from moneycontrol.com
CNBC-TV18 learns that the company's Garden City project in Chennai is on shaky ground. CNBC-TV18 has access to e-mails of buyers of the project, including an online survey showing that over 50% of them want to pull out. The company started bookings last April and promised to sign the agreement within 45days. But nearly one year later, the project has not even got the necessary approvals.Of the reported 1800 apartments sold in the project, nearly 53% of buyers want an out according to the survey citing delays in signing the buyers agreement. Other reasons including cost price, which DLF had hoped would be their USP has also gone against the company. At the
time of announcing the project DLF had quoted prices of 2800 per square foot, while the prevailing rates was around 3300 square foot. The prices now average between 1700-2700 per square foot and buyers are demanding that the company revise prices.
The final approval required is the stamping of the drawings by MSB panel. The panel meeting was completed on Jan 28, 2009 and we are expecting the final stamping approval anytime now. The price of Rs 2,800 per square foot is in itself the lowest price compared to prices charged by leading national and local brands and we are discussing this with an open view and are yet to take a decision.
When contacted, a DLF spokesperson said, ”The final approval required is the stamping of the drawings by MSB Panel. The panel meeting was completed on 28 Jan 2009 and we are expecting the final stamping approval anytime now. The price of Rs 2800 per square foot is in
itself the lowest price compared to prices charged by leading national and local brands. We are discussing this with an open view and are yet to take a decision.”
There are other issues as well; buyers want an Undivided Share Land clause to be signed by the company. Also; clubhouse facilities, which DLF claimed were exclusively for buyers' use, is now being thrown open to outsiders as well.
What are the options now available to the buyers? A minority section of say they might just re consider their decision to pull out if the company meets their demands. The others though say that they want their money refunded and have given the company till February 12 to do
so.
17 comments:
Poor chaps , I dont think they will get their money back and deserves them right.
Sigint from Mumbai
Bail us out, Mr CM: Builders
Mumbai:
In a desperate move, the Maharashtra Chamber of Housing Industry turns to Chief Minister Ashok Chavan for help. But, cheaper homes are still a long way off
Builders are losing sleep because of the slump in the realty market. Despite offering a number of incentives, they've failed to attract buyers. The ongoing economic slowdown has made matters worse. Seeing no other alternative to boost their dwindling fortunes, the builders have written to Chief Minister Ashok Chavan and asked him to bail them out of the crisis.
http://www.mid-day.com/news/2009/feb/090209-News-Mumbai-Chief-Minister-Ashok-Chavan-Maharashtra-Chamber-of-Housing-Industry-MCHI-VAT.htm
Why should the govt bail out.
And whose money does the govt have anyway.
The common man who is tax paying
Else all the corrupt cheats of the world are only in India. Only the salaried class gets fucked in all holes
The business class and govt bastards dont. Likes like Mukesh Ambani building for himself a Rs 8000.00 cr flat.
The following are toast in India and in fact throughout the world:
--The housing market. Price declines all over the world would be 50-70%. US is already seeing 50%drops. Coming soon to India, Canada, Australia and CHina. In fact UK, Spain, Netherlands are already toast.
--The stock market. Dow is moving to new lows of 6500 and S&P to 600 mark. Sensex would also be around 6000 level this year.
--Major losses all over the board.
--Salaries will be slashed upto 30% in private sector. People all over are running back to Govt. jobs. In US for every job Govt. advertises, there are like 500 applications. India has so many people, for every job there would soon be a lot of people applying. Thereby slashing salaries.
--Consumer spending is over. It would be really hard to get consumers to spend for at least 5 more years.
--A lot of corporations who enjoyed unethical business in the past 5-7 years will be punished. The CEOs are soon going to be spanked for their stupidity.
The time we saw in the past 5-7 years will never come back in our lifetime. The market is not coming back up anytime soon. The supply of houses in both US and India is till 2025. The issue is to save the world from crashing.
We may start seeing some improvement to house prices after 2016. The India housing market will see a bottom around 2011-12.
HB
Bangalore real estate to be worst hit - Centrum report
Full Report
ICICI Bank exec director, CFO to get Rs 1.2 cr each annually
as per the above report, recovery is likely to occur in Bangalore only in FY 11
Dear Observer, HB and Vulture,
I think in just two months we will see minimum 20% price fall in Mumbai.
All the best to you all!!!
Bindas Bhai
Bindaas,
It is a slow process of price declines. People do not lower unless absolutely necessary. It is the market conditions that would make everyone lower prices and a danda on their back that will make them become more sane.
It might take more time for people to come to reality. Most companies and people are still thinking that Govt. will save them. Govt. itself is not doing very well after all the previous bailouts.
HB
Unitech reschedules over 75 pct of debt: MD
10 Feb 2009, 1224 hrs IST
Unitech Ltd has rescheduled more than 75 percent of its total debt and is in a stronger position to tackle the property slump, its managing director said on Tuesday.
Comment:
This is nothing but buying time and hoping for a miraculous recovery. Politicians are definitely involved in this manipulation, otherwise no nationalized banks would agree to reschedule the loans to a company that is facing imminent bankruptcy.
The real estate sector is doomed no matter what tricks these guys may come up. The biggest mistake these guys made when they started comparing the indian cities to those in the western world and constructing luxury building overlooking the fact that 90% of the people in the country live below the poverty line. The rest 10% well off people wouldn't risk investing or simply park their surplus in western banks
Economic Times:
Drop in rental costs make retailers optimistic
9 Feb 2009, 1325 hrs IST, Kala Vijayraghavan & Rajesh Unnikrishnan
Retailers expect improved profit margins this year following a sharp drop in rental costs to around 3-4% of sales this year, from an average 10-15% early last year.
Comment:
Another joke. Obviously, the news refers to retail space in big malls. No sane minded person is going to shop in such malls when they can see where our economy is heading to.
Economic Times:
Real estate to witness turnaround after next 2 quarters: Kotak
29 Jan 2009, 1608 hrs IST, PTI
Comment: Another scammer, this time a bank.
Real estate prices remain as an X factor
Indians feel the pinch as property bubble bursts
Video link:
http://english.aljazeera.net/news/asia/2009/02/2009211133751315333.html
Now the economic crisis has raised the question on Globalization?
Since last 15 years the world is following the globalization path & trying to integrate the economies, but globalization is still not mature. After crisis every nation is looking for protectionism. Banks who got the bailout money, can’t lend to foreigners,
they cannot hire foreign workers. This may cause the growth in shadow banking in future. World will take time to adjust with the new financing options.
http://www.hkcpec.org/files/v10.pdf
The reverse course of globalization is going to affect every other business & job.
This is going to impact the way the Indian companies used to finance their debt &
acquisition. No more easy loans from London market to RE companies.
The local banks are allowing to roll over the loans, because they are aware that the collateral prices has dropped by 50% & if they will foreclose the properties it will come as a toxic asset on the Banks balance sheet. If SEBI will mandate to evaluate the collateral with market rate, it will become a big task for politicians to save the Banking system like US. Yes, these are the benefits of nationalization.
Please ask Mr Chidambaram, as RE is such a substantial part of India’s GDP, how come our Banking system is solvent? when both are going hand in hand.
So guys let it fall then only pick up, minimum 50% price cut is guarantee.
Vulture.
Infosys extends bench training
Pasting the last few lines below:
A recovery from the present crisis may take longer than 18 months, he said. For IT companies to come out of this crisis, senior managements would have to take salary cuts, he said.
-Gadadhari_Bhim
DLF has just announced a significant cut in the prices of their relaunched project off bannergahtta road according to listings in craigslist. The previously announced prices were 2800 per/sq ft. for apartments and they had cancelled the town houses priced at 3600/sq.ft.
The revised prices are ranging from 1850 to 2000/sq.ft.Quite unbelivable coming from the biggest builder and this means u get 1820 sq.ft. apt. 3BHK, 4 toilet with servant quarters at 33 lakhs appx.Is it a sign of things to come? how can big and small bulidrs with little or no amenities continue to cling to unrealistic prices ranging from 3,000 to 4,000/sq. ft. in the same bannerghatta road and for how long?
Also will DLF collect money based on timeline rather than milestone basis and put this money elsewhere to complete their projects. I heard that their Chennai project is in dodldrums with investors demanding price cuts in alignment with prevailing market rates.
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