tag:blogger.com,1999:blog-19740856.post1005095620589373186..comments2024-03-29T05:29:51.250-07:00Comments on India's housing bubble: Real estate developers caught in downturnUnknownnoreply@blogger.comBlogger11125tag:blogger.com,1999:blog-19740856.post-89761352378504996882008-09-15T18:16:00.000-07:002008-09-15T18:16:00.000-07:00Indian beggars are not only creative but very inte...Indian beggars are not only creative but very intelligent who is not waiting for bankruptcy. When Lehman has lost money in 700 million Indian real estate markets, sabbalseshu should have offered his dream analysis there. lol .....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-42072245085235301242008-09-15T00:32:00.000-07:002008-09-15T00:32:00.000-07:00As warned by myself and others on this blog here, ...As warned by myself and others on this blog here, the IT industry, the real target of the 50+L apartments, is going to feel some pain. Layoffs are beginning to happen in large numbers in companies like Satyam and Wipro. Also, what is not reported is that many smaller IT companies which had sprouted up in the last few years are now beginning to freeze wages. In Bangalore, some companies are privately telling employees to start looking for other jobs. I heard this from my cousin who is an auditor for some of these companies.<BR/><BR/>I wonder where is Ashish and Boss now. I would like them to provide their address and phone numbers so that these laid off employees, some of them who may have bought those 50+L flats, can call them. They claim to have the "RIGHT ADVICE", and I am sure they will help out with the EMIs for the affected employees, who listened to their "RIGHT ADVICE" and bought flats. <BR/><BR/>At least those employees who were renting will not lose their savings. At worst, they may have to move back in with their parents if they do not find a job in the next month or so. In India there is no stigma associated with living with parents, unlike in the West. This downturn will not be over quickly. Black money alone is not going to fill up all those apartments that are lying vacant. Yes, developers made enormous profits in the last few years, but even they cannot hold out for more than a year, since their cash flow for ongoing projects will be affected. <BR/><BR/>I hope people will not believe those real estate shills like Ashish and Boss, who will not feel one bit of remorse at those unfortunate employees who lost their jobs and now may lose their flats if they do not find a job quickly.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-3245565595598636022008-09-14T21:46:00.000-07:002008-09-14T21:46:00.000-07:00This week is going to be bad for India. Reality wi...This week is going to be bad for India. Reality will come to some high flying idiots as the stock market goes down by 1500 points in a week. Or more. <BR/><BR/>I think the right value for sensex is around 8000 or below. That would happen soon, maybe by the end of this colorful winter.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-11716145055245370972008-09-14T21:17:00.000-07:002008-09-14T21:17:00.000-07:00IT industry is already feeling the pinch of US fin...IT industry is already feeling the pinch of US financial markets turmoil and layoff (Wipro, Satyam) is already underway..<BR/>http://economictimes.indiatimes.com/Satyam_Computers_to_axe_4500_employees/articleshow/3483960.cmsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-41624132285733676992008-09-14T19:13:00.000-07:002008-09-14T19:13:00.000-07:00Indian beggars are very creativersfbIndian beggars are very creativersfbUnknownhttps://www.blogger.com/profile/09781546074139997588noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-28844680715153369002008-09-14T18:58:00.000-07:002008-09-14T18:58:00.000-07:00Anon,YOU ARE VERY RIGHT. ALL THESE PONZI SCHEMES O...Anon,<BR/>YOU ARE VERY RIGHT. ALL THESE PONZI SCHEMES OF BANKS AND WALL STREET SCAMMERS SCREWED IT UP ALL OVER THE WORLD. WHEN PEOPLE IN INDIA ARE IN DENIAL MODE, THEY WILL GIVE ANY EXCUSE TO CONVINCE THEMSELVES THAT THE PRICES WILL NOT GO DOWN. BUT THE DOWNTURN IS INEVITABLE.<BR/><BR/>THE DOW JONES FUTIRES ARE DOWN MORE THNA 300 POINTS. LEHMAN IS GONE. MERRIL LYNCH IS BOUGHT BY BOA. AIG IS GOING TO GO DOWN NEXT. THEN WAMU AND WACHOVIA AND THE LIST GOES ON AND ON. I THINK A MAJOR FINANCIAL CRAH IS COMING. IF THE CRASH COMES IN THE WORL MARKET, INDIAN STOCKS WILL TAKE A GOOD BEATING AND THE HOUSING WILL COME DOWN FASTER THAN ANTICIPATED BY MANY OTHERS. WE COULD SEE A CORECTION OF 40-50% IN 6 MONTHS FROM NOW. <BR/><BR/>THERE WILL BE LIQUIDITY CRUNCH AND A MAJOR ROUND OF LAYOOFS AWAITS FINANCIAL AND IT SECTORS. KEEP YOUR JOBS IF YOU CAN AS THE PARTY IS GETTING OVER. INDIANS HAVE TO COME DOWN TO REALITY AND LOOK AT THE AVG. SALARIES BEFORE EXPECTING HOUSE PRICES MORE THAN NY CITY.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-33268062504911416492008-09-14T16:59:00.000-07:002008-09-14T16:59:00.000-07:00The Black money is not the today's case; it...The Black money is not the today's case; it's been there since years. If you want to say that only because of black money the prices got tripled in last 3 years, it's a foolish assumption. The phenomenal change happened in last 3years is that lot of PE, hedge fund [wall street firms] invested heavily & drove up the real estate prices. Just for ref <BR/><BR/>http://economictimes.indiatimes.com/Markets/Real_Estate/News_/Unitech_bags_700_mn_Lehman_investment/rssarticleshow/3135561.cms<BR/><BR/>http://economictimes.indiatimes.com/Markets/Real_Estate/Lehman_Bros_Morgan_Stanley_eye_40_of_Parsvnath_SEZs/articleshow/2430458.cms<BR/><BR/>Today wall St. is facing sever credit crunch & got beaten up on home ground, to run up the day to day business they finding various funding alternatives & selling up assets from the balance sheet, the Indian real estate & stock investment is one of such assets. One can see the change in Sensex level & the stock prices in last 6 months, similarly the real estate prices has gone down, due to absence of clarity in real estate market it’s not coming up openly. Off course the speculator, builder & advertorial are not accepting the price slide but every one knows the truth.<BR/>It’s hard to digest the fact that you had a property worth of core & suddenly some one told that it’s worth is now only in lakh, take a hajmola -.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-80634449822674695152008-09-13T21:18:00.000-07:002008-09-13T21:18:00.000-07:00Real estate downturn leads to a 25% drop in retail...Real estate downturn leads to a 25% drop in retail rental rates. Residential rates may follow. No amount of black money can prop up this market. After all, the number of people with black money in crores is probably a small fraction of home buyers.<BR/><BR/>http://economictimes.indiatimes.com/Retail__office_rentals_witness_sharp_drop/articleshow/3481195.cms#writeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-57334826313210684722008-09-13T06:03:00.000-07:002008-09-13T06:03:00.000-07:00Following is a illustration. Mumbai is no better. ...Following is a illustration. Mumbai is no better. Draw your own conclusions.<BR/><BR/>Lokayukta raids yield close to Rs 20 crore<BR/>By: Imran Gowhar<BR/>Date: 2008-09-12<BR/><BR/>Bangalore: <BR/><BR/><BR/>imran.gowhar@mid-day.com<BR/><BR/>Lokayukta sleuths raided houses and offices of eight officials from various government departments and confiscated ill-gotten wealth worth Rs 19.46 crore from them.<BR/><BR/>An assistant engineer from BBMP alone had disproportionate income worth Rs 10 crore, which is half the amount of the total seized property.<BR/><BR/>Lokayukta Justice Santosh Hedge said that this is only the beginning, as the officials are unearthing more unaccounted money hidden by the tainted officials in benami accounts.<BR/><BR/>Reacting to a minister's remark earlier that Lokayukta officials glorify and exhibit the confiscated wealth before the media, Justice Hegde said that the Lokayukta was not running a beauty salon, and were just doing their job.<BR/><BR/>The tainted officers and their ill-gotten wealth:<BR/><BR/>Chandrashekhar, assistant engineer, BBMP<BR/>>>Joined service in 1987 as AE and has a salary of around Rs 25 lakh, but the officials seized property worth Rs 10,59,00,000 from him.<BR/>>>This includes several sites and houses in the names of his brothers-in-law B K Nagendra and B K Ashok Kumar. But the documents of the property were seized from his house.<BR/>>>When officials checked the financial status of the brothers-in-law, neither of them were income tax payers, nor were they earning enough to buy such a lot of property, Justice Hegde said.<BR/><BR/>T V Ramadas, joint director, watershed development department, Cauvery Bhavan, Bangalore<BR/>>>Amassed wealth worth Rs 2,59,80,000, which includes a 40x60 house in Tumkur, Shakthi Bhavan, a lodge in Tumkur in the name of his wife, four sites measuring 30x40 in Tumkur, 15 acres of farm land and a farm house, a temple, 10 acres of coconut groves, 15 acres of agricultural land, poultry farm, 250 g of gold, one locker that is yet to be opened.<BR/>>>According to Lokayukta, Ramadas joined the government service in 1987 and as per the records he would have earned Rs 30 lakh through his salary.<BR/><BR/>H A Hafeez, deputy director of town planning, and his brother H A Iqbal, inspector of motor vehicles, Bidar, together amassed Rs 1,42, 83,000 worth property and valuables.<BR/>>>This includes three houses and three sites in Tumkur and Mysore, one acre of land, a shopping complex, a service station, gold weighing 750 g and Rs 13,000 in cash.<BR/><BR/>Dayananda Poojari, deputy commissioner of commercial taxes, Mangalore<BR/>>>Poojari joined the government service in 1996 as probationary officer and his legitimate earnings to date would be around Rs 15 lakh.<BR/>>>Officials unearthed Rs 1,08,90,450 including a house and a site at Mangalore, 10 acres of farm, gold and silver articles worth Rs 5.25 lakh and a bank balance of Rs 15,000.<BR/>>>The officials also seized other bank accounts which are yet to be verified.<BR/><BR/>K G Manjappa, assistant director of agriculture, Shimoga<BR/>>>Manjappa joined the services in 1979 and his earning in terms of salary is around Rs 18 lakh. But the officials recovered property and other valuables worth Rs 1,01,70,000 from him.<BR/>>>This includes two houses and three sites in Shimoga, 10 acres of agricultural land, shares and other valuables.<BR/><BR/>Govindaraj, CEO, Zilla Panchayath, Tumkur<BR/>>>Govindaraj joined services as a KAS officer in 1991 and his earning according to his salary would be around Rs 25 lakh, but he has property worth Rs 1,15,65,000.<BR/>>>Two houses in Tumkur and Bangalore, 43 acres of land in Nelamangala and Doddaballapura, gold worth 250 g and cash of Rs 1 lakh.<BR/><BR/>Teja Naik, assistant executive engineer, GESCOM, Bellary<BR/>>>Naik joined the government services in 1998 and had earned Rs 12 lakh in terms of his salary but the officials seized property worth Rs 52,24,750 from him.<BR/>>>This includes two houses, five sites, gold and silver articles and cash worth Rs 30,750 from his home.<BR/><BR/>D B Naik, chief executive officer, Belgaum<BR/>>>Naik joined the government services as KAS probationary officer in 1984 and has earned Rs 30 lakh to date through his salary, but the officials confiscated property worth Rs 1,06,50,000 from him.<BR/>>>This includes seven houses, 35 acres of land in Khanapura, a guest house. This also includes investments made at PU College in Mudhol in Bijapura taluk.Unknownhttps://www.blogger.com/profile/09781546074139997588noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-76801017994890948562008-09-13T05:55:00.000-07:002008-09-13T05:55:00.000-07:00Your dream home is 100 km awayBy: Varun SinghDate:...Your dream home is 100 km away<BR/>By: Varun Singh<BR/>Date: 2008-09-13<BR/><BR/>Mumbai: <BR/><BR/>Shift of focus: Ongoing construction at a site in Karjat. Builders want to sell property on the outskirts of the city as the next hot destinations. file pic<BR/>There's more bad news if you plan to buy that dream house in the city. Prominent builders in the city, who attended the FICCI real estate summit on Thursday, said the common man can now afford a house only more<BR/>than 100 km outside the city.<BR/><BR/>Most of the builders stressed that one has to consider options as far as Karjat and Kasara to buy a flat within one's means. Mohan Deshmukh, former president of the Maharashtra Chambers of Housing Industry, said, "In the current scenario, if one has to find an affordable house, he has to go at least 100 km away from the city. There aren't many affordable houses in the city." The builders defined affordable housing as anything between Rs 1,500 per sq ft and Rs 3,000 per sq ft.<BR/><BR/>Builders claim an upsurge in the construction cost and land rates is responsible for the skyrocketing property prices in the city. Mofatraj Munot, chairman of Kalpatru Properties, said, "Rates in Mumbai are high because construction cost and land rates have increased considerably in the past few years. I spend approximately Rs 4,000 per sq ft on construction." Builder Ashish Raheja seconded Munot's views.<BR/><BR/>However, real estate experts say there are other reasons behind the picture painted by the builders. According to Ajay Chaturvedi, a real estate expert, "After garnering enough profits from the city, the builders are targeting the outskirts.<BR/><BR/>"They want to shift the focus from Mumbai to far off places. Almost every prominent builder has bought property in Karjat, Kasara, Panvel and beyond and are developing them quickly. They want to sell those areas as the next hotUnknownhttps://www.blogger.com/profile/09781546074139997588noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-9327874026602058322008-09-13T05:37:00.000-07:002008-09-13T05:37:00.000-07:00what have Lehman, Fannie, Freedie has to do with m...what have Lehman, Fannie, Freedie has to do with mumbai real estate? Most Investment in Mumbai real estate is black money which otherwise is kept buried with 0% returns, and the fluctuations in money markets has little effect on it. <BR/><BR/>Do not expect any down turn in the near future.Unknownhttps://www.blogger.com/profile/09781546074139997588noreply@blogger.com