Sunday, June 24, 2012

Lux is up: realtors confident that housing prices will not dip

Another feeble attempt by the paid news media to sucker buyers into their trap 

If the Indian economy is booming Mumbai property goes up. 

If the Indian economy is slowing Mumbai property goes up. 

These morons think that Mumbaikars are lemmings. What is constant in Mumbai is the generation of black money. This could be responsible for the rise in property till now during boom times. However when everything is slow, black money generation too has to be slow. 

If existing investors have their black money stuck with builders, how can they take profits and invest in the next venture. I spoke to a broker who said, "Investor ka paisa atka hain, he is ready to discount the price" however the project is delayed so which person in the right mind will buy from the investor when the builder is running out of money. This is in Vile Parle.

I forsee this situation all over Mumbai. Its best to buy I keep repeating ready to move in or resales. This market is stuck in the muck for many years to come. Demand for housing will remain, the smart investor will bring cash to the table and take a discount. Anyone going for too good to be true deals will be slaughtered mercilessly by the brokers 

 Hindustan Times report 

 As the Indian economy slows down, the real estate sector, with its back to the wall, remain gung-ho that prices will not dip any time soon. 

 In a recent realty event in Mumbai organised by CII, top property developers aired confidence that prices in residential realty would remain high. “There is pressure on developers, but that is because of the delays by the state government,” said Sandeep Runwal, director, Runwal Group, a Mumbai-based developer. “The delays are affecting the prices as it would only increase the cost for developers.” And the costs are likely to be passed on to customers. 

 According to data compiled by international real estate consultants, about 60% of projects launched in metros fall in the luxury category. However, private investors seem to be taking a cautious approach, and are only going in for smaller projects with smaller tenure of investment. “We are treading cautiously and want that the project we invest in is priced conservatively,” said Ramesh Jogani, managing director, Indiareit, a private equity arm of the Piramal Group. 

“We are giving preference to smaller projects over bigger ones.” Commercial realty, however, is a different story, with rentals under pressure. “The situation has improved (recently) as the demand and supply currently match, but if supply increases, there would be a pressure on rentals in commercial real estate,” said Cherag Ramakrishnan, CEO, Equinox Realty, the real estate arm of Essar Group.