Friday, September 04, 2009

Rich in India aim for fixed returns, shy risk: Deutsche Bank

I love the dicotomy in reporting by Economic Times and the Times of India property times, both papers belonging to the same company, Bennett and Coleman. Deutsche Bank says that rich folks with minimum assets of 4crs and above have very little appetite for real estate, on the contrary the Times of India says that property sales are picking up in the upper segment. Now the question is are there two sets of rich folks in Mumbai, or are we suckers like they say in Mumbai "Alibag se ayaa hain".
MUMBAI: Deutsche Bank sees little appetite for riskier assets among India's rich despite a more than 60 percent rebound in the domestic stock

Ajay Bagga, head of the German bank's Indian wealth management arm, said its assets under advisement had risen by more than a quarter in 2009 but clients were seeking safe-haven investments. "Most of the money is still very short-term, very fixed return, very preservation oriented. Very little money is looking at taking risk," Bagga told Reuters in an interview.

Deutsche has a 55-member wealth management team spread over five large cities in India and services individuals with at least $1 million in bankable wealth. Bagga said while some clients had started to invest in stocks, demand for real estate and private equity investments remained low.

"Clients have lost that bull market frenzy of chasing returns. It is back to sober asset allocation," he said. The world credit crisis has wiped away trillions of dollars of wealth globally, cutting profits of wealth managers who charge higher fees on riskier asset classes such as stocks as compared with short-term investments such as money market funds.

In India, the number of wealthy fell by nearly a third to 84,000 in 2008, the fastest drop in the world after Hong Kong, as a 52 percent slump in domestic shares hurt the net worth of individuals. By comparison, the world's rich lost a fifth of their wealth in 2008 and their number fell 15 percent as the financial crisis wiped out two years of growth, according to a Merrill Lynch/Capgemini report. Their wealth dropped below 2005 levels to $32.8 trillion.

42 comments:

Anonymous said...

Construction Loans Falter, a Bad Omen for Banks

By FLOYD NORRIS
Published: September 4, 2009


EVEN as the economy may be starting to recover, banks across the country are confronting a worsening outlook for their construction loans, an area that boomed for much of the decade.

It is in commercial real estate construction — be it stores or office buildings — that the pain seems likely to rise. At the end of June, $291 billion in such loans was outstanding, down only a few billion from the peak reached earlier this year.

“On the commercial side,” said Matthew Anderson, a partner in Foresight Analytics, a research firm based in Oakland, Calif., “I think we are fairly early in the down cycle.”

Foresight estimates that 10.4 percent of commercial construction loans are troubled, but expects that to increase as the year goes on.

Anonymous said...

IT sector to see further job cuts

Published on Fri, Sep 04, 2009 at 08:41 , Updated at Fri, Sep 04, 2009 at 09:51
Source : CNBC-TV18

Email Print
Ads by Google
Intra-Day Trading Tips
Earn 100-200% Per month by Trading more than 90% accurate
www.CallOptionPutOption.com

The employment outlook for IT companies is not expected to get any better. Experts predict that layoffs, hiring freeze and no increments may continue in the year ahead. CNBC-TV18’s Sunanda Jayaseelan reports.

Lay offs seem to be continuing unabated at it companies. CNBC-TV18 learns that Wipro has given 100 employees, with 10-15 years experience, a three-month notice starting last month. The IT major has been hit hard because telecom, a significant contributor to revenues, has seen lower growth than other verticals.

When contacted, the company said, “It is completely speculative. We do not comment on speculation.”

Mid-sized it player MindTree is cutting flab. We learn 200 entries to middle management employees have been asked to look for other jobs this month.

When contacted, MindTree said, “There is no truth in the information that we are asking 200 people to leave in September. We completely deny this statement.”

The other downside will be campus placements. Wipro for example has said it will be able to take a call on whether it will go to campuses only by early 2010. Experts say hiring numbers could come down drastically.

Kris Lakshmikanth, Managing Director, HeadHunters is of the opinion that hiring could come down by 70% compared to last year.

Seconding Lakshmikanth, BS Murthy, Chief Executive Officer, Leadership Capital Consulting, said, “Net addition usually is around 15-25% per annum. This year was around 10%. Going forward, we expect it to be even less.”

Fewer jobs and more supply may hit salaries. Infosys says there will be no increase in salaries for next year. Wipro echoes a similar view.

Pratik Kumar, Head - HR, Wipro, said, “Over the past one-two years we have seen no increase in salaries. We have no reason to believe that will change. It is difficult to imagine that the sector will increase salaries for next year.”

Experts also point out that bench at it companies, which had come down to negligible numbers thanks to the slowdown, will continue at such levels as companies try to optimize utilization.

Anonymous said...

Bench levels have not come down in TCS.

There are still atleast 35% of the total employee strength in bench.

We were told in the last meeting a number of 42000 on bench, with no work.

And no one's replied me about the place called airoli in mumbai.

Could anyone tell me what kind of place it is?? How far is it from city and other info, please..

K.Gokul

Anonymous said...

Gokul,

Airoli is in the outskirts of Mumbai. One can commute from Airoli to Mumbai via - car, train and bus. If you cross the airoli bridge you are in Mulund which takes about 15 mins. And Mulund is a part of Mumbai, from Mulund you can commute to anywhere in Mumbai..

You can also google maps to have a look at where airoli is vis-a-vis the rest of the city. Airoli is a nice place very industrialised and very quiet/green (at least it used to be 2 years back)..

Hope this helps.

Anonymous said...

Vik,

Shut this site for two years and then you can start once again otherwise you will only be misleading the people.

Regards,

Bindas Bhai

Anonymous said...

Housing Development Says Demand From Overseas Indians Is Rising
Share | Email | Print | A A A

By Patricia Lui and Sumit Sharma

Sept. 5 (Bloomberg) -- Housing Development Finance Corp., India’s biggest mortgage lender, said home demand from Indians living overseas is rising as the global economy recovers and interest rates remain low.

Home loans to non-resident Indians currently account for 14 percent of Housing Development’s business, Joint Managing Director Renu Sud Karnad said today at a property exhibition in Singapore. The pace of increase in loans extended to non- resident Indians in Singapore could surpass the company’s 20 percent per annum rate of loan growth in the Middle East that contributes the biggest share of business overseas, Karnad said.

Consumer demand for home loans in India is reviving after the central bank cut its key rate by 425 basis points since October to the lowest on record in a nation that has a shortage of 24.7 million housing units. Housing Development in July reported a 21 percent increase in first-quarter profit to 5.65 billion rupees ($116 million) as a drop in borrowing costs and decline in property prices lifted demand for home loans.

“It’s a good time to invest now as prices have come off quite a bit due to the global crisis but have started to inch up already in the past two months, especially in Mumbai and Delhi,” Vice Chairman and Managing Director Keki Mistry, said at a press conference today. “Interest rates won’t be rising too much due to ample liquidity.”

Property prices in central Mumbai and New Delhi have risen 30 percent since May after falling 35 percent to 40 percent during the global crisis, Mistry said.

To contact the reporters on this story: Patricia Lui in Singapore at

http://www.bloomberg.com/apps/news?pid=20601091&sid=a2V.zYjgUvOE

Anonymous said...

The best is yet to come...

PROPERTY TRENDS It seems the worst is over. The mood in the Indian real estate market is upbeat and buoyant. “Survivors” feel the recession has actually done the industry a favour by bursting the unnatural bubble of spiralling prices created by panic originating from the West, writes Shonali Prakash

TALE OF TWO CITIES Prices in the Bangalore realty market shot up to a greater level than Hyderabad FILE Photos
There was a time not too long ago that property prices were booming. The market went up manifold between 2003 and 2008 and then crashed in the last few quarters. Yet, it was not a surprise to many. The reason - safety and caution.
Sushil Mantri, CMD, Mantri Developers, feels his company was “saved in this recession because of the instruction of the board in June 2007, following which, not a single property was purchased.”

“Because these prices had gone up beyond certain viabilities, we did not purchase any properties and hence, did not feel the need to borrow any money for the purpose.”
“Growth at a breakneck speed has always resulted in a fatal fall,” rationalises A Balakrishna Hedge, former president, CREDAI- Karnataka and MD, Chartered Housing.

“This is what happened during the last two years preceded by a growth at breakneck speed during the earlier two-three years. But one should also note that Bangalore was an exception because of the reasonably good demand due to job creation at an enormous scale. Though there was a demand from the actual users, the monetary measures taken by the RBI starting latter part of 2006, resulting in the escalation of housing loan interest rates from around seven per cent to 13 per cent was the dampener.”
A practical approach seems to be in vogue. “What we are seeing presently, is the post correction situation. Real estate always sees a cyclical period of 8 to 10 years. We are in the early stages of upward movement,” feels Suresh Hari, former secretary, CREDAI.

Reports suggested that the pan-India price reduction was to the tune of 15-35 per cent, depending on various categories and geographies. So how did recession affect realty in the two tech-power hubs of Bangalore and Hyderabad?
Recession, realty and IT
Repercussions were obvious in the real estate markets of both cities, though of varying degrees due to basic differences in demand-supply as well as geography. “While Bangalore and Hyderabad are real estate markets at different stages of maturity, they appear to have gone through similar patterns during the recession,” observes Samson Arthur, General Manager, Quinn India, part of the Irish conglomerate, Quinn Group. “Both have been adversely affected by a significant reduction in demand, but this seems to be temporary and both markets should recover strongly when demand returns, to enjoy the same economic fundamentals which have made both cities, and South India, in particular, key locations for businesses worldwide.”

Speculation-driven prices
The real estate market in the whole country was affected in similar ways in terms of speculation driven prices leading to excess supply coming up, notes Hari Chella, Managing Director, Aliens Group, Hyderabad.
“However, there were regional nuances. While Hyderabad got affected because of the adverse impact of the IT industry and its fallout, Bangalore seems to have been one of the worst-hit real estate markets in the country.” He explains why. “Hyderabad has other segments that were able to provide some cushion, specially the pharmaceutical and government sectors. Also, the prices in the Bangalore market had increased to a level much more than Hyderabad and were beyond the reach of a majority of the customers.”

Anonymous said...

One can say the “bubble” was formed much more in Bangalore while in Hyderabad it was just starting to build up.
Bangalore, currently, has less supply compared to Hyderabad, feels M Murali, MD, Shriram Properties, Bangalore. “On the other hand, Hyderabad has a better infrastructure compared to Bangalore.” He explains, “While good infrastructure is good for any city, it would generate a bigger supply than the demand. This would therefore, be good for the growth of the industry and economy.”
The IT industry is not just limited to Bangalore and Hyderabad, notes Sushil Mantri. “IT and ITES directly affects six cities namely, Delhi, Mumbai, Pune, Bangalore, Hyderabad and Chennai. In fact, these were the fastest growing cities in the world. Because of this, other industries have also grown. Today, we have 60 per cent of customers from non-IT sector and the remaining from IT.”

The Indian real estate market went through the bottom of its cycle earlier this summer and is now starting to see some early signs of recovery, notes Gary Conway of Quinn Property. “This understandably coincides with the recovery starting to come through in key export markets such as the US and Europe. This recovery is expected to continue during the rest of the year and gain momentum through 2010.”
The normal growth rate is already here, says Hari Chella. He adds, “It’s just that we will not see the kind of boom experienced in 2007 for the next few years. The market has readjusted itself to a lower price point where there is sufficient demand. The market bottom was hit in March 2009 and from here on, both sales numbers and price will continue to rise, albeit at a slow pace to begin with.”

With expectations of realty players high in 2010, to see better volumes in the market, it may well mean the reinstation of a multi-dimensional industry that is more cautious yet stable in its approach to its cyclic shock treatment.
http://www.deccanherald.com/content/23171/yet-come.html

Anonymous said...

Godrej Properties acquires land for township in Ahmedabad
Maulik Pathak & Vinay Umarji / Mumbai/ Ahmedabad September 3, 2009, 0:24 IST

In what could be the first major land deal in Ahmedabad after Tata Motors parked their Nano project at Sanand a year ago, Godrej Properties - the realty vertical of Godrej Group has completed acquisition of over 100 acres near Ahmedabad for its 'Godrej Garden City' project.


Also Read

Related Stories

News Now
- Dozen small and mid-sized Gujarat players aim IPO
- MCX-SX to divest 50% stake much before deadline: Chairman
- Listed firm promoters can make offer for sale: Sebi
- Godrej Security targets Rs 460 crore for premises security
- Austral Coke postpones board meeting
- Godrej Security plans to achieve Rs 1,000 cr turnover in 4 yrs

Also Read

Related Stories

News Now

- Weekly review: Sensex declines 233pts
- Johari Digital to foray into retail and medical spa space
- Data from Chandrayaan-1 being used for second moon mission
- Maruti to partly shift car prod from Gurgaon to Manesar
- India condemns attack on priests by Maoists in Nepal
More

The township, proposed to be spread in about 250 acres, will offer affordable homes in the range of Rs 20-25 lakh. The company had proposed an investment of Rs 5,000 crore for the project to the state government earlier in January this year.

The project was recently selected among 16 founding projects across the world for the Climate Positive Development Programme, launched by former US President Bill Clinton. Atleast two developers privy to the development confirmed the deal and said that Godrej Properties has completed transaction for over 100 acres of private land at Jagatpur near SG Highway. "The deal was brokered by a local developer who is setting up a hotel project in the area," sources said. The size of the deal was however not known.

Industry experts believe that when the project materialises, it will be the largest ever of its kind in the city. The housing project will be spread across 30 million sq. ft of area and it will house residential as well as commercial properties, said sources close to the development.

Godrej Properties aims to create an integrated township within the city limits of Ahmedabad by providing a mix of residential, commercial and public spaces, said a company spokeperson while refusing to divulge details about about the deal.

The company aims to hit the capital market in the next couple of months, if the current uptrend in the market continues.The company has already got clearance from Sebi for the IPO, which will involve fresh capital issue of 13.5 per cent stake.

Besides Ahmedabad, the company is coming up with affordable housing projects in Bangalore, suburbs of Mumbai, Pune, Kolkata and Chandigarh.

Anonymous said...

bindass Bhai on a spam mission!!

I don't know why he cannot just post a link with a summary or his take on the article?

I suppose by posting so many of these stupid articles, including copy pasting entire articles he wants viewers of this blog to get the impression that RE markets are in the upsurge...

Most viewers here are more intelligent that Bindass and will not fall for such stupid tricks...

Bindass, you have already sold your inventory. Then what are you doing here? Charity?!! A RE agent?!!

Anonymously posting gaali's at anyone who writes sensible logical articles? So that all the sharif people go away and goons like you can write bakwaas..

@di said...
This comment has been removed by the author.
@di said...

Just to give an indication of the situation on the ground.

For past 4 years, the houses around Indiranagar, Bangalore were turned into PGs.

For those who are not aware of Bangalore PGs, they stood for flats/houses/rooms converted into slums by putting 4-8 beds in each room and each bed was charged 3-4 K per month. Every possible area including kitchen was used for this purpose.

Since there was a huge influx of people from every part of the country, this model sustained for over 5 years even with being one of the most inhumane/evil scheme to make quick money.

This also pushed the rents in these areas beyond logic as a house owner could easily convert his house into dungeons and earn 4 to 5 times of the rent he'd get if the same house is rented to a family.

Those who did not want to turn their house into such mess, were still able to command high rents because of the shortage of livable houses.

These high rents were primary driving force behind many people's decision to go for EMI based loans which they thought (and fooled into thinking) is essentially saving into a future.

Not any more !!!

With all kinds of job disappearing and many of such aspirants moving to different cities, these dungeons (PGs) have started losing "business".

One of my neighbor had taken a 1 and half bedroom house (750 sqft) and converted it into such PG. Using the same scheme, he had put 12 beds and was charging 3K for each.

So a below par house, which otherwise would not have commanded more than 5 K of rent was fetching 12K for the house owner and the person running the PG was able to make around 20K/month after rent and expenses.

With the bubble going burst, he has found all but 3 bed becoming unoccupied and he's loosing 3K per month just on rent.

So to anyone who thinks that investing in property is still a good idea, I wish them all of luck.

Personally, I want everyone else to buy a house so that I have huge options to rent at cheaper rate :)

For those with sense, just wait and watch!

Vik said...

BindasBhai the true one or the fake :
you can choose to ignore the data at your own peril. I have repeatedly said buy only if you can afford to accept a notional loss of 46% if you leverage a loan. There is 2.3 Trillion of home equity which was withdrawn from home equities in the US, and that money is not coming back. We are all facing lower standards of living, whether we like it or not. Builders will try to trick buyers by playing poker. There are some people who can afford it so let them buy it.
For the record I can afford to buy but I will not, specially Mumbai. I don't have black money and I am not willing to lose my hard earned earnings on some stupid over inflated ponzi scheme.

Anonymous said...

Hey Vik,

Well said! This blog has helped me to place cogent arguments to some of my friends by just sending them a link and having them read back dated posts...

The likes of Bindass are crappy conmen...they are the vultures who prey on people's sense of trust and need. They con people who have worked hard all their lives and saved some bit of money...Looters and criminals is what I would call people like Bindass. It would be extremely sad, if you were to close down this blog because of such jokers!

Anonymous said...

@Aditya 10:40 AM

Well said..!!! Let these greedy owners crush under ballooning EMIs.

Anonymous said...

We are missing the main villain of this story of Real Estate Bubble. The petty criminals i.e. brokers are becoming the target of angers. Yes they should be punished for their immoral behavior but what about the big guerilla sitting in the room which is going unnoticed. It is nothing but the lenders i.e. Banks. Had the banks not rolled over the debts, all these criminals would have been trashed under the debris of real estate crash.

The banks very well know that there is a special class of slaves... yeh you guessed correctly .. Middle Class or so called Upper Middle class. This class will work throughout their lives working hard to pay the EMIs and making sure that the Banks Managers and Builders nexus thrives forever.

Please check the following link to know how the Reserve Bank of India and several national banks helped bailing out these crooks. But one thing is sure that this ponzi scheme is on the last leg since the new entrants e.g. IT Techies ( hard hit due to recession and lay-offs) have disappeared. In few cases the passed outs of 2007 batch have been asked to join the BPO unit for the consolidated salary of Rs 5000

HDIL Rolls Over Rs 2,500 cr Debt
Indian Realty News

Housing Development and Infrastructure Ltd (HDIL), a Mumbai-based property developer, has rolled over Rs 2,500 crore debt it has taken from commercial banks for the next 15-18 months, a top company official has said. The company has rolled over the debt taken from public sector banks such as Bank of India, Union Bank of India, Punjab National Bank, Uco Bank, among others. The restructured debt was due in the next couple of months.


~ Almost all real estate developers have used the recent lifeline allowed by the Reserve Bank of India to restructure their loans as they are hit by slowing home sales and mounting debt.

~ DLF, the country’s largest realty company, refinanced about Rs 2,000 crore loan at a 12-13 per cent interest rate out of the Rs 4,300 crore it needed to repay by June this year.

~ Unitech , has restructured Rs 1,000 crore of debt with public sector banks and rolled over Rs 500 crore it has borrowed from mutual funds for three months.

~ Developers such as Omaxe, Puravankara and Sobha Developers are in talks with banks and financial institutions to restructure their loans. But analysts say restructuring will only solve short-term worries of realtors. “Realty companies are either rolling over their loans or refinancing to pay their existing loans, which is increasing their debt levels. Today, their debt levels are the same as in March 2008,” said an analyst with rating firm who did not wish to be quoted.

Anonymous said...

BB ,

Don't visit this site for next 2 years and lets discuss in 2012.

Kannan

Anonymous said...

Me not visiting this site will not help innocent buyers who want to buy but are getting carried away by jerks like you who have selfish interest.

I don't have to prove anything what i have told has only come true. I will again discuss with you about my prediction in Dec 2010, by then property would have appreciated by another 50% from pre-election results rates. ( iam talking about Mumbai)

Some guys are mentioning this is the last leg, sound very funny. Guys have a ball and keep money in the bank.

Excess liquidity will drive the prices high across all sectors. Value of money will depreciate in just one year at least by 10%.

Finally the call is your either abuse me or eat the humble pie.

Bindas Bhai

Anonymous said...

' will again discuss with you about my prediction in Dec 2010, by then property would have appreciated by another 50% from pre-election results rates' : well then why are all investors exiting now ? they might as well hold on another year.

Anonymous said...

already in chembur prices are up almost 50% from pre election, it was 7k around station, now 10.5k, so its peak, now better to keep in FD becoz these will stay stable for a couple of years. and buy later.

Anonymous said...

BB -

It is the job of shills like you,ToI to shout from top of the roof says "market is going up! and best time to buy the property".

Desperately like to get money...

If this is case like you have mentioned. I dont know why Tatas, Ambani's, Birla, Mittals have to to run a factory, produce, sell and make meagre 10-15% profits.

They all can simply buy RE around mumbai and double their assets in just 2 years.

Go and Buy more...

- Kannan

Bindas Bhai said...

Investor will come and exit that is why they are called investor. Some are long term investor and some are very focused short term investor.

about: Chembur
Thanks for letting the forum know about Chembur. This part of Mumbai i.e. Chembur will appreciate by a another 30 to 40% by next Diwali. Chembur has lot support to go up and i personally see Chembur between 13 to 14k (diamond garden).

about: Tata's and Birla

Tata, Godrej, Ambani and Mittal (India Bull) all are already in my friend.

This site has been predicting about the crash since 05-06. Kindly look at older post and see where you all guys have gone wrong!!

Bindas Bhai

Anonymous said...

The article seem to be correct. I know many NRIs who had opted for FDs rather than Stocks, MFs, NCDs, Gold ETFs, ULIPs and so on. I am referring to liquid instruments rather than property. The rules of investing in India especially for liquid instruments are same for Residents and NRIs. The documentation requirements are tedious. Some of these organizations demand attested documents from consulate. It requires travelling to another city, lose a day and complete the process. Some times the work doesn’t happen on a single day. The Indian finance institutions are complete ignorant of difficulties faced by NRIs. The upfront fee and annual maintenance fee are kept high for NRIs. The customer support for NRIs is lukewarm. Believe me, as a NRI, to redeem the MF cheque which the fund agency quoted wrong account number, it took more than 6 months. There was no one from the organization to understand the NRI difficulties except chanting rules & regulations over phone. I had to visit India to resolve the issue. Once a NRI opens NRE/NRO account, he/she can book FD online without any hassles. Try any other instrument, the procedural requirements are so cumbersome that you feel irritating and wonder why investor has to take all these pains for giving business. Obviously the institutions should understand that they should not treat investors as beggers once the money is in their hands.

Anonymous said...

BB,

You moron, why did you exit your property in chembur if you are so confident that it will go up by 30-40%.

You are just an empty headed loud mouth. Everyone has discovered that you are nothing but a real estate agent. If you are afraid that this site will have a big effect on your clients then you are a bigger moron and a coward then I thought before.

Nevertheless, since we now know that you and others are scared of buyers being swayed by this blog, me and others are going to double our efforts to convince people that they should protect their hard earned money and wait for the market to fall. As well as stay away from touts like you...If you can post 4-5 posts, believe me all of us combined can post 50 posts with more convincing arguments!

shailesh said...

BB: See your Mumbai is already Slumbai. Chembur will fare no better.

Slumbai beats all - well almost

According to a Human Development Report by Brihanmumbai Municipal Corporation (BMC) and the United Nations Development Programme (UNDP), Mumbai has lived up to its pseudonym Slumbai. The report has confirmed that the city is home to India's maximum number of slum dwellers.

More than half (54.1%) the population of the country's financial capital dwells in slums. Percentages for other key metros are nowhere close to Mumbai. Kolkata has 11.72%, Chennai has 25.60%, while the National Capital has 18.9% of its population living in slums. It is worth noting that in 2006-07, the Mumbai had a per capita income of Rs 65,361, which more than double of India’s average per capita income of Rs 29,382.

shailesh said...

Real estate prices won't rise around festive season

Talking to Hindustan Times, Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj (JLLM) said, "Developers have realised that they can no longer increase the prices at will as the customer will just not buy the product," said Puri.

He added that since consumers had returned to the market after a lull, developers were not keen to alienate them by quoting high prices.

Puri said that the current market rates were similar to that of mid-2006 levels when the market was just picking up and said that it was the best time to buy.

However, unlike the last few years, this year, the festive season will witness fewer number of new project launches, falling by approximately 35 percent. Though major builders like Hiranandani (Goregaon), Supreme and RNA (Chembur) and Matoshree (Parel) will launch some projects around Diwali, many others have deferred their projects.

"During the last one year we have faced a lot of problems and we have recovered. Our focus is to complete our existing projects and only then will we think of launching new ones," said Anand Gupta, General Secretary, Builders Association of India, an apex body of the construction industry.

Some developers are even adjusting their projects to suit low cost buyers.

Last week, Nahar Builders launched an affordable housing scheme at Powai at Rs 5,900 per sq ft in a complex where the going price was Rs 7,000. "The buyers of affordable houses will have smaller houses and less amenities," said Sukhraj Nahar, director, Nahar Builders

shailesh said...

City builders bag Rs 2K-cr project near Pune

shailesh said...

In realty, customer is looking at value buy: ASK Advisors

Real estate markets are unlikely to witness a ‘V’-shaped recovery, argues Mr Amit Bhagat, CEO and Managing Partner, ASK Property Investment Advisors.

I am very clear that it is not going to be a V-shaped recovery from here.

For one, real state markets do not have V-shaped recoveries anywhere; 1996 to 2002 was flat, then came the boom. In fact in 1997, there were commercial complexes left midway in construction and completed only in 2001-02.

Two, interest rate cycles vary. In the earlier cycle, it took eight years for interest rates to decline — interest rate in 1996 was 16 per cent, in 2004, it became 7 per cent. Cycles are much shorter today. There has been a 25 per cent reduction from 12 per cent to 9 per cent in 10 months.

But when is the buyer stepping in today? Look at the market over the last six months. In 2008, people did not buy. In the first quarter of 2009, too, they did not buy, when the prices fell by as much as 35 per cent.

Now they have stepped in because it is a value buy, despite the construction risk involved. So, today, the customer is looking at a value buy. Therefore, the developer has to either keep prices low or has to tie-up with funding agencies such as private equity and complete the projects to get a delta premium for the built property.

Anonymous said...

More than half (54.1%) the population of the country's financial capital dwells in slums. Percentages for other key metros are nowhere close to Mumbai. Kolkata has 11.72%, Chennai has 25.60%, while the National Capital has 18.9% of its population living in slums. It is worth noting that in 2006-07, the Mumbai had a per capita income of Rs 65,361, which more than double of India’s average per capita income of Rs 29,382.

Wow, 54% population in slum but still the per capita income is more then double. This city is amazing i just cant imagine how many rich people will be there in Mumbai compared to other cities in India. No wonder Bombay is so expensive.

Anonymous said...

Only one guy who talks sense in this forum is BB. Guys dont feel bad but this fellow really means what he talks unlike most of us. Guys who are calling him names really shows how closely they are reading his post.

All the best BB, I had taken your advise in Feb this year and have saved 38,96,000/ till date. Thanks once again.

Vik, my special thanks to you for allowing guys like BB to post without editing.

Atul Kulkarni

Anonymous said...

The economic downturn train fuelled by all sort of losses is hurtling at an accelerating pace and there are morons who is taking it as a light at the end of tunnel.

Five more banks fail -- 89 so far in 2009
Amy Haimerl, CNNMoney.com senior producer
Last Updated: September 5, 2009: 5:58 AM ET

NEW YORK (CNNMoney.com) -- Five small regional banks were closed by regulators on Friday evening, pushing 2009's tally so far to 89 institutions. Of the five failures, two were in Illinois, and there was one each in Arizona, Iowa and Missouri.

Vik said...

I'm glad atleast there are some people who are benefitted by BB's bullish comments. In any market there are deals available so if you get them more power to you and if you have the cash. I don't believe in editing posts unless they are profane, racist or discriminatory in any way.

Anonymous said...

http://timesofindia.indiatimes.com/news/city/mumbai/Mumbai-still-short-of-over-2-lakh-million-litres-of-water/articleshow/4983032.cms

Mumbai as a city is going to have all kinds of problems in the near future..water shortage, annual floods, electrity shortage, goonda Raj, accelerated cost of living, drying up of jobs and then also things like the name slumbai connotes..

Best of luck to BB aka, Atul Kulkarni(self congratulatory posts, BB is so predictable)...I think everyone should look for places as far away from Mumbai as possible. Specially areas like Chembur!

Anonymous said...

Atul would be looking for BB with a cane in his hand to beat the shit out of BB in a year from now. If BB is same as Atul, BB would go down in depression as he is really trying hard that people buy. His mental balance may break when the RE market in India slides down by 50% or so in the next few years.

Anonymous said...

Anon@2:45 PM

BB says he sold his flats recently to take advantage of the peak prices in Chembur. Then he says that prices will rise 50% very shortly!!!!

Why do you think he himself does not want to take advantage of the roaring bull market but is advising everyone else to buy??!!

I am very confused :(

Anonymous said...

BB is a paid Blogger.
Why do you think he is so active on this blog.

F****R Claims to earn a crore a month and instead of doing productive things / enjoying life is busy arguing with others on this blog.

Don't give a shit to Sandaas Bhai's comment, he must be making cool 5-6K a month by posting on blogs.

Anonymous said...

Hi,

New Vashi hunter here.Any agents reading this blog?

Anyway I have a requirements -In MORAJ Residency Palm Beach road,I need 3 BHK with Stilt own parking.My offer is 46.5 L ,all white in one shot( I have negociable 51 L Offers.Can Give 1.5% commission insted of curret norm of 1%( That can be arranged in part cash)I can spend additional 1 L on another own stilt parking.
Make your offers to mumbai10000@gmail.com

Remember - Need 1052 Sq Ft ,If there is no work in flat noissues,need clear title and NO TOP FLOOR.
I CANNOT PAY ANY PART IN BLACK
Any + or - please mail....

BB pls can u help?

Anonymous said...

Do not invest in Godrej Properties. There method of accounting is full of fake & investors please check the profit booked its all fake. Do not invest the market price will be 30-40 rupees per share when it is listed.

Anonymous said...

Fund "MultiIGroup" invites you to use the service "confidential management" of money resources on the market of secure investments. "MultiIGroup" is your beneficial and reliable partner in the online investment world.
Our investments plans:0.5% - 1.5% day
Financial Independence means the life at the highest level!
[url=http://multiigroup.com?ref=43]Fund "MultiIGroup"[/url]

SHARETIPSINFO said...

Commodity trading is gaining lot of popularity in India. MCX and NCDEX are most popular commodity exchanges of India. MCX and NCDEX both offers hi tech platform for commodity trading. Commodity trading should have clear picture like how they can earn money from ncdex or mcx trading and for that they need to track various listed commodities and should rely on research rather than speculation.
http://www.sharetipsinfo.com/share-market-investments.html

buzzingstreet said...

In the article below you would get to know when to expect high returns from share market and is it really possible to earn high returns from the stock market trading

rajni sharma said...
This comment has been removed by the author.