration Act, 1908, are likely to be made shortly and date of notification for implementation announced.

The immediate concern for the proposed amendment is the large-scale prevalence of a system known as “Power of Attorney Sales”.

The Supreme Court has considered this terminology and the practice covered by the term in a case pending before it.
Gained acceptance

Broadly speaking, Power of Attorney Sales is the practice of registering Sale Agreement, Power of Attorney with or without Will instead of one Sale Deed or other deed of conveyance on payment of full sale consideration.

The practice has also been to register only one of the three documents mentioned above. This practice has gained acceptance in the market and also before various authorities.

It was noticed that where restrictions such as compulsory permission from the Authority concerned and where such permission was granted on the basis of payments to be made were imposed on transfer of flats, a hybrid system with a Power of Attorney Sale was effected by the allottee / holder of the Flat to avoid the procedures and fees to be paid.

Full article here


Anonymous said...


Prices are going up, now in all fairness you must advise the buyers accordingly.

Anonymous said...

Anon above:
Do not get carried away with the slight price change. If you cannot resist, go ahead and buy.

But the market will correct by 50-60% in coming years. Declines in RE are not like stock market. It takes years for people to come out of denial mode.

Why would someone want to buy any house if that can be rented for 25% of the mortgage. I would suggest if someone wants to invest 50 lacs, that amount will become 1 crore in 8 years in any bank and the person can rent the same place at very low prices. The house that is worth 50 lacs today will not be worth 1 crore in 8 years. The price will stay same for a decade or go down to say 30 lacs and then go up again starting 2018 or so.

Choice is yours.

Anonymous said...

What we are seeing in India is not a housing bubble, but a Maha-bubble "Mother of all Bubbles" and people are trying to get back into the market thinking prices will go up again.

Pigs will get slaughtered.

Anonymous said...

People who are thinking recession is causing the prices to fall and as soon as the economy recovers, prices will go up again.

Please think back and see what caused the recession??? Unless housing comes back to sensible levels, recession would always be there and would become a depression. So, housing has to decline by at least 50% all over the world for economy to pick up again.

Anonymous said...

Today again received a mail from Magicbricks.

What better place to put your money than your own home.

Talk to us today about buying a home.

If you’ve been dreaming about buying a home for your family, we can help put your name on the door.
Talk to us. We are here to listen, and you can use our expertise to take the right decision. Count on us for guidance on legal and technical matters, property search and home loans.

We’ve assisted over 3.3 million families across the country buy their dream homes. We’ll be glad to be with you right through.

When rate were really increasing, we never received this kind of mail.

This is a begger request.

Anonymous said...

"Please think back and see what caused the recession??? "

When I think back I see the recession was caused by financial crisis. But what caused financial crisis, the massive lending that fuelled the housing bubble. So, the major cause for this crisis seems to be housing mania.

Shubh Chintak

Anonymous said...

In India the bubble was fueled by lending by banks and black money speculation. All land transactions have huge black money component as everyone knows. Unless that is stemmed we won't see much of declines from these levels.

Anonymous said...



Those who are planning to buy Gaur Grandeur / Amrapali group projects beaware of the possession date. I visited the construction site of both these builders last week.
Gaur claims to give the posession in 17 months while the building is yet to see its foundation !!

My experience shows that in no way the project can be completed in less than 28 months.

Also when I was with Amrapali, the fellow asked me to write the cheque to a diferent name altogether. I told the guy that the cheque has to be in the name of Amrapali. On probing further I came to know that the money shall be transferred to a different project of theirs.

Those falling in for Sector-117 / 119 Noida stay cautious. You might not get the posession even after 4 years.

Anonymous said...

Excess liquidity will drive the prices of RE further up. All currency will loose its value thanks to various govt monetary policies to tackel recession.

Now we can take a call to sit with money or invest. Future looks very grim for people who are sitting with money.

Anonymous said...

well said Anon 7:35, you have hit the bulls eye.

Anonymous said...

Another layoff in my company just when things seem to have stabilized. Its MNC doing pretty well even during recession. but like any other public company, they want more profit. The number of people affected in my group is very high. Its about 50%. It included some extraordinary talents. And some biggies too. (i mean senior profiles)
Nothing is safe. I cant think of committing to heavy EMI for 20 years.

Anonymous said...

keep bull shiting but the market will still go up!! :-)

Venkateswaran K Iyer said...

Amarpali Ghaziabad delivered in 2 years

Anonymous said...

Since we all have liberty to our opinions, with due respect to those who think prices will go up now and buying is good:::

I think the world is in the process of brewing another financial disaster and no Govt. is trying to stop it due to political powers and might they are addicted to. If this is not corrected in time, there could be a total collapse and it would take many-many years for us to come out of it.

Anonymous said...


Builders honored their committment in the past as there were enough buyers and they wanted to finish projects fast and make their money. Now they themselves are not getting enough money from lenders to complete their projects and buyers have reduced by 70%.

I've seen the same situation in US. Builders committed and then took for ever to complete.

Maybe buyers should put a clause for delivery and charge the builder Rs.10,000 per day as late delivery charge. Trust me, no builder will sign it as they know they can never honor what they are saying. If they truly believe they will complete it in time, have them sign the delivery clause.

Anonymous said...

The Joblessness Threat

“These raw figures on job losses, bad as they are, actually understate the weakness in world labor markets. If you include partially employed workers and discouraged workers who left the US labor force, for example, the unemployment rate is already 16.5 per cent. Monetary and fiscal stimulus in most countries has done little to slow down the rate of job losses. As a result, total labor income – the product of jobs times hours worked times average hourly wages – has fallen dramatically

A sharp contraction in jobs and labour income has many negative consequences on both the economy and financial markets. First, falling labour income implies falling consumption for households, which have already been hard hit by a massive loss of wealth (as the value of equities and homes has fallen) and a sharp rise in their debt ratios. With consumption accounting for 70 per cent of US GDP in the US, and a similarly high percent in other advanced economies, this implies that the recession will last longer, and that economic recovery next year will be anemic (less than 1 per cent growth in the US and even lower growth rates in Europe and Japan)”.

The irrational exuberance that drove a three-month bear-market rally in the spring is now giving way to a sober realisation among investors that the global recession will not be over until year end, that the recovery will be weak and well below trend, and that the risks of a double-dip W-shaped recession are rising”.

Anonymous said...

Flats and residential properties in India are on a long term structural decline.

Do not ever think of buying a flat or house for the next one or two years.

Cos after 2-3 years, the recession or its after effects will be still around and by that time the general population will not have money.

So, if you have money keep it safe cos you might need it a few years from now to buy houses or whatever.

If you put money in real estate now, watch it decrease in value and be ready to make losses over the next two years. RE in india will lose its value big time and a decline of around 60% from present levels is absolute certainty.

Both Equitymaster and the Trivandrum-based exclusive thinktank CR&PA have downgraded the future prospects of properties in India to junk status. Infact equitmaster CEO ajit dayal has gone on record saying housing is going to fall big time,no dount about that.

SK George

Anonymous said...

Come on George!!
Haven't you learned in the past 4-5 years from the Indian economy that stock prices and housing prices never fall. They always go up. Let people who believe in this theory keep buying houses.

And in the meantime we'll wait and watch patiently for maybe 2-3 years till the whole thing crumbles like a cookie.

Anonymous said...

My dear readers:

Singh is king, Singh is King is all what we have been saying BUT reality is Cash is King. Keep your cash for so many sweet deals you will be seeing in the coming years.

George above is right. The liquidity will vanish from the market, interest rates would be high and flats would be selling for 1/3rd the price as of today. At that time if you have cash, you'll be able to stack up a few houses.

Same thing is happing in US now. Someone in Detroit bought 200 houses. Google for this news. He bought them at 10-20K dollars each which is almost 1/10th of what these houses were selling for.

Anonymous said...

Price rise is realtor strategy, not indication of market lift: report
Font Size -A +A
Shalini Nair
Posted: Jul 21, 2009 at 0104 hrs IST
Mumbai After dithering for a year, Benzon Rodricks bought a one-bedroom apartment at Borivli last week. Rodricks, who works with a consumer durables company, says he had been “deferring the decision for almost a year, waiting for prices to get corrected further”.
A visit to project sites convinced him that waiting further wouldn’t be wise. “Developers quoting Rs 4,500 per sq ft over a month ago are now asking for Rs 4,800 psf. This convinced me that prices will not go down anymore.”

Developers’ official tagline about the hike in rates is that the buyers are returning to the market amid renewed optimism. And this has spurred many like Rodricks, who had been anticipating a further fall in prices, to buy their dream home, fearing prices will start spiralling up again.

At a time when the global economy is stilling wobbling, realty watchers say developers are trying to scare prospective buyers into taking the plunge.

A July 2009 report by HDFC Securities notes that over the last three months, there has been an average price rise of 3 to 8 per cent in Mumbai. “We believe this increase, by a few hundred rupees per sq ft, is being used as a tool to sway potential buyers to close deals,” it states. It notes that banks providing home loans have reported a significant increase in home purchases and approvals in disbursements have been peaked in the central suburbs.

Between May and July, Kalpataru has increased rates for its projects in Thane, Ghatkopar and Kandivli in the range of 5 to 8 per cent, Nahar for its Chandivli project by 7 per cent, RNA Corp for its Kandivli project by 10 per cent. A few like HDIL and Lodha, which had launched projects at relatively low rates, have hiked prices now, HDIL by 23 per cent at its Kurla and Versova projects and Lodha by 20 per cent at Dombivli.

Realty experts say the immediate price hike after the general elections was an attempt to cash in on the liquidity generated from the stock market surge. It also helped bait several fencesitters who had been putting off their decision to buy a house.

“A client who had short-listed a project in Andheri, but never finalised the deal, immediately bought the flat a couple of weeks ago when the developer told him that rates would be increased by Rs 150 per sq ft the following week,” said Sandeep Sadh, CEO of the portal Mumbai Property Exchange.

He added that the anticipation of a realty market-friendly budget had led to the build-up of optimism. “During this time, builders saw an increase in transactions and are now laughing all the way to the bank,” he said.

Anonymous said...

Mumbai tops in property investment in India, India's No.1 property portal from Consim Info (formerly known as BharatMatrimony Group) today released their online survey report, which showcases the 'Trend in residential space across top cities in the current scenario'. The survey received over 3,000 respondents and most of them showed interested in buying residential property now.

Email Print Download PDF Add to Google RSS twitter Chennai, Tamil Nadu, IND, 2009-07-20 16:52:43 ( Downloads
No files attached, India’s No.1 property portal from Consim Info (formerly known as BharatMatrimony Group) today released their online survey report, which showcases the ‘Trend in residential space across top cities in the current scenario’. The survey received over 3,000 respondents and most of them showed interested in buying residential property now.

The analysis was to study customer views on the current market condition & if they are keen on buying residential property. Respondents from Metros and other cities, which include Pune, Thane, Coimbatore, Ahmedabad, Vadodara and many more inquired details about purchasing a property. More over, people aspired to services like water, security, connectivity by public transport, parking space over other lifestyle features that include gym, indoor game facilities, and swimming pool.

Commenting on the survey findings, Murugavel Janakiraman Founder & CEO Consim Info remarked, “Market sentiments are reviving and people are willing to invest. This could be owing to a stable government and the price correction factor. Based on our survey, more than 60% of the customers are looking at buying residential property in the next 6 months. They also are expecting a lowering of interest rates on home loans”.

Some key findings derived from the survey are:

· Mumbai is still the most preferred destination to invest in property, while Chennai takes the first place for property investments in South, over Bangalore.

· 60 % of the respondents feel that the interest rates for home loan will fall further in the coming months.

· Apart from metros, Tier 2 cities like Patna, Nasik, Trichy & Madurai, seem to be on the rise for property investments.

· 40 % of the respondents show interest on property with a square feet ranging from 500 to 1000 sq ft, which is inclined towards ‘Affordable Homes’.

· 50 % are looking for properties for their personal use rather than just buying property for investment. constantly studies its customer’s needs on the real estate market through regular surveys, property fairs and events.

- End -

Anonymous said...

FDI lock-in norm change may cheer local realty cos

Anonymous said...

Go and grab your dream home
Huge fall in realty prices

(Vivek Shukla) Contact Reporter E-MAIL This Story PRINT This Story

Publication Date 20/7/2009 11:25:29 AM(IST)

New Delh: A house for Mr Surinder Sharma will now cost less with markets correcting approximately 10-30 per cent in Delhi NCR, Mumbai, Bangalore and Chennai. The next three months, say real estate watchers, are the best time to close a deal.
Where property buying goes, the buzz is that it’s no longer the worst of times. For instance, real estate worth Rs 50 lakh six months ago, will now cost 40 lakh. And with interest rates down to 8 per cent from 13-14 per cent, what the consumer shells out effectively is Rs 32 lakh. In other words, this is the best time to buy.

Indirapuram based finance professional Rakesh Mishra started his search for a house four months ago. He zeroed in on a project which was launched last month. It’s at a prime location, and comes for a good price. “With the Navratra discount, the house cost me Rs 26 lakh,” he says.

Go and grab your dream home

Deals like this are bringing realty back to life again. “This is the right time to do your research and consider buying a house at the right and real price. Developers are more than willing to give in to the demands of a serious buyer,” Dr. Devender Gupta CMD, Century 21 India. Many who aren’t buying are window shopping. Average buyer interest over the last two months has risen to 30-40 per cent. Experts anticipate an upward trend in the market between May and July. With prices rationalising in many pockets across the country, the dream house is looking affordable for a significant corpus of aspiring buyers. Those who have identified a suitable property and have the financial means to take the plunge should do so now. A deferred decision, say experts, might mean passing over the best bargains.

Developers are wooing customers like never before. “The buyers, chiefly end users are back into the market. There are realistic bookings happening today,” said Alimuddin Rafi Ahmad, managing director of prestigious ILD group. PK Jain,Executive Vice President,PNB housing finance Ltd agrees. “Developers this season are seeing a lot of inquiries, the phones have started to ring again and that is very encouraging. With interest rates dropping enough to take a home loan and prices correcting by almost 10-30 per cent, it’s a good time to get back to the market.”
Even top developers DLF and Unitech who focus on luxury apartments are now coming up with affordable housing projects. Rajeev Rai,vice president, Assotech group, says that the prices have corrected by almost 30 per cent. Developers are tailoring products according to customer needs across all segments, instead of the earlier stress on high-end housing.

Anonymous said...

Moreover, as Sunil Jindal,director, SVP group points out, “Besides the interest rates and prices moving downwards, consumer fatigue has also set in. How long will a buyer wait? He may as well come forward and buy.” The market is seeing a new movement because of the pent-up demand from end users — people who typically plan to buy a property for their children and see a future in real estate, says an executive of Cushman & Wakefield. Those with a budget of Rs 20-30 lakh should seal the deal as any further correction is unlikely, points out Jindal.
According to Chaitanya Manohar, director & COO, L.J. Hooker India, Bangalore, “We have seen increased level of activity (enquiries) across Bangalore specifically in projects that are close to completion (possession in 6-8 months). There has been tremendous interest especially in the Rs 20-45 lakh range from first-time homebuyers.” Buyers today have plenty of choice; there are properties under construction for which possession is due in the next three to nine months. “He can expect reasonable returns as the market would be up and moving when he finally gets his house,” says Anil Makhijani of Mak Realtors of South Delhi.

So does that make it a bad time to sell? Well, perhaps. Rizwan, a senior manager with a job portal, recently sold his apartment in Faridabad for the same price at which he had bought it. “I had to dispose of the Faridabad house to take possession of my house in Indirapuram. The house cost me Rs 1,690 per sq ft two years ago. I did incur a loss in terms of the EMI and the foreclosure charges I had to pay the bank,” he said.The market is not favouring the seller, but he can use it to his advantage. He may be able to sell his house to move to a better location or upgrade from a two-bedroom house to a three-bedroom at the same price. A person who bought property more than 3-4 years ago may make a profit if he sells now.

Anonymous said...

A must read!! :-)

Anonymous said...

Venkateswaran K Iyer said...

@anon 2.26PM:

I agree. We need a builder's regulator to sort out these chronic problems.

Congress govt is unlikely to deliver on this need though - their party traditionally thrives on RE generated black money

@SK George:

I agree that using up all your cash and cash flow (EMI) is a bad idea. Putting money in RE now should be for real long term only - say 15 years minimum. In any case 2-3 year RE investment is flipping - only to be done in rare hyper-bull markets which ocurred only in 2004-7, (also in 1982, 1986,1994). Flipping cannot be done in this market. Speculators buying now are making a mistake.

Anonymous said...

Price rise OR Sales Trick?

Price hike is nothing but another trick to fool panic potential buyers. After having economic positive news, RE punters started spreading the price rise news. Long waited buyers are
thinking that now recession is stabilizing so market will again start it’s bull run. But RE correction is on its way so patience is the only winning key.

Now who is buying?
Even to pay owner’s equity, buyer must have saved since last 5 years. Last 4 years market was good & they were able to accumulate the down payment amount. Now in today’s market condition, it will take substantial amount of time to accumulate the same amount. This assures that there will be much bigger slump in forthcoming years.

Sellers who were waiting for market stabilization are now advertising properties, means more & more supply is coming in market. [Refer the increase in online ads.]

In last 2 quarters we heard news about companies; now see the effect on household. The loan default rates are rising; unemployment is going up, credit card default rates are going up.

Indian State-Run Banks’ Bad Loans Rose 9.9% in Year to March

“India’s state-run banks reported a 9.9 percent rise in bad loans for the year ended March 31”.

Citi sees credit deterioration in India in Q2

"Card net credit loss rate increased to 6.0 cent from 3.4 per cent in the prior- year period. Credit deterioration was particularly apparent in the card portfolios in India and Korea," the firm said”.
So guys let it fall then only pick up, minimum 50% price cut is guarantee.


Anonymous said...

If a builder’s marketing man tells you there are just two flats left in his project, and if you come back tomorrow that too would have gone, don’t believe him. The truth probably is that he has sold just two flats so far. The marketing chap may use another ruse: the price is Rs 3,300 per sq. ft, but if you don’t put your cheque down today, tomorrow prices will go up to Rs 3,500 per sq. ft. Again don’t believe him.

As capital values of property decline and developers go on a desperate binge to launch new projects, those sitting on the sidelines might once again consider investing in a product that seems more affordable now. So is it a good time to invest in your first home, or maybe pick up something that could see some appreciation in days to come?

The answer: if you can wait, please do. Despite all the hype by builders that the property market has bottomed out, we actually are still to see the bottom of the trough. Crisil Research’s recent 10-city survey predicts that residential property prices are likely to fall another 10 per cent by this October, and stability in prices and demand will only emerge in the first quarter of next year. This is backed by other agencies too. Builders such as Dharmesh Jain of Mumbai-based Nirmal Group put on a brave face and say there will be no more price decreases. But this must be discounted as marketing hype. Sandeep Sadh, CEO of the portal Mumbai Property Exchange, advises a wait-and-watch line as he feels the real reduction is yet to come. “Unless builders offer a substantial discount, the market will stagnate till October,” says Sadh.

So when builders go to town again around Dussehra with their freebies and new offers, prices may be lower and it may be a good time to look around and make a deal. Again, the same flat you liked may come cheaper through a broker/investor who booked it earlier rather than through the builder. So look for bargains. For smaller metros such as Hyderabad and cities such as Kanpur and Jaipur that saw crazy appreciation of rates of 200 per cent or more in the 2006-08 period, it may be judicious to wait longer as these markets are today choked with an exceptionally large glut, and are likely to see huge, distress sales by developers.

Potential property investors must also be warned against the slew of new project launches that are being announced at attractive rates, 15-20 per cent below the prevailing market. The lollipop in these offers is that the booking amount asked for is just Rs 2-3 lakh for a Rs 25-50 lakh flat. The danger is that these projects that are yet to start are unlikely to be completed in the promised 30 months as thousands of customers in Gurgaon and Bangalore have discovered. The chances are your booking amount will be used to complete another project that is stuck for funds or clear an old debt of the builder. And your project may remain a flat football field for the next two years. A good example is DLF’s maiden Bangalore project Western Heights. The company launched the project in May this year, but the Bangalore municipal corporation later came out with a public notice claiming DLF was selling flats illegally, and it had no clearances for its advertised 18-storey apartments.

Builders tend to hike prices as a project nears completion, but buying a home in a project that is three-to-six months from completion is a better bet than being stuck for years paying EMI for a home that is literally a mirage in the sky.

Unless it is need-based, investing in commercial or retail property is a no-no considering that even in the long-term — Crisil says weak demand and a supply glut will continue in this sector for the next two years — there is unlikely to be any appreciation in capital values, and lease rentals continue to fall.

Anonymous said...

The most enduring media image of the fall of the rich emirate of Dubai is the rows upon rows of cars abandoned at the airport by fleeing expatriate employees who had lost their jobs and had no money to settle their dues.

But Dubai, used to pomp and glitter, does not like to admit it is facing a meltdown. How can one explain that Nakheel, one of the emirate’s largest realty developers, spent $20 million in fireworks and pageantry for the opening of its $1.5 billion resort Atlantis in December last; and then sacked 500 employees a few days later because it could not pay their salaries?

Among the worst hit in Dubai’s deceleration that started around October 2008 has been the realty industry. Investors from West Asia, the Far East, the US and India flooded the booming economy which they thought was secure because of the never ending rise of oil prices. A construction boom that kicked off about a decade ago became a frenetic tide by the first quarter of 2008. By the end of the year, about 42 million sq. ft of commercial construction was in the pipeline — more than any other city in the world; and prices had shot up 40-45 per cent in just the first quarter of the year.

Post-Lehman Brothers fall, meltdown began to hurt, and Dubai was in the centre of the mess. Oil prices tanked, and the easy liquidity that financed these real estate projects evaporated. Amlak, the largest home financier in the UAE, announced it was suspending new loans. The first quarter of 2009 saw residential property prices plummet 40 per cent and unfinished skyscrapers dotted the skyline.

By the first quarter of 2009, prices had fallen to 2007 levels. At the Dubai International Financial Center (DIFC) prices crashed to Dirham 2,000-2,300 (Rs 26,680-30,700) per sq. ft from the peak July 2008 levels of Dirham 4,500 (Rs 60,000). The Jumeirah Lake Towers (JLT), a clutch of 77 upscale residential and commercial towers, saw prices fall to Dirham 700 per sq. ft from Dirham 1,700 (Rs 22,600) — a decline of over 60 per cent. In the posh Jumeirah Palms, capital value of property declined to Dirham 800-900 per sq. ft from the peak of Dirham 1,800 per sq. ft.

Dubai realtors also said the promise of a three-year visa along with a property purchase in Dubai, brought in thousands of foreign investors keen on setting up business in the Emirates. However, this proved to be a chimera and developers could not provide the visas, triggering a flight of foreign money.

Dubai-India Synergy Stumbles
In the boom days, the property markets of India and West Asia — Dubai in particular — saw a lot of osmosis. Indians living in Dubai, investors from India and Indians in other markets made a beeline for picking up a piece of the action. Among the Indian developers that attempted to cash in on the investor money flowing in was the Niranjan Hiranandani-promoted Hircon International that launched in true Dubai style a 90-storey tower — the 23 Marina — in 2007. Other Indian developers in the Dubai market included HDIL’s subsidiary Dheeraj East Coast, Seth Developers, the Mumbai-based Mayfair and Evershine groups and Bangalore’s Sobha Developers.

The investment flow was the other way too. Several Dubai-based developers queued up to invest in India’s property boom. Emaar Properties, Dubai’s leading developer, joined hands with India’s MGF Developments in 2005 to form the joint venture Emaar-MGF Land. The company is a major contractor for the Commonwealth Games construction in Delhi and has launched a slew of residential and hospitality projects.

ETA Star launched its first residential project Jasmine Court in Chennai and claimed it had 5 million sq. ft under development in India. The Nakheel Group announced projects in Bangalore, while another big Dubai player Damac Properties said in 2007 that it planned to invest around $5 billion (Rs 19,700 crore) in India over the next three years.

.......more on the link below

Anonymous said...


At a property show in Pune last month, a throng of house hunters jostled to draw the attention of sales people.
I was there battling the crowd - part house hunter and part curious journalist - and this wasn't what I had geared myself for. On vacation from my job in the U.S., I had envisioned a more subdued affair and few potential buyers. This city, a three hour drive from Mumbai, was badly hit as real estate slumped across India last year.
I have always hoped to buy a house in Pune, the city where I grew up and where my parents still live. The real estate show might offer up some bargains, I thought, perhaps an apartment that might help pay for itself when rented out. Or there might be an interesting story to tell.
Bargains, I soon found, were in short supply. Home prices fell sharply in the first quarter across India but in many parts of the country like Pune they are still much higher than just a few years ago. And although real estate transactions screeched to a halt earlier this year, the housing sector is showing signs of thawing. So, sales have picked up a notch and real estate developers seem to be offering fewer price discounts.
“Pune is a good example of how prices surged in the boom and the role overseas Indians played.”
India's stock market surged after the May election that brought an unexpectedly conclusive victory for the Congress party. Some of that enthusiasm, coupled with a thaw in global credit markets, has made it way to the housing market. As the global economy improves, particularly in the U.S., the nonresident Indians who invested heavily in real estate during the boom years may return – and perhaps once again help push prices upward.
"The NRI market is not a small market. They'll be watching this as well," says the manager of a global hedge fund that invests in India. "My suspicion is investment buyers could be coming in large numbers because they sense there is going to be a turn in the [real estate] market. They are the ones that can move quickly and it could move prices up."
Still, it may take a while for these overseas Indians to fully jump into the fray again. While analysts acknowledge there has been some improvement in the Indian housing market, they aren't calling a bottom and they aren't discounting the possibility of a further drop in prices.
After one sales person at the Pune show threw out a price of 1 crore rupees (about $205,200) for a three-bedroom apartment in a high-end building complex, I knew I wouldn't be buying soon. That was much further than my wallet could stretch, particularly for a house I wouldn't be living in anytime soon.

Anonymous said...

Some pointers on dipping into India's real estate market:
· Real estate in India isn't always organized. It can help to look for well known developers that have a history of completing their transactions and delivering on projects. Tap outside lawyers to examine contracts.
· Be prepared for delays. Developers sometimes complete projects at a later date than promised.
· Real estate transactions in India can sometimes involve so-called "black money" large payments made in cash, that aren't disclosed for tax reasons. But these payments can be hard to trace, and to prove. Paying by checks and through banks is simpler - besides being legal.
· When investing from abroad, don't forget exchange rates. Pick a time when the currency exchange is in your favor.
· Large banks like HDFC and State Bank of India offer housing loans for non resident Indians, although the loan doesn't exceed 85% of the cost of the home.
Specific numbers on real estate trends in India for the last two months are hard to come by. Overall "you have seen some revival of demand from genuine buyers," says Sudhir Nair, head of CRISIL Research. "There are some transactions starting to take place." But Mr. Nair says prices overshot so heavily during the boom that they still need to fall another 10% or so to push volumes of real estate transactions to healthy levels, and that could take till next year. "For investors or NRIs to come back, they have to see a scenario of prices at least staying stable or increasing," he says. "That won't happen till 2010."
Pune is a good example of how prices surged in the boom and the role overseas Indians played. According to data from CRISIL, housing prices in Pune jumped about 96% from 2005 to mid-2008. They dropped 26% between July 2008 and March this year, but are above 2005 levels in most of the city despite that decline.
Over the years, Pune has morphed into a busy hub of software companies and call centers. It has also drawn the real estate investment dollars of overseas Indians who couldn't afford top cities like Mumbai. Prices for the two and three bedroom apartments I saw advertised at the property show last month seemed to range from 3 million rupees to 10 million rupees. My parents bought their two bedroom apartment in this city about 25 years ago for 75,000.
Recent real estate trends in Pune and across India have similarities to the U.S. Data from the U.S. show an improvement in prices and sales but many experts are unsure that the rout in the American housing market is completely done.
Sanjay Verma, executive managing director for South Asia at Cushman & Wakefield says in some individual markets like South Mumbai, where there is a limited supply of residential real estate, prices may have stopped falling. But liquidity may remain a concern for Indian developers, he says, and that may mean it is still early days to be calling for a full revival.
And so for me, the dream house in Pune is on hold – for now.

Anonymous said...


In BLR a new project was recently launched from an average builder. The price quoted was 2 Cr. My friend bargained for 40% discount. They did not agree. Three days after launch he was told 60% of the project is sold out. God knows who is buying ?

Could this be true or they are playing tricks. The location is good neighbourhood in Whitefield.
Initially I was slightly interested, but after hearing 2Cr I fainted. My friend finally gave up.

Given the situation in RE market, this is highly impossible. What do you experts think ?

Anonymous said...

No way, Whitefield has so much supply, whos going to buy for 2 cr. You can get very decent houses there for 50 lacs today that too ready posession.

Anonymous said...

Anony @ 11:36,

I am talking about independent gated homes, not apartments. 2cr is way beyond imagination. Our budget is around 60-70L, which projects are offering around this range in white field ? Can you please name a few projects that you were in contact with recently. Again we want only independent homes. Ready possession is very much a requirement these days.

Anonymous said...

We bought our apartment in 2006 and moved in MId 2008. This was a reasonably igh end apartment with apartment sizes above 1800 sq.foot. Its been more than a year since we moved in and still some work is going on. The builder apparently is a very nice person , not too greedy. But still 50% of my apartments are not sold . so when somebody states they have sold 40% apartments its pure sham. My apartment is in ready to move, is in upscale area in chennai with limited supply. But there are just no buyers. at least in the case of my builder he got the land in 1990s. so he is not under duress. so he completed the buildin. god knows how the rest can complete . so dont ever go for the new ones. nobody has cash and all this price hike is a gimmick. Its similar to the Chit fund scam that we had 10 years back.

Anonymous said...

A person who has brought a house will never write the above post (Anon 4:17).

Pls do not bullshit and give us more specific details

Anonymous said...

dude, why should i not write... i am telling because i bought it. I have no qualms about accepting that the flats are not sold. its the builders responsibility right.. how does it matter to me if i pass on this information. i find it amusing that you are doubting why i am mentioning this?

Can you please elucidate why you find the post implausible.

Anonymous said...

Anon above:

He finds it implausible because he is Bindaas Bhai. He cannot except that owner of a flat is wanting real situation to surface.

But you are right my friend. All this housing mania is coming to an end and the country already has supply till 2025. We don't need to build any more houses for another 10 years. But builders will keep building and adding on to the existing inventory, thereby bringing the prices even lower.

60-70% declines are possible in the coming 2-3 years.n I think people should worry about their jobs and try to save them rather than houses. Getting a monthly paycheck is very important.

Anonymous said...

Anaon 7:43

Please be more specific about the project (area, price expected by the builder etc)so that we know you are not bull shiting. People like you are misleading the forum by arbit bullshit.

Some fools will take you at the face value but some wont. I am a potetial buyer and hence would like to know more about this project.

Anonymous said...

Apartments prices keep falling as per my sources, specially around chembur!

Also recoveries becoming a big problem for builders and bankers! Builders are now absconding and going underground like BB did from this forum.

Jhoote BB ka mu kala :-)

Anonymous said...

Indians ki gaand lagne wali hai.

Anonymous said...

Anon above:
Please use decent language. You can say ass or arse or back of a person but don't say xxx. We Indians are people of honor and don't do or say bad things.

I was just reading an article and unemployment rate in US is rising:
Unemployment rate for Michigan at 15.2%, California 11.6%, Nevada 12.0%, Oregon 12.2%, Ohio 11.1%, North Carolina 11.0%, South Carolina 12.1%, Kentucky 10.9%, Tennessee 10.8%, and Indiana 10.7%.

Anonymous said...

Looks like the unemployment figures above are flase as it is easily 20% in a lot of counties in US.

It is a wait and watch game now. Housing in US is toast big time. The price of houses in US are going back to 1980 levels. They are already at 2000 levels now and dropping everyday.

Anonymous said...

I think the builders and bankers are raping our Mother India and the masses have no clue yet as to what is happening. Wake up my fellow Indians.

Anonymous said...

Anon above:
Please use decent language. You can say ass or arse or back of a person but don't say xxx. We Indians are people of honor and don't do or say bad things.

Hey madarchod fuck off. Chut like you ass hole

Anonymous said...

US is in depression now. Massive layoffs and huge unemployment. And the stock market is full of "Infestors" who are plaguing the whole world. They are on dope and haven't had their lesson yet. They are trying to create another financial mess.

Anna from US

Anonymous said...

Anon @9:19:

Why are you angry at other Anon. And look at the language you are using.

Abeer Bagul said...

Please ignore the comments which use bad words.
Vested interests from the builder industry would like it very much if this blog looses its regular and valued community of readers due to such stupid comments in between.

If a stray dog on the road barks at you, will you bark back?

Shriniwas K said...

Ha Ha Ha, This is getting way too much funny. My father almost got duped in the past week when some of his friends were pushing him (almost forcing) to book a flat in South Pune and were warning him that rates will increase again. If rates will go up now, nobody has money to buy the houses at todays price, who the F will buy when it goes up? I wonder if the Indian market is being setup for a bigger collapse that happened throughout the FY 2008-09. I guess a magnanimous amount of money from US TARP funds (which has crossed US$ 4 trillion of borrowed money) has fueled into Indian (and other) stock markets. This is ridiculous - US and EU borrow money from the trade surpluses of China, SE Asia, India and then they put it back into the more volatile market, trying to manipulate it so that they dont have to pay back equivalent goods and services in return of that loan... they will pay back the surplus fools with the same worthless stock

I am no economist, but this is the height of how stupid people can be in thinking that prices will go up ...

"Fools rush in where angels fear to tread" - Alexander Pope 1709

Anonymous said...

Anon @9:19:

Why are you angry at other Anon. And look at the language you are using.

9:27 PM

Why do you allow selective absuing in that case go for full. Some chuts think that absuing selectively can scare, madarchod if i come to know the guys who are absuing trust me, will pick them from their houses and screw them.

Either absue totally or dont abuse at all.

Maaka chut

Anonymous said...

Apartments prices keep falling as per my sources, specially around chembur!

Also recoveries becoming a big problem for builders and bankers! Builders are now absconding and going underground like BB did from this forum.

Jhoote BB ka mu kala :-)

7:22 PM

Hey maaki lavdee BB ke peeche kyon padaa hi?

Anonymous said...

Shriniwas K said...
Ha Ha Ha, This is getting way too much funny. My father almost got duped in the past week when some of his friends were pushing him (almost forcing) to book a flat in South Pune and were warning him that rates will increase again

Why does your father have so many broker friends? Ask him to change his company. HA HA HA

Priti said...

Vik, request you to kindly moderate the comments, and remove the abusive comments immediately. This is taking away from credibility of the blog. If you like I can also moderate the comments, I am online a lot and can keep watch.

Anonymous said...


Please moderate the comments but be fair, Vik has failed very badly in this aspect.

I remember him requesting BB to stop writing "minimum 50% increase in 3 years" and parallely allowing Vulture to write minimum 50% fall in property prices.

Bulls and bears, we need both for this blog to succeed. If a bull is posting his opinion you will find the bears abusing him and calling him broker and all sorts of name. This blog is slowly becoming redundant unless we all work towards making this blog more meaningful.

You can hardly see, BB, Vulture, Bharat, Observer to name a few. Why has this happened or is it they are around but feeling shy to come out because the prices of properties have gone up contra to their prediction.

I am no fan of BB or Vulture but trust me these two guys really added value to this site although BB has proven right as of date.

Trust people over here get some sense and behave more like a mature person instead of calling people names.


Anonymous said...


You missed a point..
Amrapali Ghaziabad asked for addition 4.5 laks from the flat ownwers while giving the posession.
The reason: They had given the 2 BHK at 13 lakhs.. while the market value at that time was 22 lakhs..

It was only after 1 year of hassle in consumer court that Amrapali gave me posession

This is the worst builder I have ever seen..

Anonymous said...

Hey Avinash dont talk to these madarchods in descent language, they dont understand. Give them good gaalis and that is what they understand. Assholes.

Anonymous said...

These guys have abused our Honurable Prime minister, Fiinance Minister and lot of other Senior people just because they wanted the property prices to fall.

I am waiting for fucking Vik to take this case to the cops and want to see people over here getting fucked and trust me I can do it.

Vik even if you delete the blogs it wont matter because i have the required back up and will screw all the assholes over here who have abused hiding behind the computer.

Jai hind, jai ho!!!

Anonymous said...

Hello all-

If you look at the topic of this blog, it is India's housing bubble. And it is for like minded people who think there is a bubble in RE prices in India.

For people who think there is no bubble or think the prices will not fall, should stay away from this blog.

Why are you all blaming Vik for nothing. He took out his time to take on this important issue. If you want to participate, look at the topic and contribute based on the housing bubble. If you want to contradict the bubble, you may do so at some other blog. As this is only for bloggers who believe the housing prices will fall.

Anonymous said...

Thers no point in the blog if both sides are not presented. We do know there is a bubble, but also want to know the ground reality. This is very important to make informed decisions.

Anonymous said...

Anon above:
This is not a debate that there is a bubble or not. Bubble is there and prices will fall drastically.

The discussion is where they are falling and how soon they will fall. If they are not falling, what are the reasons that interested parties are keeping the market propped up. What other side are you talking, I don't understand.

Anonymous said...

I dont see any recent posts with hard facts about rates where prices have fallen. anon above, if you have recent data, could you please post the rates going on in projcets you checked.

just talks without figures isnt going to help anyone.

Venkateswaran K Iyer said...

@anon 2.10

Amarpali had lots of properties in Ghaziabad. A friend bought a 1400 sf flat at around 30 Lakhs.
Was delivered well before time. Maybe there are others like you who were cheated.

In any case Ghaziabad is a concrete jungle now. Endless supply. I dont see how rent will stay up - it is bound to fall soon.

Builders by definition are cheats. There is no reputabe/reputaion-less in this - they are all equally bad regardless of size.

@abusive language: Please refrain.

@Moderators, please delete as soon as possible

Of course we should have both sides of the argument here - some feel there is a bubble, some feel otherwise, some are status quo-ists, all should be welcome here as long as they maintain some decency in language.

One way to maintain decency may be to disable anonymous posts. I used to post anonymously but with my name at the bottom, for the convenience, because posting with google id required me to sign in each time, which was laborious. Now it keeps me signed in, making comments with my name easy.

If people want to comment, they can take the trouble of registering with google and having their name on every post

Venkat ND

Anonymous said...

Anon 12:25

You have a great sense of humor and this site needs it. Keep up the good work.

Anonymous said...

Anon @5:51

I'm not sure what your point is. If someone has data they would provide. This is just a blog to express opinions. All these are just opinions and it is totally upto you to make an inference from it.

Do not make decisions based on opinions. Do your own homework before you get in the market. Use your own judgement and then stick to your decisions.

Anonymous said...


Vik started this blog after getting inspired by the US housing bubble blog. The link is:

This blog is for people who believe there is a bubble as the name of the blog says. Check out the US blog for your reference. You don't decide what goes on this blog. If you want to have a debate if there is a bubble, then open your own blog. It is established that there is a bubble and like minded people express their opinions about the extent of bubble.

I hope you understand.

Anonymous said...

We are looking for good, genuine opinions and not thrash and crap. We expect people to be more honest and not to lie just for the sake of proving a point.

Please look at the following anon time:8:47, 4:17, 7:22 these guys are talking nothing but crap.

Talk crap and spoil this blog.

Anonymous said...

You cant walk on ther road nude because you have a large dick. We need to be more responsible when we are addressing a large audience. Vik has started this blog to mislead or give right direction?

When you guys think of bashing the bulls be ready to get back with interest.

Shame on you guys and also remember that you cannot say that this blog is for only bears. This blog is on public domain and people need to take informed decesion.

Anonymous said...

Anon above:
Vik started this blog to get opinions of other people who are housing bears and think that the housing is in a bubble.

It is misleading or right direction, only time will tell. I can tell you that what builders and other realtors are doing is not just misleading but a crime against naiive people.

Anonymous said...

I am from Bangalore. Here is my observation. Rate has come down by about 15% to 25%. ( Which is nothing compared to the 500% gain during the boom). There is plenty of supply. People buying despite the recession. Many think they may not get an opprtunity again. (Must be from IT industry). But at the same time seller is finding it very difficult.

Anonymous said...

i am the same as above (9:49 )
personally i feel another 10 to 15% correction would look very attractive. I doubt that happening. So i might buy at the current levels. To be frank i am very happy living in a rented home. The rent is very cheap and the owner is gem. But every tom dick and harry has a own house here in Bangalore. ( We do have one in my hometown though).

Venkateswaran K Iyer said...

@anon 8.49

Why not let Vik speak for himself, as to what and who he wants on his blog?

Going by some posts Vik has made, he might have already decided that the bubble of 2007 is now totally flat.

Then again, he might not have :-)

Venkat ND

Anonymous said...

My Observations from Delhi:

The houses to sell are still priced very high. They are down only 5-10% from their peak prices. FOr instance prices in some areas of Gurgaon are down upto 15-20% only. In Delhi, a lot of sellers are still in denial mode and there are still a lot of fools out there who cannot resist the temptation and they go ahead and buy at high prices.

My predictions for Delhi are not too optimistic as the prices are unaffordable by masses. A normal 2-3 bedroom flat in Delhi outskirts is between 60-80 lac rupees. Noida, Gurgaon, Faridabad, Ghaziabad and Chandigrah road all are full of new flats. The avg. salary is way low than 60 lac rupees. If you go to some nice parts of Delhi, flats are in crores.

The prices are way too high that can sustain. With layoffs coming in future, and banks not giving enough loans, speculators being out of the market, the prices may drop easily by 50% in the coming 2-3 years.

Anonymous said...


I am anon at 4:17 and i am not giving any crap. I dont want to divulge where i stay or who I am . We did move to an apartment in 2008 and after a year of stay there the apartments are still 50% empty. If you want more specifics the area is RA Puram. So before you accuse somebody of bullshitting be rational. Some might want to give specifics some might want to give hints. I am the latter. when everyone harps about specifics how else do you ascribe to views given in ET which are so random and have no specifics. when we can accept generalized statements given by a paper why not listen to a view given by a fellow blogger.

for those who think we are in no bubble, great !! please go and buy the homes right now.

I am a firm believer of market economics and how things should be priced. The going rate should be around 5000-6000 at max in chennai for areas like mylapore,alwarpet but it is hovering near 11k right now. my guess is there are very very few buyers who can buy at these rates and I am an NRI and i cannot afford any two bed apartment anywhere in chennai. I would keep renting till i find something whose EMI is 40% of my household income.

But yeah this is getting really nasty with some nitwits who are using this as an abusive forum. if you are a buyer my sincere advice would be to wait. Job security is more important and we dont have bankruptcy protection laws in india . so if you cant pay you would be jailed. so think carefully folks...

Anon @ 4:17

Anonymous said...

Anon above:

I believe you. I've myself seen many buildings especially at night time that are 70% unoccupied. FOr example in the Dwarka area of Delhi, in Noida and Gurgaon. One easy way is drive around night time 7-9Pm and see how many lights are turned on or the parking situation.

As regards to price declines, people in India are in for a massive surprise as a lot of paper money is going to dis-appear as it did for a lot of Americans.

Anonymous said...

Are the loans in India recourse or non-recourse loans?? Would the lenders go after your assets in case you default?

Be careful before people sign any papers. Don't be greedy and wait patiently.

Anonymous said...

It is misleading or right direction, only time will tell. I can tell you that what builders and other realtors are doing is not just misleading but a crime against naiive people.

9:43 AM

Since 2005 Vik has been prediciting this so called crash. What has happened? So we must also take the bulls opinion with a pinch of salt.

Anonymous said...

Anon above,
If you think Vik is wrong, why don't you go ahead and buy some flats and be happy. Why are you wasting your time here.

Anonymous said...


Your Friend bought from amrapali at 30,00,000 / 1400 sq ft = 2142 Rs psf. This was a high a price at that time.

I am discussing the case where I booked the apartment at 1500 Rs psf. Amrapali asked me to pay additional 4.5 lakhs.

the sales guy Vikash (he is now fooling people at sector-117 noida office) told me that since my apartment is worth 12 lakhs more than what I booked, I shouldn't mind paying a few extra lakhs..

You should read the reply properly before praising Amprapali 'Chor' Builders.

Anonymous said...

Vikash should get arrested for cheating people. He should honor what is written on sales docs.

Anonymous said...

RE is going to get ugly in a year or two.

Invest in RE at your own risk.

Vik is doing a commendable job, and just because the bulls dont get enough support in this log,they should not involve in abusive languages. I suspect this Bull lobby is from the RE gang.

(Just like and Cong and BJP had their own paid people to write favourably on the net during elections.)

Anonymous said...

Nothing can be done agsinst Vikash as he is just an employee of Amrapali..

All I would suggest is that stay away from Noida Sec-117 & 119 projects...

Avoid Amrapali and Gaur.

Anonymous said...

I wouls say avoid all builders. They are same race governed by greed and unethical behaviour.

vinesh said...

nice posting

Madurai Hotels

rajni sharma said...
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rajni sharma said...
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