Now the term "Alibaug is aaya kya" is Bambaiya hindi will have a new ring to it. For the non-Mumbaikars Mumbaikars would use this pharse ('Are you from Alibaug') in a condescending way implying people who were naive, stupid or just downright clueless.
I guess now it means the rich and the super-rich. Bloomberg reports
I guess now it means the rich and the super-rich. Bloomberg reports
India’s ‘Hamptons’ Lures Mumbai’s Rich, Economy Booms
The seaside town of Alibaug, founded about 300 years ago when India vied with China to be the world’s largest economy, is experiencing a rebirth as Mumbai’s growing number of rich people seek holiday retreats in the region.
About 18 miles south of bustling Mumbai by ferry, the area’s conversion into a playground for India’s rich and famous -- including billionaires Mukesh Ambani and Lakshmi Mittal, and cricketer Sachin Tendulkar -- reflects surging wealth in the world’s fastest-growing major economy behind China. India’s wealthy may almost double assets to $6.4 trillion over the next five years, Credit Suisse Group AG said in October.
Prices in the Alibaug region have doubled over the past three years, luring companies such as Peninsula Land Ltd. to build holiday retreats along pristine beaches and amid paddyfields, plantations and forests. Mumbai-based developer Orbit Corp. is among them, selling 20,000 square-foot seafront villas for 250 million rupees ($5.5 million) in a nation where the per capita income last year was 46,492 rupees.
The region is “like the Hamptons,” said Pujit Aggarwal, chairman of Orbit. “People who have spare change buy a house in the Hamptons, likewise people from Mumbai are buying weekend homes in Alibaug, which will become first homes when infrastructure improves.”
Alibaug, on the coast of the Arabian Sea in the western state of Maharashtra, was developed in the 17th century by an admiral of Shivaji Bhosle, a king who founded the Maratha Empire that encompassed most of south Asia. The town had a population of 19,491, according to a 2001 government survey.
The Hamptons is a group of upscale beachfront communities on the eastern end of Long Island, about 75 miles from Manhattan, known as a retreat for financiers and celebrities. Average home prices in the Hamptons jumped 20 percent to $1.9 million in the fourth quarter from a year earlier.
Coastal Damage
Concerns about coastal damage and disagreements between government agencies on setting up infrastructure may hamper development of the Alibaug region.
“The lack of better connectivity has already begun impacting sentiment in this market,” said Anuj Puri, chairman at the Indian unit of Chicago-based property broker Jones Lang LaSalle Inc. “Property prices have reached high levels on the power of speculation.”
A cluster of sea-front bungalows was demolished last year for breaching coastal regulations and building on agricultural land. Buyers of such land in the region must covert the land title before building homes, according to government rules.
Villagers in the region are protesting the destruction of mangroves along the coast and have filed complaints with the state government authorities.
Surging Growth
India’s gross domestic product expanded by 8 percent in the year ended March 31, 2010, from a year earlier, faster than the 7.4 percent growth pace that was forecast, the statistics office said on Jan. 31. The International Monetary Fund expects the south Asian economy to grow 8.75 percent in the fiscal year ending March 31, 2011, and 8 percent the following year.
Mumbai, occupying an area of 440 square kilometers (167 square miles), is bursting at its seams with half of its 18 million residents living in slums. Moving across the shores to Alibaug might make financial sense: a 4,000 square foot villa in the coastal town costs about 40 million rupees, a fifth the price of a similar sized apartment in south Mumbai.
“Mumbai city has hardly got any space, so we need to identify new growth nodes,” says Orbit’s Aggarwal. “Alibaug is one such growth node because of its proximity to Mumbai. It’s a good investment; once it becomes a first home, the value will jump by three-and-a-half times.”
Mumbai Boom
Home prices in Mumbai, India’s most expensive property market, have surpassed their 2007 peaks, climbing as much as 25 percent since April, according to a December report by IIFL Ltd. London-based property consultant Knight Frank LLP says the Alibaug region could well become a first home option for Mumbai residents and an extended suburb of South Mumbai in seven to 10 years if the infrastructure is improved by adding all-weather ferries and multiple jetty points.
Land prices in Alibaug vary across the region. A property with a sea view can cost as much as 60 million rupees an acre, while agricultural land in the hinterland would be priced lower at 4 million rupees an acre, according to Jones Lang LaSalle.
Peninsula Land, an Indian developer backed by Franklin Templeton Investments, and Samira Habitats plan to develop a 2 million square foot township. Three-fourths of the project will consist of luxury residential villas and condominiums, the companies said in October. Orbit is constructing villas starting at 40 million rupees and plans to develop 11 million square feet in a 200-acre gated community, while Mumbai-based Disha Direct Marketing Services Pvt. is building apartments and row houses.
Government Plans
Squabbling between government agencies on implementing infrastructure projects in the region has led to delays and curtailed development. A six-lane sea bridge that will connect the island city to the mainland has been delayed for the past few years because of a feud between two government agencies over rights to build it.
The Mandwa area in Alibaug is accessible by a 15-minute speedboat ride from Mumbai. That route isn’t available during the three-month monsoon rain season, which runs from June to September, forcing visitors to the town to take a three-hour car ride along 120 kilometers (75 miles) of road from Mumbai.
Alibaug needs to build a barrier that protects the harbor from the full impact of waves, which will make it accessible by boats throughout the year, said Sameer Nerurkar, founder and managing director of Samira Habitats, the real estate company developing 560 acres of the 2,200 acres it plans to develop in the coastal region.
The government aims to upgrade the infrastructure. The Mumbai Metropolitan Region Development Authority plans to invite tenders for the eastern waterways project, which will include a roll-on, roll-off service to ferry people and vehicles between Mumbai’s dockland and the jetty near Alibaug. The government is also planning to build a marina at Mandwa, a railroad, and a sea-link, which will cut travel time by road to an hour and fifteen minutes from three hours, said Orbit’s Agarwal.
“The Alibaug property market is quite illiquid,” said Mumbai-based Anand Narayanan, India director at Knight Frank. “I would say Alibaug isn’t a great investment destination, but a lifestyle choice, and lifestyle choices are never cheap.”
The seaside town of Alibaug, founded about 300 years ago when India vied with China to be the world’s largest economy, is experiencing a rebirth as Mumbai’s growing number of rich people seek holiday retreats in the region.
About 18 miles south of bustling Mumbai by ferry, the area’s conversion into a playground for India’s rich and famous -- including billionaires Mukesh Ambani and Lakshmi Mittal, and cricketer Sachin Tendulkar -- reflects surging wealth in the world’s fastest-growing major economy behind China. India’s wealthy may almost double assets to $6.4 trillion over the next five years, Credit Suisse Group AG said in October.
Prices in the Alibaug region have doubled over the past three years, luring companies such as Peninsula Land Ltd. to build holiday retreats along pristine beaches and amid paddyfields, plantations and forests. Mumbai-based developer Orbit Corp. is among them, selling 20,000 square-foot seafront villas for 250 million rupees ($5.5 million) in a nation where the per capita income last year was 46,492 rupees.
The region is “like the Hamptons,” said Pujit Aggarwal, chairman of Orbit. “People who have spare change buy a house in the Hamptons, likewise people from Mumbai are buying weekend homes in Alibaug, which will become first homes when infrastructure improves.”
Alibaug, on the coast of the Arabian Sea in the western state of Maharashtra, was developed in the 17th century by an admiral of Shivaji Bhosle, a king who founded the Maratha Empire that encompassed most of south Asia. The town had a population of 19,491, according to a 2001 government survey.
The Hamptons is a group of upscale beachfront communities on the eastern end of Long Island, about 75 miles from Manhattan, known as a retreat for financiers and celebrities. Average home prices in the Hamptons jumped 20 percent to $1.9 million in the fourth quarter from a year earlier.
Coastal Damage
Concerns about coastal damage and disagreements between government agencies on setting up infrastructure may hamper development of the Alibaug region.
“The lack of better connectivity has already begun impacting sentiment in this market,” said Anuj Puri, chairman at the Indian unit of Chicago-based property broker Jones Lang LaSalle Inc. “Property prices have reached high levels on the power of speculation.”
A cluster of sea-front bungalows was demolished last year for breaching coastal regulations and building on agricultural land. Buyers of such land in the region must covert the land title before building homes, according to government rules.
Villagers in the region are protesting the destruction of mangroves along the coast and have filed complaints with the state government authorities.
Surging Growth
India’s gross domestic product expanded by 8 percent in the year ended March 31, 2010, from a year earlier, faster than the 7.4 percent growth pace that was forecast, the statistics office said on Jan. 31. The International Monetary Fund expects the south Asian economy to grow 8.75 percent in the fiscal year ending March 31, 2011, and 8 percent the following year.
Mumbai, occupying an area of 440 square kilometers (167 square miles), is bursting at its seams with half of its 18 million residents living in slums. Moving across the shores to Alibaug might make financial sense: a 4,000 square foot villa in the coastal town costs about 40 million rupees, a fifth the price of a similar sized apartment in south Mumbai.
“Mumbai city has hardly got any space, so we need to identify new growth nodes,” says Orbit’s Aggarwal. “Alibaug is one such growth node because of its proximity to Mumbai. It’s a good investment; once it becomes a first home, the value will jump by three-and-a-half times.”
Mumbai Boom
Home prices in Mumbai, India’s most expensive property market, have surpassed their 2007 peaks, climbing as much as 25 percent since April, according to a December report by IIFL Ltd. London-based property consultant Knight Frank LLP says the Alibaug region could well become a first home option for Mumbai residents and an extended suburb of South Mumbai in seven to 10 years if the infrastructure is improved by adding all-weather ferries and multiple jetty points.
Land prices in Alibaug vary across the region. A property with a sea view can cost as much as 60 million rupees an acre, while agricultural land in the hinterland would be priced lower at 4 million rupees an acre, according to Jones Lang LaSalle.
Peninsula Land, an Indian developer backed by Franklin Templeton Investments, and Samira Habitats plan to develop a 2 million square foot township. Three-fourths of the project will consist of luxury residential villas and condominiums, the companies said in October. Orbit is constructing villas starting at 40 million rupees and plans to develop 11 million square feet in a 200-acre gated community, while Mumbai-based Disha Direct Marketing Services Pvt. is building apartments and row houses.
Government Plans
Squabbling between government agencies on implementing infrastructure projects in the region has led to delays and curtailed development. A six-lane sea bridge that will connect the island city to the mainland has been delayed for the past few years because of a feud between two government agencies over rights to build it.
The Mandwa area in Alibaug is accessible by a 15-minute speedboat ride from Mumbai. That route isn’t available during the three-month monsoon rain season, which runs from June to September, forcing visitors to the town to take a three-hour car ride along 120 kilometers (75 miles) of road from Mumbai.
Alibaug needs to build a barrier that protects the harbor from the full impact of waves, which will make it accessible by boats throughout the year, said Sameer Nerurkar, founder and managing director of Samira Habitats, the real estate company developing 560 acres of the 2,200 acres it plans to develop in the coastal region.
The government aims to upgrade the infrastructure. The Mumbai Metropolitan Region Development Authority plans to invite tenders for the eastern waterways project, which will include a roll-on, roll-off service to ferry people and vehicles between Mumbai’s dockland and the jetty near Alibaug. The government is also planning to build a marina at Mandwa, a railroad, and a sea-link, which will cut travel time by road to an hour and fifteen minutes from three hours, said Orbit’s Agarwal.
“The Alibaug property market is quite illiquid,” said Mumbai-based Anand Narayanan, India director at Knight Frank. “I would say Alibaug isn’t a great investment destination, but a lifestyle choice, and lifestyle choices are never cheap.”
67 comments:
eff that...how about the caribbean islands?
http://www.portocupecoy.com/
Another cock and bull story..promoted by dream sellers!!
Watch out! Do not get suckered!! Otherwise, people might really say - arre ye kya kiya? Alibaug se aaya hai kya??
Sorry, I posted in previous thread, but know that previous threads die out (from my past experience in this blog, so reposting here):
"If Sensex earnings are 1000 and at 18,000 it is available at PE 18, would you buy today or wait for earnings to go to 1200 so that 18,000 becomes PE 15 (and take whatever multiple you like plus add the scenario Desi Batman is waiting for where he would buy when sensex is available free and he is paid cash to trade)."
I would take a call on future earning potential and interest rate to justify PE.
For 5% bank FD return, I would buy stock at PE of 20. For 10% FD return available, I would buy stock at PE of 10. For 15% FD return, I would buy stock at PE of 7.5.
If returns and margins are high (>20%), I would buy at PE of 20. If forward PE is currently at 18, and margins seem likely to be affected by raw material inflation, I would hold at much lower PE of 12.
Current juncture, keeping next 6 month earnings and FD rates in mind, Nifty PE of no more than 10-12 is justified.
I had already sold in Nov and Jan when stocks were high.
I will get back into stock market after few (6) months at PE of 10-12
Anon above:
why did you not buy a house when the prices were low :-)
Lots of Anons have 2 or more house, they are all waiting for their next one when their is a downturn. Junst the right window of oppertunity.
Housing project proposals witness 50% drop in Mumbai
The lukewarm response to the real estate market amid skyrocketing prices has resulted in a 50% drop in new housing project proposals in the city in the past year. The building proposal department received 22 proposals in December 2010 as against 44 in January that year, according to data collected by the Brihanmumbai Municipal Corporation (BMC).
The number of proposals stood at 46 for February and 44, 38, 49, 31, 38 and 40 for March, April, May, June, July and August, respectively. The figures for September, October and November were 21, 29 and 27, respectively.
Sources said developers are playing it safe and not launching as many projects because of the lukewarm response to the real estate market. “Earlier, each developer would create 500 houses. Now, they are playing with a small volume. It helps to mitigate the losses. This could be the reason for developers not willing to submit more proposals,” said Kaustav Roy, executive director, Cushman and Wakefield.
He said the reasons for the declining number of proposals could be that the developers are facing monetary constrains, shortage of sand, rise in construction cost and the administration delaying the procedure.
“It will have adverse affect on the supply of houses. Prices of houses may also go up in the coming days. To bring back normalcy, there should be a healthy relationship between the developers and BMC for the larger interest of the city,” Roy said.
@10.53
I did buy in 2009 - Got around 70% appreciation so far.
I did it despite all the negative advice I got from this blog's comments (Vulture, Vic et al)
I can guarantee India will have its financial crisis
India seems to have missed the last economic depression. Did we do something right?
One reason is that most of the banks here were not exposed to many of the instruments that caused the problem. That is a good thing. Does that mean we can pat ourselves on the back and say we have a safe system? Can we argue that we don’t have bubbles here? Just look at real estate here! We know that Indians are prone to bubbles, we know Indians love to speculate, we love to gamble. At some point, I can guarantee there will be a financial crisis in this country. I don’t know when, but I know it will happen.
Anon @9:10PM:
I did buy in 2009 - Got around 70% appreciation so far.
I did it despite all the negative advice I got from this blog's comments (Vulture, Vic et al)
I think you'll realise in the next few years that you were the biggest fool. I would say that since you are making 70% on your investment, sell it and realise the gain. Otherwise all paper money is going to evaporate.
Moreover, when you go to sell it, you may not find buyers easily now. That 70% you are saying may not be real. I think people have made close to 25% in the last 2 years and not 70%.
Shailesh:
India's financial crisis is coming sooner than later as foreign investors are dumping India growth story and their investments in India.
USA will keep printing and QE3 is in talks now. Which means more inflation in all over world. I'm more worried about an Egypt like situation in India and China. China is blocking all Egypt news for Chinese. They are very scared.
I've shorted all my ETFs from India and getting out money from mutual funds. India's financial crisis is going to be really bad for at least 5 years.
As regards to why India survived in 2008, the GOI has been also printing money like crazy and massive stimulus. They reduced the interest rates by 450 basis points in one day. All that was happening was carry trade in currency and westerners wanted return for a year or two. Now they are exiting leaving India to deal with inflation and housing bubble crisis.
Once the downfall picks up, there would be increase in unemployment, GOI will try to reduce rates again for growth but the US printing of money will keep commodities high. India will have to increase rates to avoid another Egypt in India. I'm very scared that people in India may get to streets as they are pissed off with unemployment and inflation even now. Look at the train accident that happened 2 days back. Unemployment rate in India is 20% and that is just official figure. It is as high as 40%. India has a growing young population with no jobs. Same as Egypt.
The words 'foreign investors' are indeed local guys indulged in money laundering. It is unlikely that this source is going to die down. If not real estate, it is going to be some other sort of investment.
Now coming to real estate, the fundamental cause of increasing prices is Supply Demand. In Mumbai, scarcity of land has slowed down new buildings but prices for the existing ones are on the increase. Therefore, if one wants shelter on his head, it is prudent to explore buying home outside the city while renting while working in the city. One may wonder why a guy rents his place costing 1 crore to a mere 20,000 rs p.m. The reason is simple. He does't care. He is a hoarder.
Ali baug is a nice place to live. If you have money, buy a 20 cent plot and construct a home.
Patil,
Foreign investors were black money folks but that accounts for only 5%of the foreign money coming in. If they had a major share, the stock market wouldn't have gone down by 10%+ January.
Just knowing supply/demand curve doesn't help. It is a lot more to economics than that.
I would never touch real estate till the prices dip and make financial sense. All this nonsense created by builders/banksters is unfolding now. If you want to buy, buy more.
It is your money. If it goes up, you make money. I'll invest only when it makes financial sense as mine is hard earned money not stolen black money. I'm a happy renter. Let the theives park their money in RE and the day is not far when the chicken will come home to roost.
Black money list revealed, 15 Indians named - The Times of India
The list released by the magazine includes the names of
1. Manoj Dhupelia
2. Rupal Dhupelia
3. Mohan Dhupelia
4. Hasmukh Gandhi
5. Chintan Gandhi
6. Dilip Mehta
7. Arun Mehta
8. Arun Kochar
9. Gunwanti Mehta
10. Rajnikant Mehta
11. Prabodh Mehta
12. Ashok Jaipuria
13. Raj Foundation
14. Urvashi Foundation
15. Ambrunova Trust
People who read Vulture’s comment carefully on 29 July 2009 post, there was a hint. All intelligent readers understood the changing scenario & acted.
Vulture.
“OTTAWA - A new report predicts that Canada’s housing market is poised for a collapse and is only waiting for the trigger of rising interest rates expected for later this year — a view that flies in the face of many other forecasts.
Capital Economics calculates Canadian home prices could fall by about 25 per cent — and even as much as 35 per cent — over the next three years once the Bank of Canada begins tightening monetary policy.”
@6.05
Already sold my plot and flat.
Money already in pocket.
Some people talk a lot and call other people fools. Many dont own the roof over their heads
Some people hear out this foolish chatter, figure out what this means, own three flats and keep laughing all the way to the bank - over and over again.
Ha Ha Ha.
@Anonymous 8:54PM & 9:32PM
Your comments are not only irrelevant but foolish too . What has canada to do with Indian real estate. Are you comparing Canada with India. Dear Sir, we need another 200 years to reach their current living standards. Maybe even more.
As for the Anonymous 9:32, I guess you are a kid mentally. Whatever, please aviod penning bullshit in this serious blog.
Patil Saab, Tumala duniya chi khabar aahe kay?
Canada has huge resource reserves. It has largest natural gas reserves and it very large oil reserve in tarlands. It has only 1/10th population. All its citizens have much better safety net with retirement and health benefits. Even a country such as that can get into trouble, you think India is safer !!! Canada has real estate bubble, but nothing compared to Indian cities like Mumbai. The real estate market is much more liquid. Canadian bubble is popping, India is not far behind. Remember, there is no sub-prime in Canada.
No takers for 25,000 new flats in Mumbai
The number of unsold flats in Mumbai has shot up to 25,000 in the last one year as property rates have gone through the roof, a survey has revealed. The survey of 2,400 realty projects, conducted by real estate research firm Liasas Foras, says there were 16,500 unsold flats in the city in 2009, and
the rise in numbers indicates that buyers may continue to stay away from the market till prices ease.
In the entire Mumbai Metrop-olitan Region (MMR), which, apart from the city, includes areas such as Navi Mumbai, Thane and Mira-Bhayander, there are no takers for 88,000 flats as of now. This figure, too, is a jump from 68,000 in 2009.
Sales in the city from October to December 2010 dropped to 1,900 from 2,600 for the corresponding period in 2009.
Property prices in the city went up by as much as 40% last year. They have now reached such levels that there are few flats costing less than Rs 1 crore. Even distant suburbs such as Mulund and Borivli command very high rates, making housing unaffordable for the middle-class.
Discount offers are already being made. Sandeep Reddy, founder of Groffr.com, a website that offers discounts, said, “Builders are giving discounts but after a lot of haggling. Prices will come down in the coming months.”
Mr. Patil,
If we need 200 more years to reach standard of living of Canada, then why are the RE prices more than Canada? They should also be same after 200 years and now they should be as per Indian standards.
@ Patil
I'd rather be a kid with money than a "serious" blogger who doesnt know how to make money and discourages others from making it.
The more the doom-gloom chatter on this RE blog, more is my index barometer indicate that market is bottomed out.
Currently discussion level here is is low - market is high - time to sell and get out of RE market.
Even silly blogs like this have a use
@ Patil
PS
I initially commented in reply to a previous thread on PE rates
Someone asked me why I did not buy when prices were low. I said I did and said I made 70% profit.
Someone else told me I was a fool and it was the worst mistake of my life.
I told him I had already sold and made my money.
Now you say I write bullshit on a "serious" blog.
Thank you
What I know about canada is from newspapers and wikipedia. I've never been there and can't afford foreign travel. What I don't understand is why some of you bring the name of prosperous countries in this blog and make comparisons. Why the real estate prices are high though majority of the population is poor, is due to uneven distribution of wealth. Just look at Mumbai. 80% of the population lives on streets or dilapidated hutments/chawls, 15% in substandard multistoried buildings, and 5% in multi million rupee apartments/bungalows. Our social system, government are totally corrupt.
What I was saying in my previous blog is that to pen your views like grown up and realistic people. While comparing, make realistic comparisons, not to people like ambanis or tatas. Leave the western countries out of this blog and stop mocking people like kids
It’s Easier to Be Brilliant than Right
Very interesting article.
“Isaac Newton was possibly the most brilliant mind ever. But when it came to the financial bubble of his day, the South Sea Company bubble of 1720, he displayed Ed Bottum’s rule. He was an early investor in South Sea stock, doubled his money, and sold out. The stock went on up, and Newton bought back in, only to suffer large losses when the bubble collapsed. He wrote disgustedly, “I can calculate the motions of the heavenly bodies, but not the madness of people.”
“But in finance, in contrast, this allows new generations to repeat the errors of previous ones.”
Vulture
Link for above ....
http://www.american.com/archive/2010/september/it2019s-easier-to-be-brilliant-than-right?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+American+%28AMERICAN.COM+--+A+
Anon @9:48 PM
If your index barometer is reliable, why don’t you share the details about it?
If you can share you index model it will increase the discussion level.
Also provide the bottoms out details with example city & project or location.
Thanks in advance.
Real estate prices are very high in mumbai. wouldn't it make more sense to them to convert it to dollars and move to the US. They would be able to live in a mansion sized house and place the rest of the money in fixed steady investments. Many people with several flats in mumbai could easily convert (by moving to US) to a 4000 or 5000 square foot house and earn 200,000 dollars a year in stable investments.
it's funny how one of my relatives (in gujarat) has 10 crore worth properties through investments and has the quality of life like someone living in a hut. he has a car that he paid only 60,000 rupees for (no ac, very small, very loud, very slow). oh and by the way, he didn't even finish high school.
Ultimately, if you can't do anything with your money, there is no point in earning money.
anon@2:28pm
Is there any wonder that Indias money is wasting in banks abroad?
@10.36
This is a one sided blog - only doom/gloomers are encouraged here.
There are other groups where there is better info.
Currently, every indicator is pointing to RE slowdown for the next year at least. Activity in this blog is also down from 100 posts in a week to just 20-30 comments which are coming every 2 weeks.
Clearly too many people following RE markets are optimistic and/or have already bought.
RE cycle should be due for bull upmove only in 2015 or so. After 2008 bear market, we have had an intermediate uptrend which seems to have peaked. Now downtrend/flat is likely for at least one year.
Better to wait before committing capital.
"If we need 200 more years to reach standard of living of Canada, then why are the RE prices more than Canada?"
Another misinformed soul.
What is standard of living? It is not a black or white thing. It is made up of several things. For example, here is my list in order of priorities:
1. Good decent neighborhood.
2. Full power backup.
3. Good accessibility.
4. Near to places like office, schools, hospitals, malls and parks.
5. Other amenities like piped gas, laundromat, gym and recreational facilities in the complex.
In traditional Indian household, you have none of those things. So if someone offers you only one of these things - say full power backup - would you pay a little extra? You would. Someone else with deeper pockets may be willing to pay even more and so on. We have very very few aptt. with all the facilities listed above and a lot of people who can pay so that's why prices are high.
Just because 40Cr. people in India earn like less than a dollar a day, should Mukesh Ambani not enjoy his 20 storied mansion?
- V
Although there are so many links posted here that suggest the RE prices will go down, there are no posters who say they have bought a house for less than last year / month price in the same locality.
Are the prices really going to go down?
What if the builders stop or slow the construction if the prices really go down say by 20%?
Won't there be less of supply against the demand?
Somewhere in these posts I have already seen the link which says new project registration has dropped by 50 % that means future suplly is reduced.
I am not trying to be against the bloggers here but thinking what could be buiilders stratergy for making sure the prices don't drop.
@Anonymous above
Very few people can afford houses in Mumbai at the prevailing prices. I sincerely believe that the prices are unlikely to go down. You wont find people bought/sold houses in this blog as they are wealthy and not fishing around. Black money is just like parallel economy and is driving the price high. If you look at the inflation and commodity prices, the rise in home prices is proportional. The other factor is demand exceeds supply
Our only hope is to move to villages or live in hutments. In Mumbai will be the biggest hutment city in the world and it is going to have the distinction of having multistory towers surrounded by hutments. Those with money will be forced buy air purifier to block the human excrement stench as government has bo plans to build toilets to cater for the rising population
The above 2 posters:
If you guys are so sure, why don't you buy more flats and speculate.
I'll wait to buy or never buy as it makes no financial sense. This whole RE market is in nonsense mode. I'll always rent and save my money for future and maintain my flexibility. My family doesn't care if we buy or not as long as we have earned liquidity and no stolen or black money.
***Those with money will be forced buy air purifier to block the human excrement stench as government has bo plans to build toilets to cater for the rising population
Mumbaites are ingenious. whenever the electricity, cable companies, water department dig holes for repair or maintenance, People use these holes as toilets. The more holes are dug, less crap you find on the pavement. To solve the toilet problem, mumbai municipality should dig holes in the ground wherever possible.
As for the smell, people in mumbai are totally immune. Without it, they may not be able to live.
Patil Saab, can you please suggest this to your shaka pramukh and suggest this to Ms. Sharada Jadav, mayor of mumbai and HE Balasaheb Thakrey. Who knows, they may name a important road after you for this great idea
It cannot get worse for real estate
Some new projects sold only five units last quarter, rest sold one or none at all; experts hint at correction in prices
Mumbai’s real estate is said to be hot property. However, in the last quarter, sales have dipped so low that builders are getting worried.
Property research firm Liases Foras that surveyed 2,300 projects in the Mumbai Metropolitan Region (MMR) between October 2010 and December 2010 reports that less than four million sq feet of new residential space was sold every month.
A total of only 10.61 million sq feet was sold in three months. Assuming that the average apartment size was 1,100 sq feet, it means less than 3,300 houses were sold per month.
“Last year at this time, we were flooded with calls. However, inquiries have dropped substantially now. I cannot go against the market trend and reduce my rate to Rs 7,500 per sq feet in Malad when the next project is selling at Rs 11,000 per sq feet.
Ambar Maheshwari, Head of Investment Advisory, DTZ (an international property consultancy firm), said, “Sales are going down primarily because prices at the current levels are unsustainable.
There will be a certain amount of correction in prices, but mainly in the form of deals taking place 10-15 per cent lower than the sticker price. If that is done, sales will pick up to some extent. But I don’t see a correction greater than that in the next six months.”
Anon @9:48 PM
What happen to barometer? Is it still working?
Thanks.
2 comments in 2 days = Barometer is falling. Storm should follow.
My personal bet: Unitech will collapse with arrests on their telecom scam/ licence return/ disgorgement of profit
Rest of the RE market will follow suit. DB realty already in deep sh**
Time frame - 6 months i.e. before August. Then monsoon will start and RE will melt.
OR - monsoon will not start and RE will melt more.
Either way, keep your money ready to book in Aug-Sept 2011 when nadir will be reached
and booking at lowest levels
August-September seems to be auspicious time for "Honest" Singh's government to fall as well. Political uncertainty will bring all the "bull" sentiment of last few years down. The "bull" is in both senses ...
Makaan.com launches India's first Buy vs. Rent Index (MBRI)
How to interpret MBRI?
MBRI of 1-20: This denotes that it is much less expensive to buy a home than to stay on rental, in these cities / sub-cities. Property seekers looking at investing here are advised to buy a property than staying on rentals.
MBRI of 21-25: This denotes that it is relatively more expensive to buy a home than to stay on rental, in these cities / sub-cities. This is a neutral range and property seekers looking at investing here are advised to take the final decision based on their financial situation.
MBRI of 25+: This denotes that it is much more expensive to buy a home than to stay on rental, in these cities / sub-cities. Property seekers looking at investing here are advised to rent a property rather than buying.
Interpretation of MBRI
Let's look at the MBRI data for Chennai (16) and Ahmedabad (18) and compare that with MBRI for Mumbai (25) and Delhi (28). A lower MBRI for Chennai and Ahmedabad indicates that it is less expensive to buy a property here than to stay on rent. Let us take an example to understand the MBRI dynamics with-in a city, if you look at Delhi NCR, we find that MBRI for Gurgaon, Faridabad & Noida is 17, 18 & 19 respectively, indicating that property seekers will be better off buying a property in these sub-cities rather than staying on rent. This also indicates that the rentals in these sub-cities are higher when compared with the prevailing capital values. On the other hand, MBRI for Delhi East, Delhi North & Dwarka is 37, 38 & 42 respectively, indicating that one should prefer to stay on rent rather than buying a property here. High MBRI also indicate lower rental value when compared with the capital value of property. Similar interpretation can be drawn for other cities / sub-cities.
Looks like Sensex is going down another 20% in the next month or so. Major bubble in stocks is bursting. And all this India growth story seems to be a hype.
Next is RE. It will take 10 years for RE to come back to its normal form. I'm guessing at least 50% fall in prices for RE. Some banks will also fail soon. The whole economy has been made a joke.
Not sure how much stock markets will fall or how much RE will correct. But one thing is for sure - UPA is not coming back to power. The next 2-3 years of UPA rule is going to make the much talked about "aam aadmi" bleed dry to death.
Right from harshad mehta scam to most recent scams, stock market has seen worst and nothing changed in India. All doom and gloom scenerios never occured. India moved on to next level.
Come of out your fantasy.
Anon above:
This time it is different. Look at the magnitude of fraud. Look at the whole RE scam. It will go bust and India will see its own financial crisis that would last for years to come. India has overextended itself and the current RE prices are that of year 2025.
anon above:
If investigation and judicial results of scams will be different then it will be different this time. But it is not. Quantity has change but quality is still the same shit.
RE has huge support and backing of black money and scams.
If places like Alibaug are prospering what do you think of stinking Bombay and Delhi?
Recently had a chat with an accountant in Bombay, I was surprised to hear that many people are buying crores worth property with all downpayment.
and yes no one was complaining about food prices or any such inflation... most of the people are happy.
Don't worry, that is there that's why there would be a correction. Govt. will not be able to do anything if the deficit increases and Sensex goes down. Govt. would have to worry about how to pay salaries of Govt. employees. They will not get money easily by selling bonds to outsiders.
Time for new article.
yes, time for new article and same old ranting.
Thanks for sharing, I will bookmark and be back again
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life in alibag is good as long as you are in yr bungalow and not on roads,locals are lazy and wont work,this country is Ram Barsosay,too much black money raising prices of property which is not worth.
Mumbai is the the most overrated city,it is actually a shit pit why the hype n property prices rising is too much black money generated by goons turned politicians masquerading as builders pump shit loads of money into anything,raising prices of areas not worth for human existense.
i see mumbai goingt to the dogs n beyond,god bless people who stay in mumbai
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