tag:blogger.com,1999:blog-19740856.post629317545696330181..comments2024-03-29T05:29:51.250-07:00Comments on India's housing bubble: Mumbai, Delhi realty rates on way downUnknownnoreply@blogger.comBlogger60125tag:blogger.com,1999:blog-19740856.post-29789553801941936602012-12-07T01:21:49.268-08:002012-12-07T01:21:49.268-08:00This comment has been removed by the author.rajnihttps://www.blogger.com/profile/06444939579267581761noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-251953928373806792012-04-23T23:19:28.827-07:002012-04-23T23:19:28.827-07:00Hi, I booked my flat on sept 2009 at runwal's ...Hi, I booked my flat on sept 2009 at runwal's garden city-Phase 2 Bldg name Jasmine, balkum, thane and the possession date in agreement is dec 2011, but till no possession. Plz look in to the issue. Regards, VishalVishalhttps://www.blogger.com/profile/11154115158647747294noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-32501408163704073822011-01-08T02:01:26.831-08:002011-01-08T02:01:26.831-08:00My cousin recommended this blog and she was totall...My cousin recommended this blog and she was totally right keep up the fantastic work!<br /><br /><br /><a href="http://www.indimoto.com/used-cars-in-Mumbai.html" rel="nofollow">Used Cars in Mumbai</a>Jeraldhttps://www.blogger.com/profile/17859687923655881939noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-29783237417195267362010-10-12T23:50:16.356-07:002010-10-12T23:50:16.356-07:00Its true that the price of real estate in Mumbai i...Its true that the price of real estate in Mumbai is quite expensive, even everyone invest money on it.Mumbai propertyhttp://www.agnidreamhomes.com/noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-49259414734613791882010-08-07T10:52:16.406-07:002010-08-07T10:52:16.406-07:00Guys...guys...guys.....lets stick to facts.
Fact 1...Guys...guys...guys.....lets stick to facts.<br />Fact 1 RBI has instructed banks lend at rates above base rate, so loans are now costly for builders.Till date Banks have been financing builders and Individuals for the same property, providing discounted interest rate to builders(cost of discount was shifted to individuals like us).....remember builders tying up with banks for home loans.<br />Fact 2 Holding power of builders will now decreased thus small builders would be first to given in.<br />Fact 3 Bank will now play by rule thus buuilders would have to pay up their huge and costly loans with bank sooner than they planned.<br />Fact 4 Many RE / builders are now come up with IPO for financial stability(more accurately to pay bank loans and shift the risk to stockholders). YES Stocks / Sensex will get effected in near future.<br />Fact 5 Profits as per their declared Balance Sheet would never be interesting so those who purchased their share...GOD HELP.<br />Fact 6 Banks would now play safe thus no more pampering builders will make finance more difficult. RE would start dipping. Bubble burst.<br /><br />Investers be cautious. Just stick with facts.Unknownhttps://www.blogger.com/profile/15260593946637599446noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-42989267440826152602010-06-25T04:02:34.445-07:002010-06-25T04:02:34.445-07:00Mumbai Real Estateis really exceeding faster, as a...<a href="www.ressex.com" rel="nofollow">Mumbai Real Estate</a>is really exceeding faster, as a result house is beyond dreams of common man atleast in mumbai.Mumbai Real Estatehttp://www.ressex.comnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-55832524921059300872010-05-27T07:05:50.929-07:002010-05-27T07:05:50.929-07:00Omkar: Just look at Burj Dubai.
Our eyes are awak...Omkar: Just look at Burj Dubai.<br /><br />Our eyes are awake. India has lot of land, there is no land shortage. In mumbai, there is artificial shortage created by poor infrastructure and politics. There is no reason people should have to pay New York price, living in 3rd world city called Mumbai. Construction is oldest industry. All is needed is few bold builders, coming up with large townships around mumbai and prices will drop like hawa mahal.shaileshhttps://www.blogger.com/profile/14407031960831830463noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-65926789582985717262010-05-26T21:40:33.310-07:002010-05-26T21:40:33.310-07:00Dear deamers,
In case if your eyes are still not o...Dear deamers,<br />In case if your eyes are still not open.. see the biggest property deal in India's real estate history, was signed yesterday<br />http://content.magicbricks.com/biggest-deal-6-acres-for-rs-4k-cr<br /><br />Any comments now ??OMhttps://www.blogger.com/profile/14028307339185662733noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-33890729901161136522010-05-20T11:43:49.953-07:002010-05-20T11:43:49.953-07:00I just checked Rupee is at 47.30 now.
The curren...I just checked Rupee is at 47.30 now. <br /><br />The current Indian economy is based on borrowed money and majority is debt unlike all the failing countries like Greece, Spain etc. And on top of it there is a massive RE bubble.<br /><br />I see Rupee going to Rs. 55-60 in a year or so. And the way Dow is going down, Euro is going down, Sensex will take a dive too. Foreign investors will fled India and there could be a drop of 6000-7000 points on Sensex. That means Rupee goes to RS. 60. And if RE bubble bursts, Rupee could take a further hit and if S&P downgrades India's debt, all growth goes to toilet for a long time. It will take India at least 10 years to come out of the bubble mess it has created for itself.<br /><br />the only way out is if RBI increases interest rates by 400-500 basis points. Which it will not as it doesn't want the bubble to burst. It wants to maintain the bubble at somewhat okay inflation. But if Inflation is not controlled, there could be unrest.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-648345768094658182010-05-20T11:37:58.717-07:002010-05-20T11:37:58.717-07:00Vijay dear,
Majority of India's growth is base...Vijay dear,<br />Majority of India's growth is based on Rupee/USD arbitrage. If Rupee strengthens, the economy will go to the toilet as all IT companies and exporters will be out of business. RBI will never let Rupee appreciate say around Rs.43-44 in current times.<br /><br />India is still 50 years away from Rupee to come to even Rs.25 per USD. <br /><br />And don't think that only India is growing, US will also grow too and maybe at a faster pace later after this depression.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-55876564155257437822010-05-20T11:19:38.745-07:002010-05-20T11:19:38.745-07:00"I tend to disagree on Rupee value. In 1980 t..."I tend to disagree on Rupee value. In 1980 the rupee was 38.4 per dollar and it slid down to 44.5 in 2000 due to the retrograde trade policies of the old governments. Since 2000, the value has been fluctuating between 44 and 46 just like any major currencies. It is very unlikely that Rupee is going to slide as our economy is sound, in fact better than industrialized countries."<br /><br /><br />Dear Anony you are completely wrong on the exchange rates. The conversion in 1980 is 7.8 Rs per 1 US $. Please see the link below...<br /><br />Looks like our IT companies should be thankful to MMS for giving competitive edge...<br /><br />http://fx.sauder.ubc.ca/etc/USDpages.pdf<br /><br />The other interesting point is when countries grow their exchange rates strengthen (e.g. Yen).. 20 years down the line we may see Rs 20 / US $<br /><br />Thoughts ??Vijaynoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-11345461397772629322010-05-20T08:17:39.529-07:002010-05-20T08:17:39.529-07:00Anon above:
As someone said earlier about Demand/S...Anon above:<br />As someone said earlier about Demand/Supply:<br /><br />My dear, if this basic supply and demand theory were true, the rents would have have been very high. Anytime there is real demand, rents should go high as high as monthly mortgage. If rents don't increase, then it is speculative demand created by infestors. <br /><br />Do not try to convince yourself by basic micro-econ theories. There is massive speculative demand created all over India by infestors and it is bound to crash the RE market.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-31582145399145114852010-05-20T05:11:53.947-07:002010-05-20T05:11:53.947-07:00Anonymous 6:49
Well said. The dark madrasi and an...Anonymous 6:49<br /><br />Well said. The dark madrasi and andhra people have attitude problem. These people have domestic servants and in hotels they treat the waiters like their domestics. It is their culture. However, ghuras are treated as masters.<br /><br />This feudal culture will certainly disappear once people start getting education and realise that in no way they are inferior to anyone. In Europe you may find a CEO and lower level employee sitting together having lunch/dinner but in India this is considered as taboo.<br /><br />Coming to real estate, the moneyed guys grab the best paying any price. I am too convinced that this is demand/supply phenomenon. I dont think that the investors are involved in this game very much.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-84562905726453395392010-05-20T04:12:21.310-07:002010-05-20T04:12:21.310-07:00Property rates are zooming, but realty firms don’t...<a href="http://moneylife.in/article/8/5439.html" rel="nofollow">Property rates are zooming, but realty firms don’t seem to be raking it in</a><br /><br />After the March 2010 quarter results, most listed developers were quoted in media reports claiming that they were satisfied with the annual sales growth over the past fiscal.<br /><br />However, the numbers portray a mixed bag of results. If we compare the operating profit of FY09-10 versus FY08-09, of a few listed real-estate companies, this is the picture that emerges. DLF Ltd has reported a fall of 36% in operating profit (FY10 was at Rs1,109.61 crore; FY09 at Rs1,721.58 crore), Sobha Developers Ltd has reported a drop of 6% in operating profit (FY10: Rs254.5 crore; FY09: Rs269.7crore), Parsvnath Developers Ltd reported 5% annual growth (FY10: Rs233.31 crore ; FY09: Rs221.24 crore).<br /><br />“One of the major reasons for de-growth is that developers are initiating new construction when the corresponding sales are not happening. Developers are failing to report incremental sales. They are just holding on to high prices without being bothered about sales,” said Aditya Bansal, vice president (finance), Liases Foras.shaileshhttps://www.blogger.com/profile/14407031960831830463noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-64932878030237196842010-05-20T04:04:42.696-07:002010-05-20T04:04:42.696-07:00Age old desire to plan child life by their parents...<i>Age old desire to plan child life by their parents !!! For once, people did not worry about their kids and enjoyed their own wealth, world would be better place.</i><br /><br /><a href="http://www.icis.com/blogs/asian-chemical-connections/2010/05/bursting-chinas-real-estate-bu.html" rel="nofollow">Bursting China's real estate bubble...</a><br /><br />...is not going to be easy and the Chinese government's attempts to control sky rocketing prices will not work unless there is a change in the local culture, a chemical industry executive confidently predicted at last week's Apic conference in Mumbai.<br /><br />I thought the executive was referring to the Chinese love for speculating in real estate. But it turned out to be something more.<br /><br />Chinese families, the executive explained, are supporting the boom as they are buying houses for their children, especially sons.<br /><br />"It does not matter if the boy is still studying or does not even have a girlfriend; parents are putting aside money to buy an apartment. I have surveyed all the Chinese working in my office and found that most of them have invested in a house for their children," said the expat executive.<br /><br />"You will see a lot of empty apartments in big cities; I live in a complex that has 1000 units and after 2 years only about 10% are occupied," he added.shaileshhttps://www.blogger.com/profile/14407031960831830463noreply@blogger.comtag:blogger.com,1999:blog-19740856.post-37038684329500613412010-05-19T19:18:55.416-07:002010-05-19T19:18:55.416-07:00Well, I know of only one person who went back to I...Well, I know of only one person who went back to India for good in the last 15 years I've been away from India. And this person didn't go by his choice but had visa issues and had to leave the country.<br /><br />I don't think India will need 200 years to parallel, but maybe 50-60 years. All India needs is a new generation of thoughful and logical people and in 50 years the current crop of greedy people will definitely die.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-41858400363815942272010-05-19T18:49:57.350-07:002010-05-19T18:49:57.350-07:00@Anomymous 2:17
I too live in US and visit India...@Anomymous 2:17 <br /><br />I too live in US and visit India often. Your sarcastic parallels between these countries is like comparing yourself with someone in a remote village in India.<br />India is different. If you are fair complexioned and look like a ghora, most dark indians consider it a privilege to eat your shit. Starting at the arrival airport, everyone begs for money including top official. India is ruled by feudal s and all the democracy talk is a sham. The elite want the people to live in slums and lick their ass. I stayed a few days in a hotel called President in Mumbai which was supposed to be 5 star, and I saw all the moneyed niggers from south treating the waiters so badly.<br /><br /> Boy, India may need another 200 years to develop and reach the current US standards. Thjerefore, don't compare a country like India to US<br /><br />I'm glad that I left this country for goodAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-66029522556271066062010-05-19T16:32:42.257-07:002010-05-19T16:32:42.257-07:00Drunkard (Real Estate Companies) was bailed out on...Drunkard (Real Estate Companies) was bailed out once by the Government of India through Public Sector Banks. Let us see how many times he maxes out the credit card and get a new card. Ultimately he is going to hit the wall.<br /><br /><br /><a href="http://business.rediff.com/slide-show/2010/may/19/slide-show-1-builders-in-trouble-as-rs-25000-crore-debt-payment-looms.htm#contentTop" rel="nofollow">Builders in trouble! Rs 25,000-crore debt payment looms </a><br /><br />Last updated on: May 19, 2010 11:58 IST<br /><br />Raghavendra Kamath in Mumbai<br /><br /><br />According to Reserve Bank of India estimates, developers have piled up debt of Rs 75,000 crore (Rs 750 billion). <b> Public sector banks restructured debt worth Rs 10,000 crore (Rs 100 billion) in 2009 and allowed them a roll over. </b> <br /><br />By March 2011, developers need to repay this amount. An additional Rs 15,000 crore (Rs 150 billion) will be due this year, says a recent report by Kim Eng Securities. What has made matters worse for developers is that the Reserve Bank of India has already ruled out fresh restructuring for them.<br /><br />Equity route risky<br /><br />The equity route, earlier a hot favourite of property developers to repay debt and fund projects, is turning out to be tough. After developers such as <br /><br />~Omaxe could not raise fresh equity, <br /><br />~Delhi-based Parsvnath had to cut its Qualified Institutional Placement size by half, due to poor investor response. <br /><br />~Sobha Developers had to reduce the amount expected from a QIP after it failed to raise funds in its first attempt last June. <br /><br />Though at least 10 public issues by developers such as Emaar MGF, Lodha Developers, Oberoi Realty, BPTP and others, worth over Rs 10,000 crore, have got the nod of capital markets regulator Sebi, they are yet to announce offer dates. <b> And, most of them are banking on their IPOs to repay a significant amount of their debt. </b>Jayantnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-61122121074598085912010-05-19T14:17:49.494-07:002010-05-19T14:17:49.494-07:00Houses in India are same price as US. People say t...Houses in India are same price as US. People say that's fine and India is growing. Here is a breakup of equivalent costs for India:<br />--Minimum wage in India is Rs.350 per hour almost same as US. It means all labour people would make Rs. 3,500 per day for a 10 hour work day.<br />--The insurance cost for cars is Rs. 5000 per month or Rs. 60,000 per year per vehicle same as US.<br />--When the cost of One tomato of normal size is Rs.50.<br />--When the cost of eating out in a normal low grade restaurant is Rs.1500 for 2 people same as US.<br />--When only poor people flock to McDonalds and Pizza Hut as in US or for cheap meals.<br />--When RE tax is Rs. 10 lacs per year for a 2 crore property and 5 lac per year for a 1 crore property, same as NJ, US.<br />--When the monthly cable bill is Rs. 5000.<br />--When the monthly electricity/gas bill is Rs. 10,000 per month.<br />--When the tuition fee for a child is Rs. 1.5 lacs per month.<br />--When the college fee is Rs. 50-70lacs for a degree plus living expenses.<br />--Salaries in India are already very high for a lot of people but the above costs will put in a infrastructure that would take away 40-50% of their salaries plus taxes another 40%. Net savings would be not more than 5%.<br />--On top of this, no cheating and no black money. If someone is caught even with a traffice violation, fine is Rs. 10,000. Jail time is very common for even small offences.<br /><br />The point is that people in US make money and the salary pizza gets distributed right away for expenses. The RE prices are adjusting for the common man in US.<br /><br />In India also, RE will adjust for common man in future. All this talk about Indias riches is nonsense based on inflated RE values.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-71771208034866185022010-05-19T13:06:58.666-07:002010-05-19T13:06:58.666-07:00Anon above:
You said"As someone mentioned ear...Anon above:<br />You said"As someone mentioned earlier, this whole thing is related to demand and supply"<br /><br /><br />My dear, if this basic supply and demand theory were true, the rents would have have been very high. Anytime there is real demand, rents should go high as high as monthly mortgage. If rents don't increase, then it is speculative demand created by infestors. <br /><br />Do not try to convince yourself by basic finance theories. There is massive speculative demand created all over India by infestors and it is bound to crash the RE market.<br /><br />If you do not believe, buy more flats. Borrow more and inflate the bubble even bigger.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-843015910518357392010-05-19T12:17:11.434-07:002010-05-19T12:17:11.434-07:00It amazes me that there are so many people here wh...It amazes me that there are so many people here who, like ostriches with their heads buried in the sand, keep putting forward the argument - "Because it is like this today, it will be like this forever" and completely ignore any rational thought that may even indicate a possibility that tomorrow might bring something different.<br /><br />So because there may be black money, and corruption, and supply and demand, and prosperity and wealth <i>today</i> they draw the logically fallacious conclusion that it will remain that way <i>forever</i>.<br /><br />That is no different than saying that because you are young and alive today, you will be immortal and never age.<br /><br />If you believe that, then honestly, I have nothing to say to you. Do what you will - and don't go crying to Mommy when the inevitable hand of time and change is stuck so deep in your backside that it chokes you all the way to your financial doom.DhImAnnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-1775194384007029292010-05-19T10:51:43.854-07:002010-05-19T10:51:43.854-07:00Quote "I guess when builders charge 1Cr for 7...Quote "I guess when builders charge 1Cr for 750sq. ft. carper in areas like Mulund, Bhandup, Kandivli, Borivali and Thane then the time has come to call it a bubble "<br /><br />*Builders don't force anyone to buy. In fact, it is the buyers who decide to pay. At least in Mumbai, speculators/investors aren't driving the prices up. In fact, there are no speculators/investors. People are buying homes for their primary/secondary uses.* How can anyone call this scenaro 'bubble'<br /><br /> Unlike west, people in Mumbai dont move from one flat to another. Investment in a flat is a life time investment and it is unlikely that they are bothered about the increase/decrease in prices.<br /><br />As someone mentioned earlier, this whole thing is related to demand and supplyAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-76190379289100286112010-05-19T05:09:17.016-07:002010-05-19T05:09:17.016-07:00I guess when builders charge 1Cr for 750sq. ft. ca...I guess when builders charge 1Cr for 750sq. ft. carper in areas like Mulund, Bhandup, Kandivli, Borivali and Thane then the time has come to call it a bubble. The heart of the city BKC is a good 15Kms from these places and the Financial Center (NP and Cuffe Parade) is a good 35Kms away from there. There is no way apartments should be selling for 1Cr. This is insane and no matter how much people talk about black money, these prices cannot be sustained. Even if someone buys a flat with black money he will need to sell it one day. All the investors booking flats in per-sales know that there is a good 3 years before construction is complete. That glut will come in 2011-12 which is flats from the launches of 2008. This will bring down prices. After all an investor will gain only when he sells a house right? Or does he forever look at paper profits???Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-11768332697371569622010-05-19T04:55:42.307-07:002010-05-19T04:55:42.307-07:00Anonymous 3:35,
Govt just made 17,000 cr from G3 ...Anonymous 3:35,<br /><br />Govt just made 17,000 cr from G3 auction. My point is that 25000 cr is nothing to a economy like India<br /><br />RE will flourish as long as black economy flourishes. Make no mistake about this. People who have been starving will continue to starve wher as all the fruits of development are pocketed by few who hold people like us to ransom.<br /><br />Who will believe that a apartment ina shithole place like bhandup costs 1 cr. That is $220,000 US.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19740856.post-91361274587559800922010-05-19T03:35:53.927-07:002010-05-19T03:35:53.927-07:00All merry in RE sector is because loans were allow...All merry in RE sector is because loans were allowed to get restructured last year. <br /><br />If this is contined this year, then no one can save India from economic disaster.<br /><br />If this is not continued this year, India will be saved a bit but tough time for builders <br /><br />http://business.rediff.com/slide-show/2010/may/19/slide-show-1-builders-in-trouble-as-rs-25000-crore-debt-payment-looms.htmAnonymousnoreply@blogger.com