Reading the report it is still not clear why Pune prices are higher then prime areas of Bangalore. Sadashiv Nagar is Bangalore is one of the most sought out places to live in. How come this price is lower then Koregoan Park in Pune ? Most likely answer would be that the reporting of Pune prices is manipulated due to vested interests. Does anybody think otherwise ?
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If you have been unsure about the current state of property market, here are some definite pointers that suggest the rates are going down south. According to the latest reports released by Knight Frank India Pvt Ltd (March 2009), property rates across metro cities have dropped. The fall in rates are especially tangible in overheated pockets, which hitherto had witnessed phenomenal rise, such as Noida and Gurgaon in the National Capital Region; Goregaon, Borivili, Vashi and Mulund in Mumbai and Koramangala in Bangalore.
Here is a link to the pricing.
If you have been unsure about the current state of property market, here are some definite pointers that suggest the rates are going down south. According to the latest reports released by Knight Frank India Pvt Ltd (March 2009), property rates across metro cities have dropped. The fall in rates are especially tangible in overheated pockets, which hitherto had witnessed phenomenal rise, such as Noida and Gurgaon in the National Capital Region; Goregaon, Borivili, Vashi and Mulund in Mumbai and Koramangala in Bangalore.
Here is a link to the pricing.
17 comments:
China Property prices likely to halve
I have just one word for CNN-IBN reports - 'bullshit'
Pune prices much higher than Bangalore for a obvious reasons. Black moneyed banias and marathis from mumbai are making Pune as their second home. Just drive around boat club, koregaon park, fatima nagar and see the occupancy during the weekday and compare it with sat/sundays. No doubt, Pune is filthy but still cleaner and less polluted than post places of mumbai like malabar hill, bandra, shivaji park etc etc.
Irrational everything
“Psychology today differentiates between two methods of thinking: There is the intuitive method, and there is the rational one. The intuitive method is characterized by rapid learning, and it concludes very quickly that what has happened the last three times will happen forever, again and again."
Why is it that we believe that if it has happened three times, it will happen again?
Of all the observations and behaviors you have observed over the last 40 years - and you have observed many kinds of irrational behavior - which would you say is most responsible for the current crisis?
"Well, that's a good question, and it can be looked at from the lowest level: the borrowers, those who took out mortgages. What happened to them? They were really convinced that real estate prices would go up forever. How could they have believed such a thing? They believed it because people who had certain interests told them. They were not suspicious enough, and the market permitted it." [ Prof. Daniel Kahneman Nobel Laureate]
http://www.haaretz.com/hasen/
spages/1077151.html
Under the heading of price correction the biased survey is creating confusion on price information.
Kalyani nagar - 5000/psf
Viman nagar – 3000/psf
At above price also there are no buyers.
Due to various projects in last 5 years this particular areas has seen surge in supply. Today maximum apartments are available in re-sale category from same area.
In 98-01, Kondwa was the most heap area in Pune. If one will compare today’s rates in Kondwa,
& newly developing areas Kondwa rates are less.
Same comparison is applicable to Magarpatta city.
So guys let it fall then only pick up, minimum 50% price cut is guarantee.
Vulture.
PUNE has SHARAD PAWAR the kingpin among corrupt politician in INDIA.
It is no surprise then that the biggest HAWALA trader in INDIA was caught in PUNE, Hasan ali it is alleged has laundered money to the tune of Rs35000 crores. Obviously this money does flow - in and out of the country - another scam which was close to PUNE was TELGI. It was a virtual currency printing machine. PAWARs name has been associated with both individuals. Till date there has been no info either HASAN aliS OR Telgis money ?
Sure some of it has been parked in KOREGAON park.
PAWAR has developed a whole lake town in LAVASA.
The rumour has it that he wants to move the PUNE railway station to a new place called URLI KANCHAN and purchased nearly 80% of the land around there.
"The general phenomenon of suggestibility - when people believe too much in what is being suggested to them. It's related to the anchoring we saw before. How easy is it to influence people? You introduce a number into their heads, and they attribute importance to it when there really is none. There's a sucker born every minute."
Thank you Vulture (@7:29 PM)for sharing the article
THE REPORT IS BULLSHIT.
IT SAYS THAT IN EAST DELHI (MAYUR VIHAR ETC.) THE PRICES HAVE INCREASED BY 11% TO 5500. THIS IS NONSENSE. I HAVE BOUGHT IN THE SAME AREA AT 4100. MY FRIEND HAS BOUGHT AT 4050. AND BOTH THESE ARE THE BEST SOCEITIES.
THIS IS A SOFT MARKETING ARTICLE. NOWHERE THE PRICES ARE RISING. AND THE PLACES WHERE THAT HAVE MENTIONED PRICES AS FALLING, NO TRANSACTION IS TAKING PLACE.
I WOULD SAY .. BEWARE!!
Interview with Narayan Murthy. I think he nailed following accurately. This was the main reason for Mumbai to loose its IT strength that was built in early 90's. That is probably happening now to Baglore now.
‘The Rich Can’t Live In A Make-Believe World In India’The land vs machine struggle is brewing all over the country: Singur, Nandigram, Dhamra, Lanjigarh, the Reliance project in Haryana, and, of course, the SEZs. Why should a farmer or a tribal, relatively happy with his piece of land or farm, part with it for a factory where he sees no role for himself?
The mess is because of our policies. If we come out with decent urban planning policies, I believe that we will not get into this problem. For example, the FSI (Floor Space Index) in this area is between 1 and 1.25, or maybe it has increased slightly. The result is, for every thousand new engineers that we recruit, we need five acres of land. We recruited 25,000 engineers last year, so needed 125 acres of land. If our urban planning people had come out with an FSI of 15, as in Hong Kong, New York, Paris, London or Shanghai, the requirement of land would been 1/10th or 1/15th of what we have used.
The fault is actually not with industry, the fault is with urban planners. We have to adapt very quickly so that we can have inclusive growth. Similarly, we can ensure that we can move towards better opportunity, better job creation in manufacturing. Suppose the government were to allow multiple levels even in a manufacturing plant. It is possible that we can innovate and reduce the requirement of land.
Mass need vs vote greed
The mass creation of affordable housing depends on government policies. But most leaders don’t want to deliver on this because it lacks the quick feel-good factor such as cheaper fuel. It takes at least three years for development-driven initiatives to yield perceptible results. This is why it doesn’t interest most politicians.
Then again, backward-looking and vague urban development policies are a great way for most politicians to make pots of money. The result: even as ‘license raj’ left most other areas of the economy, it stays on in the urban development sector. The rules are not only retrograde. We need multiple permits to build anything.
It is also clear that speculative real estate development practices have aggravated the problem.
Financial play with fancy valuations created the bubble. One of the most positive fallouts of this economic downturn is that large developers have started to embrace middle-income housing. But real estate prices are cyclical. In the long run, if you don’t find a way to add to housing stock, the supply-demand gap will widen and prices will rise.
The primary reason that large-scale market-driven mass housing has not taken off in our cities is that land is severely restricted. Our cities impose enormous restrictions on the supply of land and the density of development.
Dear All,
Can anybody tell me if foreigners are allowed to invest in India in real estate directly? I am not talking about the PE investors but final users. As far as my knowledge goes, RBI has banned this and its not legal.
I wonder if that's the case how is this possible as you can see below. I just did the google and its says clearley that foreigners are not allowed to invest. I think its a scam in making....
Pls advice
regards
raju
Lawyers to investigate Indian property developments over mismanaged funds
Monday, 20 April 2009
Irish investors concerned about incomplete Indian projectsHundreds of Irish property investors are seeking clarification over delays and confusion surrounding two Indian real estate developments.
Some 245 Irish investors who have bought a total of 294 apartments in two off-plan developments near Delhi in India through a Dublin-based investment company Kuvera in the last two years are concerned that they have not been completed.
The real estate investors, who have paid between €34,000 and €42,000 per unit on the Orchard View and Mountain View developments, are trying to get a refund but they are not able to find out what has happened to their money.
Kuvera, which is the name of the Hindu god of wealth, is run by former stockbroker Kieran Murphy. The investors say that when they contacted Kuvera's Dublin offices they were given a statement which said that they had contracted directly with the local Indian developer, VG Buildtech, when purchasing their properties.
'At no time has there been any contractual relationship between the investors and Kuvera (Irl) Ltd,' the statement said. It said that that they should contact Kuvera Properties (India) Ltd as it is the management company based in India to oversee the progress of the development and the financing of the development.
'While in-depth queries have been raised by Kuvera (Irl) Ltd, the required information and clarifications have not been either forthcoming or satisfactory from VG Buildtech or Kuvera Properties India,' the statement continued.
The company also said that it has engaged the New Delhi-based law firm Fox Mandal Little to investigate if there has been any mismanagement of funds and to establish the 'current legal and financial status of the developments'.
But investors, who have put €8.9 million into the developments, are not satisfied. Kieran Murphy, who co-owns Kuvera Ireland with his wife Suzanne Kelly, also has a majority shareholding of 55% in Kuvera India. It, in turn, owns 50% of VG Buildtech. They have now consulted an Irish solicitor, Anthony Joyce. They also plan to engage a lawyer in India.
Jobs only if you pass test, Cognizant tells campus recruits
The move comes as a surprise for the engineering graduates who were offered jobs by the company back in 2007, when they were still in college. Had all gone well, they would have joined after passing out of college in mid-2008.
This is just the beginning of the end.
Roubini bets bottom'll be made next year, not this~ When you scratch the surface of those numbers, all these financial institutions look much weaker than they are. They are not provisioned enough. I expect their losses will peak at $3.6 trillion.
~ They've only written down $1 trillion, so their numbers are going to get much worse - especially given the unemployment rate. When that is at 10%, default rates and losses are going to be huge, and recovery rates will be very low.
~ But if I am right, many banks are still in severe trouble, they've not recognised their problems, and we could have another round of banking problems.
Well, if the media says prices are going down, it is used as a proof of crash/correction. If the report is contrary to crash fantasy, the media suddenly becomes biased and untrue. Bears can't have it both ways. One should understand the profile of people living in Koregaon Park/Kalyani Nagar. This will automatically answer the question why prices are so high.
http://rightadvice4u.blogspot.com/
Hi,
Abt politician builder nexus, its a known fact.
Builder finance election campaign, if they r not already owned by these politicos.
Friend afterall succeeful politician is the only CAREER paying more than the builder.
The urban palnning has been kept shady, development plans pending and ever changing, guess who is the gainer. The land records, land rules, development policies r still archaic.
No urban plans- No planned development-shortages of homes & land.
No computerisation- no transparancy-ignorance.
Result:
No infrastructure- private (politico/builder monopoly)-Funds
Hardships Aam admi.
No wonder DP for PUNE pending for decades
Transport plans-metro/roadway still not firmed.
Aam Aadmi continue to pay for hyped prices.
Simply, admirable what you have done here. It is fabulous to see you verbalize from the heart and your clarity on this significant subject can be easily seen. Fantastic post and will look forward to your incoming update.
Regards,
Krrish
nice blog, we are interesting blog thanks for offering facts about actual estate builder and constructor
Nice post!!
Happy blogging...
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