Article Link
Around 3,700 luxury apartments are currently under construction in Mumbai and its suburbs with a price tag of $1 million or more, according to Delhi-based research firm P.E. Analytics Pvt. Ltd. Of these, around 1,440 are unsold. In Delhi and its suburbs, one quarter of the 2,300 luxury apartments under construction are unsold, according to the firm. Residential apartments in India, including those in the luxury market, are typically sold before they are fully constructed. Analysts say that developers in India sometimes delay the construction of their project to ensure that they don't have a large number of unsold units in their ready buildings.
Some of the luxury apartments in Mumbai and Delhi have become 20% to 30% costlier than they were a year ago, thanks to growing wealth in India as well as general euphoria about the real estate market.
But now, "buyers are not happy with these high rates," says Sanjeet D. Narain, managing director of Mumbai real estate consulting firm Narains Corp.
At the same time, many buyers have a lot of money stuck in the Indian stock market which has fallen more than 10% so far this year. So, they want to "wait for some more time," says Aditya Juneja, a real estate broker in Gurgaon, a suburb of Delhi.
Subscribe to:
Post Comments (Atom)
73 comments:
HDFC realty fund starts off loading select assets
MUMBAI/BANGALORE: HDFC Property Ventures, the real estate fund of India's largest mortgage finance company, has started exiting a part of its investment portfolio. The South-based Nitesh Estates has bought back the fund's stake in a mall development joint venture even as the $800-million venture fund, anchored by HDFC, is exploring exits from several investments spread across Pune, Bangalore, Chennai and Hyderabad.
Investment banking sources said the fund has had discussions with suitors like Tata Realty and South Asian Real Estate Fund (SARE) among others, as it looks to sell a part of its asset portfolio being developed or managed by several leading real estate firms. HDFC, which raised the fund from overseas investors more than four years ago, is hitting the market to offload some investments even as the real estate recovery, especially in the commercial segment, still remains tentative.
Embassy Property Developments, which has postponed the planned $500-million IPO, citing uncertain market conditions, figures among the developers where HDFC fund is looking to offload its share of assets. HDFC has large exposure in some of Embassy's big IT park projects in Pune and Bangalore, which are on lease rental to marquee clients such as IBM and Cognizant and yielding good returns.
Realty check
The CBI will get its answer only after toiling for six months, that too with active support from forensic accountants.
At this juncture, we do not know how many unlisted front companies he has, how many such front companies are incorporated in tax havens such as Isle of Man or Mauritius, whether he has pledged his shares for any loan, or made unaccounted money through insider trading," a prominent financial analyst told MiD DAY, requesting anonymity.
Going strictly by Shahid Balwa's personal shareholding in DB Realty Ltd, it would seem that he holds only a paltry 74,340 shares, which comes to merely 0.03 per cent of locked-in shares. But nothing could he more misleading, because hardly anything is known about his stakes in unlisted subsidiary companies.
However, going by the figures indicated by the shareholding pattern, analysts have estimated his personal wealth to be a little more than Rs 1,978 crore, after his company's share price crashed due to his arrest.
"His net worth must have been Rs 2,423 crore before the stock price crashed, which means he lost around Rs 450 crore," a financial analyst said.
But clearly, it's much more complicated than that. Balwa has a fleet of four odd aircrafts ” two business jets and two choppers which he rents out through an air charter company called Eon Air Pvt Ltd when he does not use them for personal trips.
DB realty up against all-round crunch
A broker in Mumbai’s Dahisar suburb, where DB is selling 570-square-foot flats for R45 lakh said customers and investors alike were worried by delays. He said typically, the first buyers were pre-booking investors who would exit when a project is completed.
“But now investors are looking to exit due to the CBI inquiry into DB Realty," he said.
"Luckily I had not paid the token amount when news about Balwa broke,” said a customer. “I am cancelling my purchase in DB Realty.”
A buyer in a half-finished Kandivali project said he was “stuck with the property.”
A customer who had applied for R25 lakh loan with a leading private bank for a DB Property recently got a call saying there were some “issues” with the loan. He blamed it on the scandal.
“We may look at disbursing home loans for properties that are complete but we will have to take a call on the one's that are under development,” said a senior official with a private bank.
Where roadside vendors hawk flats
GREATER NOIDA: Tucked away on the other side of the Hindon river and surrounded by lush green farmland where yellow mustard flowers sway, the nondescript 'Noida extension' area has emerged as ground zero of real estate business.
On giant hoardings, cricketers M S Dhoni, Yuvraj Singh, Suresh Raina and singer Kailash Kher urge you to buy your "dream home". Walk into any of 50-odd real estate booths on either side of the road from the Noida City Centre Metro station and glib agents will offer a "perfect home" for every middle-class pocket.
Analysts say the spike in real estate prices in some parts of the country is a real concern and sales volumes have remained flat as buyers stay on the sidelines. "Overall, the market sentiment for the real estate sector is weak and investors are sceptical about investing in real estate stocks. If interest rates rise further it will only add to the weak sentiment," Niyati Jhaveri, analyst at brokerage firm K R Choksey said.
Builders have spared no efforts to capture prospective buyers' mindspace. Every 15 minutes, a text message urges you to invest. FM radio stations are buzzing with real estate advertisements. So are newspapers. The entire NCR is awash with posters, banners and advertisements announcing the arrival of 'Noida extension' as a hot real estate destination.
There are other hard truths not every customer knows about. For instance, what is being sold as 'Noida extension' is actually part of Greater Noida. Officially, no place called 'Noida extension' exists.
At the moment, Greater Noida doesn't figure in the Delhi Metro's expansion plans. But the general buzz generated by brokers is that the Metro will roll into Noida extension by 2015.
What if the infrastructure schemes don't turn out as projected? "If everything is ready, why would builders charge Rs 2,000 per square feet? They will charge Rs 6,000 per square feet," says broker Chaudhary.
What he means is that risk is in-built in the rate, grab it or leave it. Thousands have no option but to take the plunge.
Dead wrong!!!!! This is just wait and watch game plus avoid limelight by huge inventory purchases. Builders know that once conditions are right, probably after the next election, they can unload all their inventory.
The UPA govt is mired in scams and controversies and opposition is just waiting to dig up any muck. It wont be hard to connect dots and link it to the ruling elites and the origin of money.
As all of us know that 95% homes purchased in Mumbai do not have mortgages. For those with mortgages, the banks are going to be the biggest beneficiaries if people default on EMI.
We the lower middle class people are held hostage by bureaucrats, politicians and black marketers. The cream is taken by these people and their cronies while we theorize about bubble, compare ourselves with developed countries. I dont see an end to this, at least in my lifetime.
I recently visited lahore and karachi and to my surprise found that people have much better living standards than us. As for law and order, we aren't better off than them. They excel in sectarian killing wheras Indians excel in gang rapes and sodomy
Looks like the above comment is by some Paki
@8:14 PM Anonymous,
I agree with Grewal's comments. Does it matter where he is from. If someone visits Pak , doesn't mean that he is PAki.
The UPA govt is shielding all the corrupt, anti-socials, black marketers, gangsters, rapists and sundry criminals as their very existence depends on these elements.
The real estate is unlikely to crash unless the ruling governments withdraws its support. When I say ruling govt, I mean UPA as as well as BJP/Shivsena, for both are equally corrupt.
The homeless in Mumbai should organize mass demonstration like those in Egypt and these demonstration should concentrate ed in plush areas like malabar hill, caddell road, marine drive, colaba, bandra khar etc and people should use the lawns as toilets to make aware of the difficulties of mumbaites. Just thousands of people shitting in front of post building, will certainly make the prices to crash
I have a question for everyone here: If I go back to India and invest in real estate, make money, get PAN card, pay taxes, and deposit in a bank, will I be able to transfer that money to a US bank?
An interesting reading. An expat's experience of living in Navi Mumbai
http://cynublog.blogspot.com/2011/02/big-reveal.html#disqus_thread
Anon at 8:27:
You still have to pay taxes in US on your capital returns. Secondly, India has to allow the remittance in ForEx through RBI.
Stay away from India RE mess. If you already have a property you want to see and cash out, you'll get 80% money in black and is no good to you unless you put it in a bank locker.
Don't get into hawala scams or converting the black money to dollars. you can really screwed for life if caught. Do the right thing and be happy.
stop supporting these bollywood actors, cricketers, IT pros and politicians. They are screwing 700 million middle to lower class people. IPL franchises going for 300 million while majority of the people cant even get clean water.
DR. RAVIRAJ VASTU SPIRITUAL SERVICES (P) LTD. - Providing vastu consulting services, vastu consultancy services, vastu tips, vastu planning & designing services, vastu shastra for house, vastu shastra for hospital, vastu shastra for factory, vastu shastra for office, vastu shastra for education, pyramid vastu shastra from India
@ vastu consulting services
Please dont advertise your shit crap vatu jadu mantar in this blog. This blog is primarily set up to exchange real estate information.
Companies like yours cheat gullible people by promoting superstitious beliefs, witchcraft and vatsu crap .Try your tricks somewhere
Thanks
If 1000+ crores Rs scams are done khulam khula, then we shouldn't be surprised at this.
Raunchy dance at UP Congress meet:
http://timesofindia.indiatimes.com/city/lucknow/Raunchy-dance-at-UP-Congress-meet/articleshow/7518597.cms
Have a happy Friday.
@Patil Rao,
Regarding vatsu, well said
A lot of Indians would be heading back to India from Middle East. It is going to get messy. A lot of supply of cheap workers in India looking for job. And all those foreign remittances evaporating.
RE is screwed further in India. I wouldn't touch it with a 20ft pole.
Stay away till it corrects by 50%.
Anon above. Why would that be bad thing for RE? Is it because RE prices will decrease because foriegn remittance dries up or RE increase because of RE demand with increase in Rs?
Confused. Anyways I believe India has RE bubble but that bubble is not defaltable - it will keep growing ALWAYS - why? because of black money, low standard of living and Indian attitute towards life.
Any predictions when my 1 crore worth property be 2 crores? I'm sure there are hell of buyers out there with cash.
@ Anon above
Assuming inflation is proportional to realestate price rise and using rule of 72, your 1cr would fetch you 2cr in 4 years time. (Inflation is 18% in India. Don't believe the govt figure that says 10%. Real Estate is the best investment currently. I started with 20 l in 2005 and my net worth now is nearing 7 cr as of today. I've never played share market and never will. My target is 15 cr and i'll be gone from Mumbai. I hope to reach my target in 2015. and guess what, i will be celebrating my 31st birthday in 2015.
Anon above:
You are dreaming. 15 crore is 3million USD. The day aam Indians like you start having that kind of money, it will not be India but a better country than USA.
So stop dreaming that RE will appreciate till 2015 and try to unload some of your assets. Real interest rates in India are negative due to inflation.
anon at 1.07
How did you make 7 cr from 20 lakhs in 6 years using 18% inflation rate, please explaing your math...
I think ask him where did he get his first 20 lacs from? Did he inherit or steal or earn? If he earned, what job pays him 20 lacs after all taxes and expenses? If he is that smart wtf is he doing on this blog? He would be hired at a salary of 5Million USD by wall street.
Real estate appreciation is all done and over. It can only go down from here. However the correction will not be more than 30% (a 50% crash is way too extreme). Let us say this 30% correction happens over the next 12-18 months then after that the prices can stay flat for another 3 to 5 years and that will be equivalent to a 50% crash.
However, if you really want to buy at fair prices, be ready to wait for 5-7 years.
- V
@Anonymous above
Real estate appreciation is all done and over!!!!. You are making a statement as if you are an authority on real estate. I've been hearing this for the last 5 years from experts as well as amateurs.
There has to be an outlet for the money generated by scams, public cheating, bribes, ex torsion etc. Where else can ministers, black marketers, bureaucrats invest their ill gotten wealth.
Gone are the days where they could hide the money abroad. All other form of investment is risky and can be taxed, robbed etc.
My contention is that as long as corruption remains, we wont see a downward trend in prices
This is a hard fact, difficult to digest. In the meantime if you can comfort yourself like many 'MUNGERILALS' (daydreamers) , go ahead and enjoy and pass on the dreams to others
This blog should not be called India's housing bubble.
It should be called India's inflation.
Housing values will not go down because inflation is so high. Putting money in real estate is one of the best ways to combat inflation.
If anything, the value of the rupee will go down in the future.
Disgusted manus, there was a reason for prices to go up during the last decade - salaries went up too. My own salary is now about 12 times the salary I started at in 2002.
If home prices went up 5 times in the same time, whats the big deal?
But can my salary can even double from here? I don't think so. Because if it does, I would start getting more than what a person in USA in a similar position gets.
That is the first reason why salaries and hence real-estate can't go up another 3-5 times from here.
Secondly, there is a thing called reversion to the mean. If something goes out of whack, it falls back in line after a while.
Finally, I am not stopping anyone from buying. If you can, sure go ahead.
- V
http://www.dnaindia.com/india/interview_ahmedabad-based-company-offers-you-a-10pct-per-month-return-on-your-investments_1509565
This is an interesting read.
"Ahmedabad-based company offers you a 10% per month return on your investments!"
V-
Here in USA my salary is 6% higher to what I made in 2002. No growth for the past 10 years.
IT salaries in US have dropped so much that Indian IT bodyshoppers like TCS and Infy want to hire local US folks and not even worry about visa issues.
If salaries in India go even close to US salries ll outsourcing will stop and would be sent to Malaysia or Brazil.
All the party with salary hikes, RE prices and stocks is almost over. Next few years would be drops everywhere and reality coming to minds of high flying people.
High salaries but still living in a hut with fecal matter
Anon at 11.37
"Ahmedabad-based company offers you a 10% per month return on your investments!"
This is too good to be true. Read the article, he says he gets tips from stock traders (i.e. insider trading) this is a huge ponzi scheme designed to fool the ignorant. I hope that Indian CBI investigates him and lock him up next to A. Raja.
to anon above:
Yeah, I know it's a get rich quick scheme.
@anon 11.37
This is not even a ponzi scheme, it is straight forward fraud.
These tipsters take your money and vanish after giving you a few (probably wrong) F and O tips
just wait till march of next year
and all of u will be surprised with the real estate collapse.RE bubble IS IN ITS LAST STAGE,REAL ESTATE PRICES HAVE ZOOMED.PEOPLE SHOULD TAKE THEIR MONEY OUT OF REAL ESTATE RUN.speculation no here r the facts:
The Outstanding Public Debt(U.S.A)as of 22 Feb 2011 at 12:44:36 PM GMT is
$14,142,663,342,962.10
ACTUAL DEBT(NOT REPORTED BY GOVERNMENT)
55,000,000,000,000(INCREASING BY THE SECOND,SOME SAY IS EVEN HIGHER HERE IS THE LINK http://www.usdebtclock.org/)
DEBT TO GDP FIGURE IN INDIA HIGHER THAN 55%
INFLATION HIGHER THAN 15%
ONLY MEANS FURTHER INTEREST RATE HIKE(7 TIMES RAISED IN ONE YEAR)
BLACK MARKET MONEY IS THE EYE OF THE STORM(2% PER MONTH INTEREST ON HAWALA MONEY)
BUILDERS APPROACHING MARWARIS/TRADITIONAL LENDERS AS A MEASURE OF LAST RESORT.
WORLD ECONOMY DITCHING DOLLAR AS IT LOSES VALUE(CHINA RUSSIA SIGN DEAL TO TRADE OIL IN REGIONAL CURRENCY,NOT REPORTED IN MEDIA)
CIA MANEUVERING MIDDLE EAST CRISIS TO TAKE ATTENTION OFF THE IMPENDING FINANCIAL COLLAPSE IN U.S
HOUSE PRICES DOWN MORE THAN 18% ON AVERAGE IN U.S(LINK
http://finance.yahoo.com/tech-ticker/article/53094/U.S.-House-Price-Decline-Could-Be-Worse-than-Great-Depression?tickers=^gspc,fre,fnm)
if anything has clicked in anyones mind
caveat emptor
or invest TONS OF MONEY IN RE AS THE MEDIA,RE BLOGGERS,BUILDERS TELL YA TO.................
---Anonymous 5:12
Blah Blah Blah Blah Blah Blah Blah Blah......
Fed up reading this rhetoric copied from economic times and other newspapers. Just venture in the market yourself and see what is happening. If things were so gloomy, builders would have tried all their best to unload their inventory.
Just this month, a builder after great negotiations agreed to sell a 1 b/r apartment in jogeshwari at 8500/rs rate. When approached with the black portion (50%), he started to sing a different tune. His partner doesnt agree for less than 10,000 but he could, because of the commitment, would make it 9750/- . I had to return home disappointed.
If you gauge the market, you would realise that situation is not in our favor. There are buyers with cash money and builders know it
Your comments remind me of guys discussing about Ambani's fortune and predicting that they would be bankrupt soon
if everyone becomes ambani, then who is going to do the work. no one in india wants to do work. you can't get educated without lots of money. those with education have enough money to not work and instead focus most of time on investing.
so how will india make further progess.
I make 6 figures in USD (>45K INR) per year and have to really make effort to afford 250K USD house (1.12 crores INR) with low interest rates (< 5.5%).
how the heck people in mumbai can afford 1.5 crores INR houses with average income of 6L INR and interest rate > 10%.
I feel future buyers are screwed... no let me take that back, future quality of life is screwed.
Time for Indians to join below bandwagon of
Black money
Corruption
High cost of service and material
Low quality of life
There is no free lunch sir.
@Anon above
The average income in mumbai is 3L per household. However, those some employed in govt offices, courts, police and excise depts get millions in bribes. These are the guys who buy/invest in real estate, mostly bought using a relative to circumvent scrutiny. An average police inspecor or a court magistrate makes aroud 10-20 l per month.
This sort of deals has created a underground economy and those dont have access to corruption suffer
And people who are giving bribes are also stealing from someone. Those giving bribes are also equally involved and are far richer in terms oon stolen money.
What really pisses me off is that these thieves don't even realise that their Karma is going to bite in their arse sooner or later. I saw a movie called "knock out" and is done nicely.
I can only say that people stealing today will have to pay it later in their lives either by losing thier health early or dying early or losing a loved onbe or serious health/mental issues in thier families. So, think before you steal. Think about India and Indians.
Everyone cannot make 10-20L bribes per month.
Only a few.
Rest will make 20-30,000 per month in bribes only.
That is all economy can afford in bribes. Even for bribes there is supply and demand
For every corruption, bribe, everyone is paying directly or indirectly.
Also it hard to believe that number of people buying RE are all corrupt and have earnings from bribe. Therefore average earning is still less than 6Lacs. So where is the affordability?
India is a big mess, yes, there is underlying lied, unreported, unaccounted, false, make believe economy. If everything was on paper accounted, inflation would be through the sky. As long as black money (unaccounted money) is not brought to the book, boom will continue.
Police corrupt!!!! Magistrate corrupt!!!! Government corrupt!!!
What we are reading in newspapers about booming India is all hoax. It means that all the growth story is all about few people that are corrupt to the core!
Disgusted and ashamed to be an Indian
@Frustrated said..."Fed up reading this rhetoric copied from economic times and other newspapers".where did u read cia maneuvering middle east crisis,USA bankrupt bcoz it FAILS to report its off balance sheet liabilities,ponzi scheme financing and speaking of ambani.mukesh ambani is a member of COUNCIL OF FOREIGN RELATIONS(where they plan rape and plunder of nations)tells about ur ignorance,narrow minded approach.EVERY BALL THAT GOES PAST JUPITER COMES BACK TO HELL.
To the person who wrote the above comments.
Are you on crack or just high on marijuana. I believe that both lead to hallucinations
Take care
whats news on RE today? Is everything crashing, slowing or still in lalaa land.
Beware of Scams!!
Madhwani's in association with south indian gangsters as protectors, are trying to con people by offering luxury flats (only on drawing papers and brochures )for 30-40% below market rates. If you get entrapped, you will have to cough up the entire amout but wont get anything in return at all. Courts, Police or press wont be able to help you as the projects are backed by very powerful gangster living abroad. Their main intention is just to find out who has the money, and then extort it
Good Luck
continued-
A couple of investors attracted by this scam, paid 3% booking fees have been living in constant fear. Already they are made to cough up 50% of the proposed final price. They just hold a receipt and some fake documents/drawings/maps.
Do not get into a situation like this as there is no way out. These dogs are just want the smell of blood like blood hounds.
fewer and fewer people are posting here.
It's obvious a house that cost 10 lac 5 years ago, is now worth 1 crore. next year it will be worth 2 crore. In 5 years, it will be worth 10 crore. India is the number one economy in the world. everyone is richest there. even your servant is a millionaire.
India Rated 'Extreme Risk' Economy for Investors
http://news.webindia123.com/news/articles/Business/20110225/1696730.html
This has been floating around in international business circles, but yet we see an influx of FDI. Now, the question is who are the investors
The answer is simple. These are our own politicians and industrialists who use FDI for MONEY LAUNDERING.
India is the most corrupt in the world and will remain so. My apologies to 'Nationalists' but fact is a fact
Cheating through non violence is our national motto
Jai Hind
@Mahatma,
Cheating is not unique to Indians. Most Indians are honest and law abiding. Few people do wrong things does not mean that all Indians are scoundrels.
From your nick, I guess that you are a RSS rascal who took the credit of assassinating the very person responsible for our independence.
No one compels anyone to buy real estate. So, dont cry foul if the prices are high. If you get cheated, remember, you are also responsible for falling for a cheap con trick
Take care
Anon above:
I would agree with Mahatma that most people are cheats, if not all. Many people in India are into get rich activities and cheating especially in the metro areas. Village people are still nice and helpful. It is the whole culture of "show-off" that we live in. People want to get rich to quickly show thier friends and relatives how good and important they are, by hook/crook methods. Show-off activities include:
--How big my car is?
--I've so many flats.
--I'm from IIT/IIM.
--I'm an engineer/MBA.
--My salary package is $$$.
--I travel to US/EU.
--Family income is very high.
--We have maids for everything.
--We have all latest phones/electronics.
--We travel to Swiss for vacation.
--My wedding was the best in the "biradri".
--My net worth is 5 crore.
--My kids go to expensive schools.
--My kids eat at McDonalds.
--We know ministers/IAS/IPS.
--We get invited to all big places.
--ETc...etc....etc...
Anon above:
Agree with you. I live in US and people do show off there too but in India it is EXTREME. In US we people don't even care or ask where you work, anytime I go to India, first thing people ask is where you work and tumhari aukaat kya hai. Baat karne layak ho ya nahin. Even relatives were the same way. To much showoff in India. Very hollow society.
I too tend to agree with Mahatma. Cheating is Indian national pastime.
Those who get cheated are victims of con tricks, not necessarily deserve to be treated for not having mental agility equal or more than that of cheaters.
The problem with our society is glorifying wealth even if it is accumulated by cheating. Indian culture is a slave culture and most indians can not function without bosses, masters, religious leaders etc
I called an old class mate in India after like 15 years being away to US. We were excited to talk and later he asks me what car I drive here in US? He said he recently bought a Honda Civic. I was surprised at the low level of thinking many Indians have. They just cannot get out of this nonsense.
All their lives revolve around telling people how good, important and well off they are.
I recently traveled to Mumbai from US for the first and last time. The worst of our society in USA would be middle class in India. The slums on the outskirts of Mumbai are gray. Everything is coated with a patina of gray dust, even the trees are gray. You have people getting water to cook with from a trickle of a stream that some guy is pissing in while another is washing clothes. Your worst nightmare of filth wouldn’t even come close to the reality of third world poverty. The waterways (rivers) are a combination sewer, potable water source, recreation spot, & laundromat.
When traveling in India, you don’t drive, you hire a car and driver. Notice the lack of side view mirrors. That’s how close the drivers pass other cars. For an American or European, it’s a death dance.
You never have the window down. Going slowly or stopped, an arm can come in and rip you off in seconds.
You never look at someone outside directly in the eyes. Once you acknowledge that the person standing there exists, you’ll have a mob of beggars surrounding your car. The best thing to do is read a newspaper.
The saddest sight was a young female beggar, around 9 or 10 years old with a baby.
In Mumbai, the air is so foul that every morning, I’d take a clean handkerchief, douse with bottle
water, and tie around my face.
And people were mum about the RE prices in loud about the grocery prices. RE prices as I converted seem to be more than NY city. I wonder who is paying that much money to live in a shit hole.
--Mike
Mike,
With the influx of rural people, the slums in Mumbai are growing exponentially and just imagine the state of Mumbai in another 10 years. 80% of Mumbai's 20 million population defecates in the open.
This is a decaying city. It wont be long before other cities follow suit
enough of india bashing. india is still shining inspite! considering today's RE prices (with cash buyers) RE is shining we are richest country in the world. all developed countries will soon be left behind and have to learn what india is doing right.
bolo bharat mata ki...
...Luchha
you got the same chance of making money in real estate as you got chasing 338 runs in a world cup match. ok, i take that back. Bastards making millions and cant even defend 338. Anyways, you will see your cricketer buying homes and apartments for millions in the next few months, so dont worry about real estate crashing.
"In a country where more than 450 million people live in poverty, around 50 billionaires account for 20 per cent of India’s GDP and 80 per cent of stock market capitalisation".
This is why real estate will not crash. If they have billions and millions, they will not put in the stock market or the in the bank, but they will keep buying real estate.
Mike - F'off! good riddance & many tks for not turning back to so called filthy place. Pls ensure that you don't get an exposure to indian markets through any of the indirect channels as well. Mark
NRI - Readers, you may want to read this http://thedesimag.com/2011/02/21/top-seven-reasons-why-nris-should-not-buy-real-estate-in-india/
Mumbai: Rich orphan city of India
5% of people very rich
15% middle class
80% slum dwellers
All live in harmony in the shithole and boast mumbai's uniqueness, cosmopolitan nature, racial harmony etc etc
The fact is they dont know anything better
Some independent survey has the confirmation about more then 50 thousand unsold flats in mumbai.The reason,well no buyer ofcourse,and for major part of the sale was completed by investors who were awash with black money.
The rent yeild suggest that staying on lease is a much better financial option.Ofcourse the builders are sitting on huge debt coupled with unsold flats and most builders has to settle the due by end of this financial year,so government will be definately be offering sops,as the government is part of the builder nexus.Todays sop is case in point.
Sooner then later the investors will start feeling the pinch,with no rental income,high maintenance and with no buyers to book a profit,these people will no longer invest in flats,as a result builders will face shortage of investors as well as real buyers.
The result will be that real estate price will come crashing down,the real buyers will wait for more correction,and then the prices will hit about 50% down.Lands will then become more affordable and new generation of builders would go about redeveloping 75% of old societies in mumbai,these will cause excess in terms of demand,and certainly the prices would again be lower for a long time.
In Nutshell wait for a year,let the investors buy now and then buy it at half the price by next year.
If u have appetite for risk then sell your existing flat before april.
A huge fall in prices is imminent,google for facts,why realestate company shares are falling by the day?
Dream on and pass your dreams to gullible
Time to post a new article and continue with the ranting there ...
Anon above. Hope this time you get opportunity to be the first one to rant. ;-)
Beggar country and will remain as a beggar forever
Anon 2:56,
50% correction in real terms will happen but that will take 5-10 years. It won't happen in a year. In one year, you may be able to get a 20-25% decline at the best.
If you want to buy 50% down then wait for the day when no one is talking about real-estate at all. The day one starts talking of RE and everyone rune away. Today, you mention RE in office and immediately 10 people will gather to discuss it enthusiastically. At the real bottom, people will be disgusted at the mention of RE.
- V
There are 84000 unsold flats including both ready possession and under construction. whats more there should be around 40000+ rentable units held by investors. All of them attracting meagre yields. Add to this high property tax.
All of this in Mumbai Metro region. However people have staying power...so wait for 2011 for correction. If you need to buy start negotiating, most builders are relenting. I am negotiating a deal with a large builder who never negotiates....but I am getting a Rs.500psf drop in my price. Maybe I am lucky but its happening.
Anon above.
"but I am getting a Rs.500psf drop in my price. Maybe I am lucky but its happening."
So you consider yourself lucky for getting 10,000 psf instead of 10500 psf. Ya really lucky. Hope you got couple of flats with your 'lucky' deal.
As long as bottom layer of society is ready to compromise, ready to live in hutments, ready to live with culture of 10 people cramped in single flat, ready to shit and pee in public, ready to cheat and be corrupt, ready to be satisfied with whatever they have.. all this RE nonsense will continue.
You know I wonder autorickshaw driver charging Rs 10 what must be his calculated labor charge when he takes out cost of material (gas, maintainence, etc) and how can he afford to stay alive. It's a miracle!
Poor society should take their heads out of their ass and should lessons from middle east.
Yea, India is country of miracles and wonders.
Read below, this kind of activities will keep RE prices bloating up in India.
Mizo man has 39 wives, 94 children, 33 grandchildren:
http://in.news.yahoo.com/mizo-man-39-wives-94-children-33-grandchildren-20110220-022600-883.html
In current scenario,especially after 100 percent PDI freedom,companies are vying for space in IT face of India bangalore.Welworth City makes possible for middle-class indian family to go for an affordable housing in bangalore now.It really justifies the 100 percent return on investment wish of any investor.
Gayatri Aura Greater Noida
Gayatri Aura Greater Noida Gayatri Group will soon Launching it is New Residential project Gayatri Aura its Located in Sector 1 GH-11, Greater Noida .It enjoys seamless connectivity with all the major Locations of the City like DND CP.
Keywords-
Gayatri Aura Greater Noida
Contact Us-
D-67, sec-2
Noida
Phone No: +91-9582262434, 9899710254
URL-
http://www.gayatriaura.co.in/gayatri-Aura-greater-noida-features.html
Post a Comment