The global real estate
fund of Morgan Stanley, which was in talks with the Wadhwa Group to
invest about Rs 900-1,000 crore ($186 Million) in an office development
project in Mumbai, has now shelved its investment plans as the rupee’s
plunge has made the hedging cost for the entire deal too huge, The
Economic Times reported today.
The investment by Morgan Stanley Real Estate Investing (MSREI) was
proposed to be deployed in jointly developing 1.6 million square feet
office space in Mumbai’s financial hub Bandra Kurla Complex.
Mumbai-based Wadhwa Group had already begun construction of the project,
ONE BKC, which would consist of two office towers and is due to be
completed by 2014.
Are foreign investors shying from Indian realty?
Are foreign investors shying from Indian realty?
MSREI has invested about $850 million in Indian real estate, mainly in
residential projects, including $100 million to $125 million in a
housing project by Mumbai-based Sheth Developers, Reuters reported in
December 2011, and the ONE BKC project would have been its first
investment in commercial real estate.
“Returns that were arrived at in earlier negotiations between Morgan
Stanley and Wadhwa were shrinking even before concluding the deal,” one
of the people familiar with the deal told ET as the rupee has slipped 46
percent in the last two years, wiping out returns of several PE funds.
The pull out comes even as Wadhwa has been marketing ONE BKC as offering
office spaces designed to suit occupiers of all sizes. The company has
been using this as its USP by offering office spaces of as small as
1,000 square feet as it targets professionals like chartered
accountants and law firms.
“This deal is already very costly and there is high vacancy in BKC. Not
just the Wadhwa Group but even Godrej Properties has a huge office
complex there where absorption rates are very low. Add to the economic
gloom and a horrible hiring outlook… Post Lehman Brothers, commercial
real estate has been going South and BKC is largely a finance and
banking sector, which is under maximum pressure right now,” said Pankaj
Kapoor, MD at real estate research firm Liases Foras.
Data from property consultant CBRE shows Mumbai’s BKC is the eleventh
most expensive office market in the world. Clearly when there is a
slowdown and corporates are looking to cut costs, MNCs wouldn’t want to
shell out more as rent, which is why several corporates move out of
expensive offices in BKC to relocate at low-cost locations such as
Andheri East, Goregaon and even Parel.
In Mumbai, Johnson & Johnson took up 150,000 sq ft in Andheri East
moving from more expensive Worli while Franklin Templeton India moved
out of Wockhardt Towers in BKC and shifted to Indiabulls in Lower Parel,
where rentals are as low as Rs 125 a sq foot, and Volkswagen moved out
from Maker Maxcity where it was paying Rs 500 a square foot to
Andheri-Kurla road where rental is Rs 130 a square foot a month.
Knight Frank data also showed that bulk of office space transactions
during the fourth quarter of financial year 2013, took place in the
suburban business districts of Andheri and Goregaon.
“Andheri East and Goregaon East accounted for a massive 92% of the
transactions in Mumbai,” the report said.
A report by a Cushman & Wakefield says office relocations and
consolidation of space have more than doubled in the first half of 2013
against last year and companies have managed to reduce their rents by
25-30 percent.
In fact, property consulting firm Knight Frank points out that while the
rental value ranges between Rs 200 and Rs 350 in BKC, it is any where
between Rs 125 and Rs 190 a square feet in Central Mumbai (Lower Parel,
Dadar, Prabhadevi) and between Rs 50-Rs 100 in Andheri, Josgehwari,
Gorgaon and Malad.
Moreover, sluggish leasing in business districts and new supply led to
vacancy levels rising in office spaces. Mumbai saw a 10 percent decline
in office demand in the first half of the year due to subdued economic
conditions at domestic as well as international levels, the Cushman
report said.
Read more at: http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article
http://www.firstpost.com/business/realtors-bank-on-freebies-festival-sales-but-rule-out-price-cuts-1141771.html Read more at: http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article
via
Foreigners dumping realty? Morgan Stanley pulls out of major Mumbai project
Sep 27, 2013
The global real estate fund of Morgan Stanley, which was
in talks with the Wadhwa Group to invest about Rs 900-1,000 crore ($186
Million) in an office development project in Mumbai, has now shelved its
investment plans as the rupee's plunge has made the hedging cost for
the entire deal too huge, The Economic Times reported today.
The investment by Morgan Stanley Real Estate Investing (MSREI) was proposed to be deployed in jointly developing 1.6 million square feet office space in Mumbai's financial hub Bandra Kurla Complex.
Mumbai-based Wadhwa Group had already begun construction of the project, ONE BKC, which would consist of two office towers and is due to be completed by 2014.
"Returns that were arrived at in earlier negotiations between Morgan Stanley and Wadhwa were shrinking even before concluding the deal," one of the people familiar with the deal told ET as the rupee has slipped 46 percent in the last two years, wiping out returns of several PE funds.
The investment by Morgan Stanley Real Estate Investing (MSREI) was proposed to be deployed in jointly developing 1.6 million square feet office space in Mumbai's financial hub Bandra Kurla Complex.
Mumbai-based Wadhwa Group had already begun construction of the project, ONE BKC, which would consist of two office towers and is due to be completed by 2014.
]
Are foreign investors shying from Indian realty?
MSREI has invested about $850 million in Indian real estate, mainly in
residential projects, including $100 million to $125 million in a
housing project by Mumbai-based Sheth Developers, Reuters reported in
December 2011, and the ONE BKC project would have been its first
investment in commercial real estate."Returns that were arrived at in earlier negotiations between Morgan Stanley and Wadhwa were shrinking even before concluding the deal," one of the people familiar with the deal told ET as the rupee has slipped 46 percent in the last two years, wiping out returns of several PE funds.
via
Why real estate is a landmine of troubles for NRI investors
Sep 30, 2013
By Om Ahuja
The global capital and currency markets have been volatile for last the few months, also triggering serious turbulence in the rupee. Current account deficit and the fact that foreign institutional investors are selling heavily in the Indian bond market have been the key triggers for the rupee's repeated depreciation. Factors such as negative export and industrial growth have triggered even more uncertainty, specifically in the currency trend pattern.
Will The Rupee Depreciate Further?
The Central Government has passed the Food Security Bill, which effectively increases subsidy for the nation. The fact that the Lok Shabha elections will be held in in 2014 may be cause for more of such populist measures - nevertheless, the country's overall financial status does not look very exciting right now. We may continue to see volatility over the mid term. Moves such as importing of fuel would further hurt the economy.
NRIs And Real Estate
When it comes to Indian real estate, NRIs take centre-stage when the rupee depreciates. The foreign exchange that they tend to funnel into the sector increases significantly when the rupee slides. In times of rupee volatility, banks institutions and developers tend to announce various schemes aimed at attracting NRIs. At the same time, NRIs are also attracted to the higher interest rates on NRE (Non-Resident External) and FCNR (Foreign Currency Non-Resident) deposits, as the standalone rupee returns look quite lucrative to them.
The global capital and currency markets have been volatile for last the few months, also triggering serious turbulence in the rupee. Current account deficit and the fact that foreign institutional investors are selling heavily in the Indian bond market have been the key triggers for the rupee's repeated depreciation. Factors such as negative export and industrial growth have triggered even more uncertainty, specifically in the currency trend pattern.
Will The Rupee Depreciate Further?
The Central Government has passed the Food Security Bill, which effectively increases subsidy for the nation. The fact that the Lok Shabha elections will be held in in 2014 may be cause for more of such populist measures - nevertheless, the country's overall financial status does not look very exciting right now. We may continue to see volatility over the mid term. Moves such as importing of fuel would further hurt the economy.
NRIs And Real Estate
When it comes to Indian real estate, NRIs take centre-stage when the rupee depreciates. The foreign exchange that they tend to funnel into the sector increases significantly when the rupee slides. In times of rupee volatility, banks institutions and developers tend to announce various schemes aimed at attracting NRIs. At the same time, NRIs are also attracted to the higher interest rates on NRE (Non-Resident External) and FCNR (Foreign Currency Non-Resident) deposits, as the standalone rupee returns look quite lucrative to them.
]
Continue here -
Om Ahuja is CEO - Residential Services, Jones Lang LaSalle India
via
Realtors bank on freebies, festival sales but rule out price cuts
Sep 30, 2013
Realty developers are hopeful of clearing a large portion
of their inventory pile-up during this festive season by luring in
buyers with freebies and
discounts, even as they sit tight on declared prices, said industry experts.
"Higher interests and the overall slowdown has led to a significant build-up of unsold units with developers in most of the major realty markets over the past few quarters, adversely affecting cash flow and impacting new project launches," said KPMG India partner Neeraj Bansal.
Further, RBI's stringent directives like banning the 80:20 scheme is expected to make things more difficult for developers, he said.
However, industry watchers are not expecting any price correction during the period.
"We don't expect any price correction now. Most projects have maintained the price levels or in some cases gone up marginally. But since they have already been factored in the slowdown, they will cautiously plan their sales," PwC India associate director Bhairav Dalal said.
Developers are likely to attract buyers through several discount schemes/gifts with most common being gold coins, cash-back on monthly rentals, customisation, free parking and club facility, zero brokerage, upfront cash discounts among others.
According to realty portal Magicbricks, developers in metros like Mumbai, Delhi-NCR, Bangalore, Kolkata, Pune, Chennai and Hyderabad have already announced various freebies.
"Offering such innovative schemes is most likely to result in higher enquiries and footfalls, which coupled with festive offerings, may help generate decent sales," Bansal said.
courtesy - PTI
discounts, even as they sit tight on declared prices, said industry experts.
"Higher interests and the overall slowdown has led to a significant build-up of unsold units with developers in most of the major realty markets over the past few quarters, adversely affecting cash flow and impacting new project launches," said KPMG India partner Neeraj Bansal.
Further, RBI's stringent directives like banning the 80:20 scheme is expected to make things more difficult for developers, he said.
]
Reuters
The September-December period witnesses maximum launches and publicity of real estate projects.However, industry watchers are not expecting any price correction during the period.
"We don't expect any price correction now. Most projects have maintained the price levels or in some cases gone up marginally. But since they have already been factored in the slowdown, they will cautiously plan their sales," PwC India associate director Bhairav Dalal said.
Developers are likely to attract buyers through several discount schemes/gifts with most common being gold coins, cash-back on monthly rentals, customisation, free parking and club facility, zero brokerage, upfront cash discounts among others.
According to realty portal Magicbricks, developers in metros like Mumbai, Delhi-NCR, Bangalore, Kolkata, Pune, Chennai and Hyderabad have already announced various freebies.
"Offering such innovative schemes is most likely to result in higher enquiries and footfalls, which coupled with festive offerings, may help generate decent sales," Bansal said.
courtesy - PTI
Foreigners dumping realty? Morgan Stanley pulls out of major Mumbai project
Read more at: http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article
Read more at: http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article
The global real estate
fund of Morgan Stanley, which was in talks with the Wadhwa Group to
invest about Rs 900-1,000 crore ($186 Million) in an office development
project in Mumbai, has now shelved its investment plans as the rupee’s
plunge has made the hedging cost for the entire deal too huge, The
Economic Times reported today.
The investment by Morgan Stanley Real Estate Investing (MSREI) was
proposed to be deployed in jointly developing 1.6 million square feet
office space in Mumbai’s financial hub Bandra Kurla Complex.
Mumbai-based Wadhwa Group had already begun construction of the project,
ONE BKC, which would consist of two office towers and is due to be
completed by 2014.
Are foreign investors shying from Indian realty?
Are foreign investors shying from Indian realty?
MSREI has invested about $850 million in Indian real estate, mainly in
residential projects, including $100 million to $125 million in a
housing project by Mumbai-based Sheth Developers, Reuters reported in
December 2011, and the ONE BKC project would have been its first
investment in commercial real estate.
“Returns that were arrived at in earlier negotiations between Morgan
Stanley and Wadhwa were shrinking even before concluding the deal,” one
of the people familiar with the deal told ET as the rupee has slipped 46
percent in the last two years, wiping out returns of several PE funds.
The pull out comes even as Wadhwa has been marketing ONE BKC as offering
office spaces designed to suit occupiers of all sizes. The company has
been using this as its USP by offering office spaces of as small as
1,000 square feet as it targets professionals like chartered
accountants and law firms.
“This deal is already very costly and there is high vacancy in BKC. Not
just the Wadhwa Group but even Godrej Properties has a huge office
complex there where absorption rates are very low. Add to the economic
gloom and a horrible hiring outlook… Post Lehman Brothers, commercial
real estate has been going South and BKC is largely a finance and
banking sector, which is under maximum pressure right now,” said Pankaj
Kapoor, MD at real estate research firm Liases Foras.
Data from property consultant CBRE shows Mumbai’s BKC is the eleventh
most expensive office market in the world. Clearly when there is a
slowdown and corporates are looking to cut costs, MNCs wouldn’t want to
shell out more as rent, which is why several corporates move out of
expensive offices in BKC to relocate at low-cost locations such as
Andheri East, Goregaon and even Parel.
In Mumbai, Johnson & Johnson took up 150,000 sq ft in Andheri East
moving from more expensive Worli while Franklin Templeton India moved
out of Wockhardt Towers in BKC and shifted to Indiabulls in Lower Parel,
where rentals are as low as Rs 125 a sq foot, and Volkswagen moved out
from Maker Maxcity where it was paying Rs 500 a square foot to
Andheri-Kurla road where rental is Rs 130 a square foot a month.
Knight Frank data also showed that bulk of office space transactions
during the fourth quarter of financial year 2013, took place in the
suburban business districts of Andheri and Goregaon.
“Andheri East and Goregaon East accounted for a massive 92% of the
transactions in Mumbai,” the report said.
A report by a Cushman & Wakefield says office relocations and
consolidation of space have more than doubled in the first half of 2013
against last year and companies have managed to reduce their rents by
25-30 percent.
In fact, property consulting firm Knight Frank points out that while the
rental value ranges between Rs 200 and Rs 350 in BKC, it is any where
between Rs 125 and Rs 190 a square feet in Central Mumbai (Lower Parel,
Dadar, Prabhadevi) and between Rs 50-Rs 100 in Andheri, Josgehwari,
Gorgaon and Malad.
Moreover, sluggish leasing in business districts and new supply led to
vacancy levels rising in office spaces. Mumbai saw a 10 percent decline
in office demand in the first half of the year due to subdued economic
conditions at domestic as well as international levels, the Cushman
report said.
Read more at: http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article
Read more at: http://www.firstpost.com/business/foreigners-dumping-realty-morgan-stanley-pulls-out-of-rs-1000-cr-mumbai-investment-1137019.html?utm_source=ref_article
925 comments:
«Oldest ‹Older 201 – 400 of 925 Newer› Newest»Retail inflation at 11.5%, with polls around the corner RBI has no choice but to raise interest rates, expect some correction in property prices, inventories to rise further
Its high time for a new post.
Its been almost 2 months.
Owner please take note.
It is provides best way to buy luxury residential and commercial properties in India and invest top real estate projects in Delhi/NCR etc.
Indian RE is toast big time now. The whole Indian economy looks like a joke now. Totally based on printed money and foreign investments. In fact all world economies are a joke now days with their central banks printing to infinity.
Indian RE to correct by 40% in 2014. Do not buy if you have hard earned money. Thieves and black money folks can fuck themselves and keep buying as all the stolen black money component would be erased soon.
My advise to folks is to save their jobs as many jobs related to construction and banking will b ewiped off in 2014.
i think its good that foreign investors are leaving..so that indian investors can take their place..better for country..
Thanks for this complete information.
View More
New project in Noida Extension
Bears come out of hibernation.
Lot of bears(and bulls too) are already deluded by AAP campaigns in Delhi, they are busy supporting such scams like AAP on the Facebook.
Indians are a deluded bunch anyways. US spies on our military secrets, US refuses to co-operate with our investigating agencies by not handing over David Headley but what great issue does India find to start a diplomatic war with US? Ms. goody 2 shoes, Devyani Khobargade who is known for providing false information and involved in Adarsh housing scam...
My advise to folks is to save their jobs as many jobs related to construction and banking will be wiped off in 2014.
If your prognostication materializes you will have to save your life, not just your job.
Construction in India is still pretty labor intensive and it is dominated by migrant single males between 15-40 years of age. If this demographic becomes jobless/penniless, then crime and violence around the cities which have been a hub for these jobs is bound to go up.
Those who live in the far flung areas of cities will bear the brunt.
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Thanks For Sharing This Great Post Dude
Plots in Hoskote
Very nicely written blog. It will surely be very helpful to readers and those who want to have a new address. Supertech Eco village offers fully furnished cost-effective apartments in Delhi/NCR.
but what great issue does India find to start a diplomatic war with US? Ms. goody 2 shoes, Devyani Khobargade who is known for providing false information and involved in Adarsh housing scam...
It's surprising how spineless folks have got woken up and I find it hard to believe, since on the previous several occasions where diplomats were insulted elsewhere in the world, Govt was mum.
I think they have woken up only after raj mata of the country was summoned by Uncle Sam in 1984 genocide case. This is something they would never tolerate !
http://timesofindia.indiatimes.com/india/1984-riots-case-US-court-asks-Sonia-Gandhi-to-respond-by-January-2/articleshow/27457247.cms?intenttarget=no
VIP & VVIPs being brought down to earth. It's about time.
Let's not forget the maid servant is also an Indian citizen. We all know how Jagriti Singh treated her servants and for how long. It may come as a huge shock to the Indian elite that in the US, the arresting officer does not give a damn when you say the cliché "jaante nahi mai kaun hun!" US law enforcement arrest celebrities, politicians and big-shot business men as matter of routine procedure...
Infact, my suspicion is that Devyani tried to be a smart ass and probably questioned the arresting officers by flashing her credentials ("jaante nahi mai kaun hun") which is guaranteed to not work in her favor in the US.
Tip for anyone who encounters a law enforcement in the US. Follow their orders and DO NOT disrespect them.
I've lived in US for 20+ years and have encountered law enforcement a handful of times but never once have I been ill treated. In fact, the experience has always been a positive one and left me with highest regards for the training and professionalism of US law enforcement.
Preet Bharara is the one going after her, and i am thinking he knows what he is doing. I will take his morals over her( she had some legal issue in India also).
Read in TOI that Infosys will be hiring 160K engineers next year. Seems slowdown is gone Economy starting to peak again
Read in TOI that Infosys will be hiring 160K engineers next year.
It is 16K not 160K. And 16K is a dull figure.
Robert Vadra is right, this is banana republic. The way the maid was treated, her passport revoked and an arrest warrant issued in India, expect this to only happen in third world. Response of Indian gov is childish.
Also met my CA who told prices in Delhi are down almost 30% now with very few deals happening.
QE taper started and no discussion here... where are all the pundits?
This blog is dead it seems...
// The way the maid was treated
I dont think any Indian in the right mind will hire someone from India and pay them 60K dollars per year. Do you think the motels that employ desis pay them 60K per year. Even TCS/Infosys follow these dubious practices
QE taper started and no discussion here
You were driving a car at 85 miles/hr and now you are driving at 75 miles/hr, any difference ? Not much and not worthy of discussion. I don't think US will stop printing money in the long run.
"QE taper started and no discussion here... where are all the pundits?
This blog is dead it seems..."
The pundits and other related idiots were dead wrong and have been dead wrong for nearly a decade now.
The fact is that there is no bubble. No crash. No nothing. Indian RE is, all said and done, fairly valued. This is the verdict of the markets and we MUST accept it.
It's all over. Go home. And will the last person who leaves this blog please switch off the lights.
Thank you.
"The fact is that there is no bubble. No crash. No nothing. Indian RE is, all said and done, fairly valued."
explain following:
http://www.firstpost.com/business/mumbais-unsold-flats-at-all-time-high-of-1-3-lakh-all-you-need-to-know-1250805.html
The simple reason for so many unsold flats is that the prices are gone beyond working class people and even the flippers started to realise that they will be the one with the rotton fruits if they dont get out.
Still lot of money in India
Tickets for Dhoom priced at 1000
PC chopra being paid 6 crores for 7 minutes
Still far from slowdown
The fact is that there is no bubble. No crash. No nothing.
Come to Delhi and I show you prices of floors are down 30% in almost all areas with very few deals happening. My CA is urging me to buy one and is saying just tell him the configuration and he will show lot of choices that was never available before. Prices are back to 2010 levels in many areas he says.
This is a special blog. Effective clean and nice realestate blogs. I will be coming back in a bit, thanks for the great blog.
Real estate brokers in south Florida
"It's all over. Go home. And will the last person who leaves this blog please switch off the lights."
Yes, we will do that. Glad to know you are leaving. Goodbye and have a good life with your real estate lol. :)
Good Riddance. He is gone.
Now rents start rising in super prime real estate :
http://articles.economictimes.indiatimes.com/2013-12-20/news/45417899_1_lutyens-bungalow-most-bungalows-rs-40-lakh
Looks like Lutyens rents are ahead of Palo Alto :
http://www.zillow.com/homes/for_rent/Palo-Alto-CA/26374_rid/paymentd_sort/37.540222,-121.915283,37.223221,-122.355423_rect/10_zm/
I enjoy this commentary. Thanks for allowing it leading in its own spot. I get uneasy when I see angry righteous mobs hurrying to open bags of feathers and burbly the tar. So frequently we read only a small part of the write up and instead we let wrath do the thinking for us.
Flats at Hyderabad
Lots of money coming into RE from abroad. Also IT sector improving tremendously and job cuts fear gone. Billion dollar deals from Obama health care to come to India starting next year
http://in.reuters.com/article/2013/12/23/india-qatar-kotak-idINDEE9BM05R20131223
RE seems to be on way up. Prices will soon shoot up 25%
http://www.indianexpress.com/news/realtors-hopeful-say-slump-in-real-estate-market-will-end-soon/1210914/
More proof prices are going to rise
Speaking to Express, consultant Jones Lang LaSalle residential services CEO Om Ahuja said, “ Considering that the IT sector is doing well, the rupee has depreciated, we expect a price rise next year in the IT-centric cities of Bangalore, Hyderabad, Chennai, Pune and Noida”.
http://www.newindianexpress.com/business/news/Residential-Prices-Set-to-Look-Northward-Next-Year/2013/12/24/article1961733.ece
So, will these inflows bring back affordability in middle classes hand?
"So, will these inflows bring back affordability in middle classes hand?"
Nope, you idiots are screwed. We (the land-owning class) told you time and time again "Buy now or forever be left out". We told you so in 2003, 2006 and even in 2009. You idiots didn't bother to listen. Instead you listened to the idiots on this site who were screaming "Bubble! Bubble!" and now are so embarrassed they won't even show their faces on this site anymore. This site is deader than a turkey in Thanksgiving.
Now reap the consequences of your actions. And behave. If you are good, we, the wealthy, might, just might, throw you a few crumbs of our table to keep you placated.
What a bunch of morons.
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its because the realtors have got backup from politicians..
"Buy now or forever be left out"
Now its time for you idiot to buy or be left out forever. Prices are 30% down in Delhi, go and buy if you have balls !
"Now its time for you idiot to buy or be left out forever. Prices are 30% down in Delhi, go and buy if you have balls !"
This is only for high-end properties (of 10 Crores or more). Your average 2BHK flat or house price hasn't budged.
Your average 2BHK flat or house price hasn't budged.
Everything has fallen. The floors in Rohini which were quoting at 2.4 cr one year ago are not finding a buyer for 1.8 cr. Water seeks its own level remember - it can't happen that top end properties across the board see correction while the bottom ones are immune.
"The floors in Rohini which were quoting at 2.4 cr one year ago are not finding a buyer for 1.8 cr. "
What difference does it make? 1.8 Crores is around a quarter million dollars.
Do you have a quarter million dollars (US$250,000)?
Anon @ 1:25
I can sense frustration in your words dear. You dont seem to digest the fact that music has stopped and you (the wealthy class) is left holding the bag :)
Now stop thumping your chest and face the reality.
For the people who're being happy on the blog being dead need to fear more now. Remember, unexpected happens when there is least possibility of its happening. So, time to go out and find buyers else the happiness won't last long.
Now the real estate deals are not at all happening. Now whatever price is quoting in the market, still I would say the if at all the deals are happening, then the seller is intelligent and any time when the sinking feeling come into the market RE market will crash further from here.
Real estate brokers and crooks are expecting divine interventiona dn thinks Narendra modi has some magic. Raghuram Rajan is sucked into the system and become Chidambaram's stooge and doing his duty to pump up the bubble further.
But second rung cities from Tamilnadu is totally collapsed in terms of RE deals. Now all are waiting for some sort of trigger which comes as 'emperor is naked' moment...
Will come soon.
Do you have a quarter million dollars (US$250,000)
Yes I do have but all white ! My CA knows this and he keeps on convincing me to get a good deal but it just doesn't gets into his head that even 250K is a lot of money for that shitty place. He is heavily invested into RE and thinks this is all temporary !
If you have US$250,000 you can buy a ready apartment in a well to do location and then wait for a few years and double your money. No other avenues give you high returns in India
"If you have US$250,000 you can buy a ready apartment in a well to do location and then wait for a few years and double your money. No other avenues give you high returns in India"
I would like to buy a similar property and double my investment within a few years based on your advice. Let me know if there are particular properties which can give you these returns. Post it here so others can know and buy too.
Also post your name and telephone number along with your post.
// I would like to buy a similar property and double my investment within a few years based on your advice.
My advice is to look around for a property in a decent neighbourhood and hold on to it for few years. You will sure get double money in RE
RE has been stagnant in large parts of the country for the past year, bank FD has given better returns, I know of three projects in Bangalore where prices have appreciated by less than 5% over the last one year and then there's the problem of zero cash flow in RE.
Well written article
http://timesofindia.indiatimes.com/tech/tech-news/software-services/Indian-IT-Wake-up-and-smell-the-opportunity/articleshow/28098432.cms
http://www.thehindu.com/business/Industry/rs-7700-cr-worth-realty-npas-up-for-sale-report/article5523313.ece
Indicating the worsening stress on the realty sector, an estimated Rs 7,700 crore worth of commercial and residential properties loans are up for sale, according to an industry report.
Data compiled by NPAsource.com, a portal that focuses on resolution of stressed assets, shows that there are around 2,200 units in the commercial category and nearly 11,000 units in the residential segment funded by banks and other financial institutions and valued at over Rs 7,700 crore, which have turned NPAs and are on the block.
@aam aadmi
Please change your name ASAP because now it stands for an emerging fraud party(AAP) destined to ruin India by fooling people.
I am an AAP supporter. Curious to know why you call it fraud party?
I am an AAP supporter. Curious to know why you call it fraud party?
Coz, it was started by an inefficient, corrupt, socialist Indian and not by some efficient, professional, capitalist American
I am an AAP supporter. Curious to know why you call it fraud party?
Nothing new about you, most of the educated elite have been hypnotised which is mainly due to Identity politics mindset in India. People think they are going to bring down inflation by controlling corruption. 1. Inflation is not the result of corruption and 2. Corruption can never be stopped in India and they seem to be misleading the public to carry out Socialist reforms and their own hidden agenda in the name of controlling corruption.
And this topic has deep connection with this blog, namely the RE Bubble. Its clear people are angry about price rise, and when we talk about inflation, it is mostly house prices and rents. And in times of stagflation, a new avatar called Kejriwal comes and teaches people that the rich and elite are cause of inflation, makes some hit and run allegations, and becomes popular.
Incidentally, the same NRIs who have invested in Indian real estate have dug a grave for themselves and there real estate investments in this country. Either this guy stops Modi from coming to power or in the best case comes to power. In both cases, there real estate investments are at risk.
Slight correction above,
Ironically, the same NRIs who have invested in Indian real estate have dug a grave for themselves by funding AAP campaign and there real estate investments in this country.
RE will go up this year.
Lots of jobs and 20% pay hikes
http://timesofindia.indiatimes.com/business/india-business/New-Year-cheer-8-5-lakh-new-jobs-20-pay-hike-experts-say/articleshow/28230260.cms
20% pay hikes to the best performers, that means you can eliminate 99% of the public.
AAP,BJP,Congress does not matter, the fraud and corruption is too deep and it cannot be fixed. Some of these politicians have good intentions, but the country has 1.2 billion people, with a growing young population, corrupted humans from top to bottom in every state and limited land supply.
IF you could move Indian population to the US/Russia, then property price will come back to reality.
// 20% pay hikes to the best performers, that means you can eliminate 99% of the public.
Indians are hardworking people so a lot of people will get 20% hikes. 50% of workers in Microsoft are Indian so you get the picture of hardwork
@ above,
So what??
If I sweat it out day & night and get a 20% hike as a reward, why should I hand over that hard-earned money over to greedy zamindars (the RE owners & sellers). I don't understand why all these RE bastards (RE developers & their "consultants" & all related folks) 'predict' that RE price will grow up because IT sector seems likely to give good hike - do they expect that as soon as we get any hike we would go & donate everything to them, and not use it to enjoy ourselves (ex. foreign trip, or anything else which we always wanted but were a little short of money so far). They are ready to grab every naya paisa hike we get (and even more than that)!!
When ever I read such stupid predictions this is the picture I get: A child is eagerly unwrapping an ice cream & just as he is about to start eating it, a big bastard bully comes and snatches it from his hand. That's how I feel when I read such "IT might do well, so we are expecting good growth(??) in RE" BS story.
Yeah, it is true that wage hike (if it is across all sectors, not just IT) usually results in increase in the overall cost of living, but it usually a considerable time gap between the wage hike and cost-of-living hike & it happens slowly. But dreaming that a 20% hike in a few sectors will result in 20% or more hike in ONLY RE (which is already unaffordable & overvalued) itself! and that too right away! - that is like waiting in ambush & pouncing on you as you are coming home with the new salary in your purse and robbing your purse and everything else you have too.
Sara
^^^
IT people are earning in lakhs per month. With husband and wife the 20% hike means another lakh per month more in monthly income. All this new income goes into RE which is used as investment for future
@ above, you say
>> 20% hike means another lakh per month more in monthly income
That means the take home is 5lakh per month????? LOL!
Sara
..and IT people earn in lakhs per year, not per month. Only very senior folks earn close to 2 lakh per month (or perhaps some very niche companies may pay the same for not-so-senior people, but they hire very few)
// IT people earn in lakhs per year, not per month.
Sorry not in IT so not aware. My friend and his wife working in Infosys for 8 years say they together earn 3 lakhs per month.
"Sorry not in IT so not aware. My friend and his wife working in Infosys for 8 years say they together earn 3 lakhs per month"
so your friend earns 2.9 lakhs/m and his wife earns 10k/m?????
Guys my company is planning to relocate quite a few people in the India office and I am being asked to go back to Bangalore. I have never been to bangalore and never worked in India. Did MS and worked in US for 7 years. The pay packet is 13.5 lakhs per year and one time 50lakhs bonus/relocation. My wife does not work and I have one kid. Is this money sufficient to buy a home in bangalore and lead a decent middle class life.
@Above:
Think beyond money. You will definitely enjoy moving to India and money is not bad as well. Wait till you buy a flat as RE market is tanking all over India and you may be get good deals later this year.
". Is this money sufficient to buy a home in bangalore and lead a decent middle class life. "
Yes it is sufficient.
Just rent a house and live like a king. Your money will grow every year. Let it grow and one day RE will fall. You can get a good deal.
Whatever happens, DONT BUY. Spread the word. You will do them a big favor. Remember these words.
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13.5 lakhs per year and one time 50lakhs bonus/relocation
Don't accept the offer. I assume 50 lakh bonus would be taxable and so you get only 34.5 lakh in hand which will not be sufficient to buy quality house. And 13.5L is simply not enough to live a decent life in Bangalore. You would be living a much much better life in Redmond / Seattle, and your kid would be thankful to you if you choose to live in US forever.
Do you want to live with these people?
http://www.mid-day.com/news/2014/jan/050114-mumbai-unable-to-park-car-angry-dcp-roughs-up-businessman.htm
Was looking for some flats Navi Mumbai this weekend.
Looks like everyone has bought flats just to sell it higher to another buyer.
This buck will surely stop and the end wont be very pleasant as may holders are just pawns compared to big builders.
Don't accept the offer. I assume 50 lakh bonus would be taxable and so you get only 34.5 lakh in hand which will not be sufficient to buy quality house. And 13.5L is simply not enough to live a decent life in Bangalore. You would be living a much much better life in Redmond / Seattle, and your kid would be thankful to you if you choose to live in US forever.
Life is not just about having a comfortable existence. Beyond having the basics, food, clothing, shelter, transportation there are many other factors which can play a part in what one considers a fulfilling life.
Kids have to have a sense of identity. Bullying in US schools is very corrosive, and a person of a different ethnicity is an easy target. Another factor is when one gets old and kids move away, the social infrastructure for first generation immigrants is lacking.
The best time to move back to India when the kids are young, and the time can be used to build a good social infrastructure.
50 lac relocation bonus and a salary of 13.5 lacs. Sounds fishy to me. Maybe its a 5 lac relocation bonus
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@Above
Yea sounds fishy indeed. And this 13.5 is after tax or pre-tax ? Makes a world of difference.
13.5 take home is not enough IMO if you have a kid.
Don't accept the offer
Few Years back I have seen big shots of Indian origin in my company fired when they didn't accept offers to relocate to India. If you don't accept the offer, have a back up plan.
Recently, an entire team working on a successful product moved to a start up company in US and the whole team was re-hired in India and they are pretty good paying jobs. Those who have a negative opinion about Indian IT need to see the trend in front of you.
13.5 take home is not enough IMO if you have a kid
13.5 take home will be close to 20 CTC after taxes, variable pay and pf. So you are telling that whoever has a kid makes that much? Then why are people cribbing in the blog for RE costing 80L. Some things doesn't add up.
// 13.5 take home is not enough IMO if you have a kid
I live in Pune and never been to Bangalore. But his seems crazy that 13.5 laks take home is not sufficient for a single family. What do you guys spend on?
Sticking with the title of the blog,
the guy taking 13 lakhs home would need to spend more than half of that to pay a 80 lakh home (APR = 10%, 15 yr payment and 20% down payment assumed).
If 13 lakhs is considered high end salary, even this guy is somewhat priced out of Indian real estate.
13 lacs take home is really good. Salary is not less but when you look at RE prices it may seem less. The RE has to correct by more than 50%, so take the money and keep renting.
In a few years you can buy your dream home or even move to other opportunities within India or outside. Renting would give you that freedom.
// 13.5 take home is not enough IMO if you have a kid
I live in Pune and never been to Bangalore. But his seems crazy that 13.5 laks take home is not sufficient for a single family. What do you guys spend on?
Buddy, the min rent for a family 2BHK in a reasonable locality is upwards of 25 K. Schools are pretty expensive too. Nothing less than 75K per year. Including other expenses like milk, veggies, transport etc. 13.5 lac hardly suffices if you have to support a family
// Buddy, the min rent for a family
You sir are a big idiot. Even by your calculations the outlay comes to 4 lakhs max per year and you say support not possible with 13 lakhs
DLF have launched DLF Hyde Park Estate Plots, located in (Mullanpur,New Chandigarh).
13.5 take home will be close to 20 CTC after taxes
Sorry I wrote "take home" by mistake. I assumed 13.5 L is pre tax income. Sorry for the confusion. And I have an opinion that 13.5L pretax income is not good in Bangalore.
Anon with 13.5 lakh package:
I relocated to Bangalore 4 years ago and currently, my monthly expenses for a family of 4 with car+driver+maids+cook works out to 50k per month. If you rent, add another 30k pm. For two kids, add another 20k pm (minimum) for education expenses. So, total required cash = 1L per month, or 12LPA cash in hand. This assumes no savings, vacations etc.
If you buy the same flat, you will probably have an EMI of 70k pm. So, extra 40k pm, means you need to make about 5L extra per year.
If you rent and live a middle class life, you need 12LPA.
If you buy, you need 17LPA.
Both values are cash in hand. Bangalore is not cheap. That is why jobs are moving to Philippines.
Venky: 70k pm EMI is equal to 70L loan, which means that the apartment cost is 87.5L (assuming 20% down, 10% interest, 20 years loan). That sounds like a LOT of money! Do techies live in areas that have
3BHKs selling for 87.5L in Bangalore?
Looks like the bubble is bursting faster than previously thought especially in NCR region.
Many many flats for sale now. No buyers. RBI tightening on loans. NPAs soaring. Lacs of new flats coming to the market.
High end properties have already dropped 30-40%. Low end upto 2 crores are seeing 10-20% drops but would soon see bigger drops in the range of 40-50%.
Hopefully by election time, there would be some sanity.
// Both values are cash in hand. Bangalore is not cheap. That is why jobs are moving to Philippines
What you posted seem to be on the higher end. 20K per month for 2 kids is way lot. 25K seems reasonable for decent living and 10K for house rent
Just been to Bangalore two weeks ago.Cost of living indicated by Venky is spot on.House rent is about 25-30K for a 3bed flat in a decent area with facilities. If you need a driver,allow about 12k per month.School fees are roughly 10~15 k per month per kid
During my short stay in Bangalore,I found out from numerous news paper ads that there is plenty of 2/3 bed room flats available in ready to occupy state.They range from 45 lakhs to 70 lakhs .Many of these are low rise flats(4 or 5 storey) by small developers.Agents are willing to pick up and drop you off free to view the flats.Maybe some one from Bangalore can explain whether this surplus is being absorbed or just piling up in the market.
Suresh: Most of the 45L-70L flats in Bangalore are not worth occupying. Some are "bare shells", some have no water connection or legal documents. 80 to 90% of Bangalore localities have a garbage problem. This flats are not worth 10 Lakhs, their owners are living in lala land if they think their flats are worth anything!
Surplus is definitely piling up on the market. Flats are renting, but no one in their senses is buying right now.
This flats are not worth 10 Lakhs
To be fair, the cost of labour and construction has gone up. A 3 BHK 1500 Sqft cost easily 30L to construct. So, if a ready move in apartment is available with good quality in a decent locality near to work place for ~50L, it is a good deal to consider it in Bangalore.
Here is a simple calc
Cost of the Flat : 50L
Loan : 40L
EMI (10%) : 43k
Savings
Commute : 40k (@ 3.5k/month)
Rent : 216k (@ 18k/month)
Tax savings : 45k (@30% on 1.5L Interest)
Total Savings : 3L
Total EMI : 5.16L
So basically, by paying 18k/month more than what you are currently spending, you can own a flat in Bangalore. Of course, NCR or Mumbai may be much different.
Agree with Venky, the so called 40-50lakh apartments are not worth living in. who is going to take in added haplessness regarding overflowing garbage, polluted water supply, no electricity supply, innumerable visits to get gas connections, etc. 10 lakhs at the most. times are changing man.
GSM,
The only flaw in your argument is that you dont get any decent apartment for 50 lac in a good locality. It is any where between 75 lac and a crore, if you take into account proximity of schools, hospitals, etc. The differential per month is closer to 40k per month, if you take that into account.
IT people salary is going to increase by 20% this year
http://timesofindia.indiatimes.com/business/india-business/Switching-jobs-Expect-25-30-hike-this-year/articleshow/28610732.cms
Anon above: Please stop posting links to stories written by poor writers who have been told what exactly to write. The first line is a dead giveaway:
"Professionals looking to switch jobs this year can expect to get an average salary hike of around 25-30%, which is higher than what those switching jobs managed for themselves last year, according to estimates made by a recruitment firm."
"can expect to get" and "according to estimates made by a recruitment firm", when translated into plain English mean,"you kinda sorta might get a raise, speculates a job broker who does not want to be named. While we are at it, what the hell, let me pull a number out of my ass and say it is 25%"
The software/tech industry in Bangalore is bleeding buckets.
There is a hiring freeze in major MNCs, and college recruitments have nosedived. Really, really bad times are coming. If you switch jobs, there may not be a job for you, at least, in India. I say this as an insider.
"http://timesofindia.indiatimes.com/business/india-business/Switching-jobs-Expect-25-30-hike-this-year/articleshow/28610732.cms
"
I read this too. Maybe some fools for fall for it. It is a ploy to tell people everything is good and keep on buying real estate.
It can however backfire when employees do not get such hikes and then they refer to that news article and agitate.
Worst yet, they may leave their jobs and find a new one.. hahaha.
India is a land of fools. Amen
People literally worship shitmen like assram and his son while they go and rape everyone they can lay their hands on. Ignorance is bliss indeed.
Thanks Venky for the on the ground picture in Bangalore.Many of the ads looked a bit desperate to me (ie. quantifying the discount on the offer price etc.If the pile up continues,the banks will be in trouble and there is a good chance of a bank run in a year or two in India.Where to park the money safely now?
I say this as an insider
We have had economists, doomsday preppers, Gold bugs, trend analyzers telling so many things in the blog except that they have been proved wrong from 9 years!!
Thanks for the blog and information
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Venky:
just because you didnt get a 20% rise does not mean that people are not getting it. People (although a minute percent) ARE getting it if they are suitably qualified and if they are in demand. yes overall the situation remains dire, but the small percent (translates into a good number based on the total population) is earning more and at the fastest pace than ever before.
Emaar MGF is a real-estate developer based in India and has a portfolio of projects in several destinations in India, covering residential, commercial, and hospitality.
http://apps.washingtonpost.com/g/documents/world/us-v-devyani-khobragade-indictment/739/
read the indictment. what an image of India are we portraying.
// http://finance.yahoo.com/news/google-programmer-blew-off-500-155342560.html
There is a lot of money in India and US in software. Just because some of the morons on this forum dont ear that kind of money does not mean IT is dying
read the indictment
I wonder what work a maid would have for 16 hours. My maid finishes clothes and utensils and cleaning the house all by hand in 1 hour. And cooking might take 3 hours a day. Since the kids were school going, they was no need of baby sitting all day. And the maid was given a separate room with food. Shouldn't they be added to calculate min pay laws. Some things don't add up.
Alas, Indian Govt used the episode to get a positive image just before the election. Never saw media with reporting wrt Tejpal or corruption. Now that's some lateral thinking.
Just because some of the morons on this forum dont ear that kind of money does not mean IT is dying
When people know that they have taken bad decisions, and realize that the herd is not willing to follow them, they become abusive. I don't blame you. I must be a moron to make 45 LPA, and a bigger one to still not have bought any "wonderful" property in this "awesome" economic environment. What can I do, God did not bless me with the same I/Q that he has blessed you with.
Perhaps, to make up for my lack of investment sense, you could buy a second apartment for yourself, and pay it with the 20% raise you are expecting this year. Good luck!
Just because some of the morons on this forum dont ear that kind of money does not mean IT is dying
I personally know an NRI who works in Facebook makes 1 million dollar in salary (cash + stocks) per annum. And exactly 10 more friends of mine sitting in Menlo Park office of FB who make 150K and are unhappy. I would estimate there would be more than 100 Indian origin employees in the same office who would be unhappy with their salary envy this guy. What does it mean ? The majority of IT folks still do not get supernormal salaries. And BTW, this guy pays 55% in income taxes, 20000$ in property taxes every year. So even he can't save more than 250K per annum after getting over million. And if FB stock tanks, think how these normal supernormal salaries come down.
http://www.dailymail.co.uk/news/article-2536967/New-Jersey-residents-file-class-action-lawsuit-against-Christie-aide-two-former-port-authority-appointees-traffic-jams-late-work.html
when will this happen in bangalore?
>And if FB stock tanks, think how these normal supernormal salaries come down.
Coming soon. To a stock market near you :) Not just FB, but all the gimmicky 'social' startups getting astronomical valuations.
Watch the 10yr UST carefully. Its withing spitting distance of 3% now. At around 4%, the mortgages on the $700K homes will start to bite, at 5% stocks will start to waver. At 6% (if the Fed allows it reach there), we will have a nice mean reversion in asset prices.
But the economy can continue growing through all this. It happened between 1966 and 1980. GDP went up 3 times, stock market went up by 1 (yes one) point.
This topic looks dead.
Time For a new post.
Actually this board is dead. This board should be shut down. It's entire premise has been shown to be a dud. There is no bubble whatsoever.
>Actually this board is dead. This board should be shut down. It's entire premise has been shown to be a dud. There is no bubble whatsoever.
Au contraire. It is because the bubble is slowly but steadily deflating that this board is lacking activity.
The bears have nothing to prove, the bulls ... well they have abandoned the blog completely.
Excellent post! I must thank you for this informative read. I hope you will post again soon.
Kind regard
Budget Apartments in Whitefield
http://www.firstpost.com/economy/rbi-to-withdraw-pre-2005-currency-notes-to-battle-black-money-counterfeits-1353861.html
Will withdrawing currency help RBI curb inflation?
Will it bring down the Reality?
Will withdrawing currency help RBI curb inflation?
I am not sure, I checked my notes as well as couple of friends who deal with cash, but none coud find a pre-2008 bank note with us. May be it is to check on fake currency, but black money I am not sure if this is a significant step.
http://www.moneycontrol.com/news/cnbc-tv18-comments/fin-min-disagreesurjit-patel-panel-recos-sources_1029535.html?topnews=1
It seems Chidamabaram wants growth at all costs so that his real estate speculator cronies are rewarded.Aam admi can go hang himself if inflation is driving him to hunger.
Argentina seeing financial crisis, limits online purchases by individuals to two per year. Currency falls by 17% in a day.
http://www.smh.com.au/business/world-business/argentina-limits-foreign-online-buys-to-two-a-year-20140123-hv9io.html
http://www.bloomberg.com/news/2014-01-23/argentina-s-peso-plunges-17-as-central-bank-scales-back-support.html
indian rupee will start the next phase of decline...year end target is 75-80 area...
indian RE will bust inevitably..but it would first precede by widescale layoffs in some sectors and then defaults by double income group on margin...
it will be first such RE bust in a large scale (unlike Bombay bust in late 90s that were localized..) india will be just one cog in the wheel in the global RE bust...
USA will fare the best...however NY/sanfran etc will see massive bust..but unlike others US bust will be local and damage to economy not as severe...
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Emerging market sell off about to take off.Rupee going to slide again to 70+.Tradable inflation going to shoot up again.Braise for interest rises.This will drill a big hole in the slowly deftlating property bubble.
It looks like there will be a bank run on HSBC soon as they are running short of capital.I would advise any one on this forum who has an account with HSBC to cut the string and run.Pleae read this at Zerohedge:
http://www.zerohedge.com/news/2014-01-24/bank-run-fears-continue-hsbc-restricts-large-cash-withdrawals
Nice move Rajan! Now the home loan interest rates will move higher. Also higher EMIs for stupid home buyers. Yay!!
Guidelines for NRIs Selling Property in India pbytes
Ragu Rajan between rock and a hard place..
increase rates (right now real rates are negative in india and has been so for a long long time) and proactively bust the economy in order to defend overvalued Rupee...or let Rupee go ..but the latter will again create havoc w/ inflation and cad position...
Rajan, it is easy to make speeches but now your stint would be a disaster...(no fault of yours tho)
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Chalo! Kal se housing market ka crash shuru ho jayega. Done!
Indians like to live in their own bubble/s.
http://www.businessinsider.com/indian-cars-are-unsafe-group-says-2014-1
Be it pollution, safety, hygiene (remember filthy commonwealth games homes and toilets, which people though buy for >2crores) or any other thing which would not compete even remotely with the western world.
Jaypee Aman 3 is a residential project, launched by the Jaypee Group. The development will have 1 BHK, 2 BHK and 3 BHK apartments of great, spacious designs.
jaypee aman 3 sports city noida
the number of unsold ready units at the real estate portal here have inclined exponentially. the reason for this increase was the higher prices by the developers which declined sales. so now to boost the sales they have decided to compensate with their profits.
It is not amply clear that no matter what the economic circumstances, Indian real estate will not come down. India has gone through the fiscal cliff, taper, Indian currency crisis, etc. without the slightest decrease to real estate prices.
Let's say it all together: SALES MAY COME DOWN, BUT PRICES WILL NEVER COME DOWN!!!!!
YAAAAY!!!!!
Atleast the SEO spammers are benefitting from the blog.. never mind the bears following this blog and missing the oppurtunity
This is very useful and informative details, nice blog. real estate Mumbai.
the developers of the realty properties are very happy with the creation of such REITs. it has been beneficial for them s they got pool investments in their projects.
All spammers and real estate agents on this blog, your shops are going to shut down soon, because...Rajiv Awas yojana kaa sahaaraa hai !
the number of unsold ready units at the real estate portal have inclined exponentially. the reason for this increase was the higher prices by the developers which declined sales. so now to boost the sales they have decided to compensate with their profits.
Thanks you for Sharing This Post. Nice Blog
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Just closed a deal at 8200/-psf in the market where prevailing rate for under construction building is 9500/- psf. this is effectively 2010-211 rate.
who's saying there is no slowdown?
This news has been played down by Indian Media but its a first unofficial public sector bank failure in India. United Bank of India with deposits worth 1 lakh cr reported a loss of 1250 cr in Q3, and the bank has market cap of 1500 cr ! Suddenly NPAs of 3100 cr showed up in last quater after forensic RBI Audit. The bank has STOPPED giving loans from now :
http://articles.economictimes.indiatimes.com/2014-02-10/news/47200912_1_bad-loans-state-run-united-bank-tier-1-capital
http://www.livemint.com/Companies/pxraBL2Ca9qKe7IYn0zOzJ/United-Bank-of-India-posts-Rs1238-crore-loss.html
Expect a chaos in banking system in the coming months and rupee to go down.
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Layoff at IBM India
http://www.dnaindia.com/india/report-bloodbath-at-ibm-india-1961644
itna sannata kyon hai bhai?
http://economictimes.indiatimes.com/news/news-by-industry/jobs/ibm-may-axe-hundreds-in-india-for-cost-cutting/articleshow/30301500.cms
Useful information, Real estate playing important role in term of capital growth.
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@Above
Yes it's bad, layoffs in Texas Instruments, Broadcom and IBM. There's a hiring freeze in most other places.
Things are really not good for real estate industry as a whole, whether it is big or small....inflation and policy paralysis from government had some nasty effect on developers..hope 2014 will bring some fresh air in terms of policies and economic development....
@aam aadmi,
Layoff happened in my company too before any of the companies you mentioned. Many Teams were shut down, and efforts were made to retain some people. Guess what, the severance was so good that NONE accepted the offer. So all is not that bad out there.
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finally.. bulls take over.. bears on their way out.
since the thread has become defunct, pls take it down before the vultures swoop in..
I am thinking long term. I am sitting on the cash. I will wait until bank interest rates jumps up to 3% in the USA. Right now it is less than 1% but slowly rates will start increasing soon. It could take a year to two. Like me one can live in a rental apartment (worth more than 1 Crore) paying 25,000 rupees rent. I don't have to worry about maintenance and/or wear/tear of the apartment.
Total rent comes out 3 Lakhs per year.
If you put 1 crore in Bank deposit schemes, you can fetch 9 lakhs per annum now. Being an NRI I am getting 9% rate. I will be still richer by 6 lakhs each year after deducting my rent expenses.
If realty prices goes down in near future I am a winner if it does not I am still a winner making 6 lakhs per year.
Thanks for sharing. I would like to recommend you. I hope you will post again soon.
Kind regard
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"If realty prices goes down in near future I am a winner if it does not I am still a winner making 6 lakhs per year."
In 10 years 6 lakhs will be 1 crore compounded.
Real estate will remain 1 crore even after 10 years so you are doing the right thing.
And so am I :)
This thread will be back once the rates fall so never say never.
Where are the bulls lol. I dont see any. Bulls go ahead and post something.
Thanks for sharing such a nice informative blog about Real Estate services in India. keep it up for sharing...
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in every business the ups and downs are common,andthe realestate market not even in our hand,thanks for the informatiuon,very nice description Villas for sale in Hyderabad
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Hello,
Well information shared by you.
Lotus Sports City Noida is the new and good residential projects to locate at the very reputed place of Noida. It offers 3BHk/4BHK living at an affordable price. Lotus Groups has been launches of this projects.
Your informational post is great resource to lots of peoples, so i think it will easily to reach the correct market place.
Interesting information and i got a good knowledge to read your blog, so i would like to thank for creating this blog
Great blog..
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"Where are the bulls lol. I dont see any. Bulls go ahead and post something."
Bulls don't need to post anything. Bulls have been vindicated. They said prices wouldn't fall, and they haven't fallen. Period. Fullstop. Bulls have nothing to prove. The burden of proof is on the bears to show that prices have fallen. So far that has not happened and it will never happen.
Dear readers,
Please comment on this. Does anyone have experience with Dreamz infra in Bangalore city? I see their quoted price for 1-2 bhk in Electronic city, Bangaore for 8-13 lacs (600-900 sqft) in commonfloor website. Share your genuine experience.
It looks the prices dropped at this level.
Tks.
In Dombivli, a distant suburb of Mumbai, 600 sqft flat in 30 years old building was sold for 55 lakhs. The same flat would have fetched just 6 lakhs in the year 2000. This is really mind blowing. For this city the only mode of transportation is crowded train to reach Mumbai. Dombivli is not even in Mumbai and don't enjoy city life benefits. Either Indians have lot of money or they have gone mad?
@Anon - "The burden of proof is on the bears to show that prices have fallen. So far that has not happened and it will never happen."
Sorry to prick your, ummm, bubble. Looks like you did not get the memo.
http://www.business-standard.com/article/beyond-business/south-delhi-goes-south-113071901040_1.html
Ask around. Many places in Mumbai too are now seeing lower prices. This is just the start. More action to come.
head spinning, aching.. chalo going to sleep..
"He knows of a house in Vasant Vihar where the price tag has been slashed from Rs 23 crore to Rs 16 crore."
23, 16? both are same to me.. ha haha
Hello,
Very good post !
Lotus Greens Sports City Noida is the new launched in Sector 79, Noida by Lotus Greens Developers. It offers 2BHK, 3BHK and 4BHK living society at the best price.
flats costs >90lakhs.. truly India you are mind boggling..
http://www.dailymail.co.uk/indiahome/indianews/article-2581357/We-paying-price-Resident-attacks-DDA-walls-ceilings-crumble-flats-just-TWO-YEARS-OLD.html
Your blog is informative.
I am looking for properties in nagpur.Can real estate agents in nagpur help me with this?.
Thanks for sharing this valuable information.
Online Property Sites
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The latest project Supertech Eco Village 3 is redefining the exotic lifestyle amid the bustling noise of the city
Rates are going to increase.Wait till it is actually announced.
real estate agents nagpur can guide you with this.
Rates are going to increase again.
Bad news for buyers.
Search on Online Property Sites you will get more information
Great content. best real estate developers in pune
Yes the trend is already begun. the information you have given is very usefull. We are one of the best real estate developers in pune"
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Returns that were arrived at in earlier negotiations between Morgan Stanley and Wadhwa were shrinking even before concluding the deal,Congress Youth Leader in Bangalore Central
As per the last year i.e 2013 real estate report there are more NRI investment occurs. Majority of realty investmnet part held by NRI Investors. thanks for sharing wonderful and informative post.
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Hi,
Thanks for sharing valuable real estate information.
Hello,
I appreciate your blog.
Nimai Place Gurgaon is the complete investments place where you can search all types of business at the best price.
Wadhwa Group has a great amenities and their building are located at the heart of the city
Raheja
Wadhwa Group has a great amenities and their building are located at the heart of the city
Raheja
All you builders are money grabbing bastards. Fuck you all.
Hope your prices crash along with your buildings and your families suffer poverty for posterity.
i am coming to this blog after a hiatus of 2.5 years. At that time, you people were shouting bubble bubble but 2.5 years later you are doing the same thing. Seems you don't want to wake up or are delusional.
Back when i left this shit country 1BHK in Malad W used to cost Rs 75L, now it costs 1 Cr. 2BHK costs 2 Cr and 3BHK costs 3 Cr.
Guys this market is controlled by people like Sharad Pawar, Rahejas, MLAs, MPs, corrupt police officers, corrupt beauracrats, corrupt builders, corrupt bank officials.
So how can you expect prices to come down when so many wicked parties have a stake in property market?
Middle class can't get time to tackle such issues because it's completely burdened by other issues like child education fees, rent, food, travel in Mumbai, traffic, pollution, rising medical costs, bad roads, people's rising anger.
So what you expect God or some "systemic" change to come from thin air and bring down prices?
At least don't delude yourselves. Go back and see what you posted 2 or 3 years ago and how much of it came true and stop acting like losers.
This is great site for know about real estate .....thnks for valuable articles...
its great news for Mumbai real estate, wadhwa group is on of the leading brand of mumbai
Wishful thinking property prices across will come down....
Bindas Bhai
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This is just beginnning of High Supply and Low demand situation if this continues in future then Realtors will be forced to cut Rates as per Price elasticity of Demand..
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