Article Link
Inflation in Asia may be under control now, but prices across the region could soon start to creep higher, with India and Southeast Asia the most vulnerable, warns independent economist Andy Xie.
"At the end of the day, you have all this money out there. It's rational to expect inflation," Xie, a former chief Asia-Pacific economist with Morgan Stanley, said. "India is the most vulnerable. It cannot solve supply bottlenecks. Southeast Asian economies like Indonesia and Thailand too."
Inflation in India could rise to 10 percent and above 5 percent in Southeast Asia, according to Xie. He expects inflation in China to rise to 4 percent - doubling from where it is now.
High inflation in India meanwhile dogged the country's central bank last year and prevented it from cutting interest rates aggressively to boost a flagging economy. India's wholesale price index, the main measure of inflation, rose 7.24 percent in November from a year earlier.
--
"In Hong Kong and Singapore, the issue is very much about interest rates. So it's going to be similar to 1998," he added, referring to the property bubble that burst at the peak of the Asian financial crisis.
House prices in the two cities could plunge by half if interest rates go up, he added.
--
What will this do to Home Prices in India ????
Inflation in Asia may be under control now, but prices across the region could soon start to creep higher, with India and Southeast Asia the most vulnerable, warns independent economist Andy Xie.
"At the end of the day, you have all this money out there. It's rational to expect inflation," Xie, a former chief Asia-Pacific economist with Morgan Stanley, said. "India is the most vulnerable. It cannot solve supply bottlenecks. Southeast Asian economies like Indonesia and Thailand too."
Inflation in India could rise to 10 percent and above 5 percent in Southeast Asia, according to Xie. He expects inflation in China to rise to 4 percent - doubling from where it is now.
High inflation in India meanwhile dogged the country's central bank last year and prevented it from cutting interest rates aggressively to boost a flagging economy. India's wholesale price index, the main measure of inflation, rose 7.24 percent in November from a year earlier.
--
"In Hong Kong and Singapore, the issue is very much about interest rates. So it's going to be similar to 1998," he added, referring to the property bubble that burst at the peak of the Asian financial crisis.
House prices in the two cities could plunge by half if interest rates go up, he added.
--
What will this do to Home Prices in India ????
85 comments:
Any idea why this is not a big news in India?
http://www.thehindu.com/news/national/5-billion-worth-us-bonds-seized-in-raids/article4266146.ece
RE prices will move upward because job market here in India is not showing any signs of slow-down or decline. If there are some visible job declines in IT and Auto only then you can expect some 5-10% decline in RE prices. Else keep dreaming. Prices may not increase at the same pace of last few years but will move upward for sure.
@Anon - "Any idea why this is not a big news in India? http://www.thehindu.com/news/national/5-billion-worth-us-bonds-seized-in-raids/article4266146.ece"
In all probability they are fake. A year or two ago, the swiss customs agent caught some Italians with some 10-20Billion dollars worth of bonds that turned out be fake.
@Dreamer - "Prices may not increase at the same pace of last few years but will move upward for sure."
But will they move up faster than inflation?
http://profit.ndtv.com/videos/the-property-show/video-will-housing-prices-continue-to-rise-in-2013-259811?pfrom=home-opinions
To the moron poster, why are you putting links to existing articles. Just shutdown the blog and stop wasting the internet
I have no idea why it's not a big news. Maybe because people don't understand it's implications (if the bonds are genuine)
http://timesofindia.indiatimes.com/tech/careers/job-trends/Infosys-cutting-up-to-5000-jobs-Sources/articleshow/17882204.cms
Infosys cutting upto 5000 jobs
From the article
BANGALORE: Infosys has begun sacking employees at the bottom of the performance pile, returning to a practice it adopted during the peak of the global economic crisis in 2008 and 2009, according to people familiar with the development.
Yup no slowdown here, move along.
Correction to the above : Infy has now issued a denial
Interview with SBI chairman - http://www.business-standard.com/india/news/lunchbs-pratip-chaudhuri/494389/
From the article - "The biggest challenge, he thinks, is that people have started fearing lack of demand and are not investing. The pipeline is almost dry for new corporate loans as no new projects are coming up. “Big companies can withstand the slack for one more year, but their suppliers may not. If the visibility for demand remains poor, companies could start rationalising new project divisions, leading to job losses. That is when it will really start hurting,” he adds."
RE prices will move upward because job market here in India is not showing any signs of slow-down or decline. If there are some visible job declines in IT and Auto only then you can expect some 5-10% decline in RE prices. Else keep dreaming. Prices may not increase at the same pace of last few years but will move upward for sure
Agree 100%. If there are sheep to fleece the builders will continue to keep prices inflated.
If there is 0 sales for a couple of quarters, this party will be over real soon. And this scenario is not going to happen as long as hiring for good paying jobs (read IT) and pay hikes continue.
If economic inflation doesn't get you, inflation in crime will.
What's the point in spending crores when half our families (mother, wife, daughter / daugther-in-law) will be subject to constant harrassment.
Physical safety is important too, even more important than economic safety and living in multi-crore flats surrounded by filth is a recipe for disaster in a fragile society such as India.
whole world will fill the jitters, but not the Indian property market. Folks, you have CEO's, Ex Silicon Valley guys from San Fran sitting in Bangalore with millions, we are not talking 10 million, we are talking 100's of million, then you add the politicians and other coke sucker who milk the system, and you have a non property bubble in India. Price not going to go up, and it will not go down much. 99% of the folks will suffer, but these coke suckers will not take a hit.
Cities have no electricity, pollution all over the place, trash everywhere, hospitals all crowded, and a booming population. Not looking good for majority of the folks for the next 50 years.
left my job, bought 2 properties today. hoping to double in 2 years.
^ anon : So you are going to sit and watch value of your assets increasing everyday? Wow that's great. I hope you have enough money to go through the next 2 years until your assets double.
All the best.
anon @5:48pm
As long as the peasants stomachs are full, they will pay through the nose for everything else.
No Arab spring in India.
Thanks for your post, its really nice that you share such knowledge here.
Seeing todays condition i suggest its best time to invest in real estate so that you can relax in future when price uplifts. There is service available on internet that provide nice deals and discounts on properties such as residential apartments, commercial apartments, shops on sale or lease. for details visit: http://www.indianprop.in/
Now the government suddenly woke up and try to make correct noises. After allowing the inflation to run amok through the country for the past 3-4 years, virtually spoiling all the economic parameters government is now trying to do damage control.
up to 20% fare hike in railways.
There will be huge hike in diesel ( That is what they say, finally if it comes 2-3 Rupees, we mango people will he happy, they knew that)
Now coming back to our favorite doomsday scenario, I see increasing symptoms for crash now:
1. Car sales growth is down to 2008-2009 level. Since this time, the slowdown is much more broad based I am sure it will go to negative in 2013. Some of the car companies may shut shop and go out from India.
2. IT companies are not doing any mass campus hiring like previous years and planning to do some namesake campus hiring only. Pipeline of business is not too great.
3.Since government is trying to augment resources at every level, ( tax hikes are possible) people will not spend much.
4. Real estate brokers ( brokers includes banks) cannot expect robust growth this year. I think 2013 may be the bust year for real estate
5. Stock market is gonna to crash which will bring real estate down with this. This year it would be interesting to see the sellers only market without any buyers both in shares and real estate. Stocks are already showing initial signs of reversal.
6. With Rupee at 55 against USD, if rate cut comes, it is not gonna to do any good to the government or RBI's reputation. Let RBI takes a decision. But for doomsday scenario whether rate cut or not, doomsday is gonna to come
7. With no new job openings, with no new avenues to make money ( we sold all natural resources already), and without any wage hikes how can we float ponzai schemes such as real estate etc?
Indian stock market is expensive, when you compare it to other countries, and it could go down 30%, but Real Estate price not going come down. All the ELites have have millions and millions of $$$$$$$ cash in the bank + they have real estate. EBAY trying to buy 5% stake in SNAPDEAL for 300 million dollars. I will bet you that atleast 50-100 million of those 300 million goes into some real estate deal.
@Anon - "EBAY trying to buy 5% stake in SNAPDEAL for 300 million dollars."
No. Eaby is trying to buy a 5% stake in SNAPDEAL that 'would value' it at 300 million. i.e Ebay will invest around 15 million for a 5% stake.
It does not mean that Snapdeal has 300 million to throw around. It is simply valued at that price.
@Anon - "Since government is trying to augment resources at every level, ( tax hikes are possible) people will not spend much."
Yes, expect tax hikes (both direct and indirect) in this budget.
Also the below article talks about the government now desperate to avoid a downgrade. If that does happen, interest rates will have to be high or higher to save the rupee.
(http://blogs.economictimes.indiatimes.com/YieldCurve/entry/is-a-downgrade-imminent-fare-hikes-and-tax-for-super-rich-suggest-that-it-may-be)
super rich that you mentioned is >12l !!
http://www.rediff.com/business/slide-show/slide-show-1-us-formula-to-tax-indias-super-rich/20130109.htm
Anyone else think that the number of spam comments from RE pimps on this site have increased lately ?
New Projects In Gurgaon,Gurgaon Real Estate Residential,Commercial,Industrial Property find here all kind of project details of Gurgaon.
Sooo true...good facts..thanks!!
gabion manufacturers
remember real estate prices will double every six months until you are no longer able to afford it. After that it wont matter.
@anon
remember real estate prices will double every six months until you are no longer able to afford it. After that it wont matter.
That is the reason for drop in traffic on this blog - it does not matter anymore.
The number of people buying the property have exhausted. Some people have bought 2-3 flats and paying the half of their EMIs through rent. One thing they are forgetting is to declare the flat is on rent and income through that. By not doing that they are making a financial crime as good as committed by builders while they take cash or cheque and do not report it income tax return (black money). Because as I remember correctly in Maharashtra you have to pay 25% of your rent income to municipal corporation as property tax. The rest 75% are supposed to be taxed as per the IT laws. So if you are being taxed in 30% tax bracket then your total of 47.5% of the income is gone (25% municipal + 30% of rest 75% =22.5%).
And even if you are lucky enough to get 4% of your property in rent you are left with 2.1% after paying all the taxes.
So you are left with appreciation of the property which is over longer term of 20+ years is just 10-13% CAGR in cities like mumbai and far lesser in 2nd tier cities.
Better to invest in MFs.
If you are property trader then you can gain in trading the properties but there is a danger of getting stuck in a wrong deal. And losses could be huge enough to wipe of all the previous gains.
Its Time!
Its Time!
Its Time!
For 10 years it was up,up,up
Next 10 years its time for DOWN DOWN DOWN
Read the article and i guess make a new thread
http://mobilepaper.timesofindia.com/mobile.aspx?article=yes&pageid=1§id=edid=&edlabel=MMIR&mydateHid=16-01-2013&pubname=Mirror+-+Mumbai&edname=&articleid=Ar00100&publabel=MM
It was common sense that it will happen sooner than later. I have seen enough to know that what goes up at a certain speed comes down at a faster speed.
It would be great to see Property Times(Mumbai) this saturday :) I believe it will be packed with price reductions
The above link - better viewing
http://epaper.timesofindia.com/Repository/ml.asp?Ref=TU1JUi8yMDEzLzAxLzE2I0FyMDAxMDA=&Mode=HTML&Locale=english-skin-custom&title=Builders blink, first price cuts are here
And even if you are lucky enough to get 4% of your property in rent you are left with 2.1% after paying all the taxes.
You should probably look the other way around. If the rental transaction is done with cash and you are in 30% tax bracket, your rental yield will increase to 5.2%. Make it 6.5% considering the income tax you save on home loan. And if anyone is noticing, rents have gone up at least 10% in Bangalore while home loan interest is dropping steadily thanks to Chidu. Looks like there might come a time with 8% interest on home loan and you have a 8% rental yield considering the above factors? Am I missing something?
nobody pays taxes in India, so do not worry about that problem. Infy is up over 50% from its low, TTM is almost at its 52 week high, Dr. Rdy is at its 52 week high. Top .0001% will cash out and buy more property. Laborers make 700rs per day, so if you want to construct a house, it wil cost you close to 1 crore.IT is what it is.
I don't think any of the salaried class pay rent by cash, they do by cheque and then claim tax deductions under HRA. So the statement that rents are taken in cash is not trued, at least for normal residential apartments, we are not talking about shops/jhuggi/jhopdis here. Commercial rents have actually softened in Mumbai due to the large vacant malls/office complexes/etc. although residential ones are up by 7-8% from last year tracking the inflation
What will this do to Home Prices in India ???? Yeah that’s the big question everyone is asking. Real estate experts are hopeful that in 2013 sales of properties will increase. New government policies in India for the real estate sector will be helpful in increasing sales. Prices in metros will continue to appreciate and even properties in Tier II cities will have capital value appreciation.
House in Gurgaon
In every Six Months price are getting doubled the rate. Real estate experts are hopeful that in 2013 sales of properties will increase. Competitor for Real Estate Property are increasing Day by day. Common man cant afford flats in cities like Mumbai, delhi etc anymore.
My Property Stores.
Hi,
You have given very nice post it is very knowledgable and result oriented.
We are Real Estate company in delhi, Real Estate company in nodia,Real Estate company in gurgaon,Real Estate company in agra,Real Estate company in mumbai.
Gowo Company in Delhi,Gowo company in Gurgaon, Gowo Company in Noida, Gowo Company in agra, Gowo company in mumbai
indian economy will slow down bigtime in 2014 and that will cause the stampede of people exiting realestate.So look forward to significant falls in price next year
Suresh
Surprisingly, while home prices seem like increasing in a steady manner, the home loans interest rate is slated to fall soon. That will encourage more home buyers to invest in real estate. But Indian economy is fairly stable, because of a strong core sector. We should be out of inflation soon.
Purple Realtors (One Stop Property Shop) is a Pune based Estate Agency, with a wide selection of properties in the Pune West area and a large client base, mainly through customer recommendation. Purchasing a property in a Pune can be a daunting experience;you
find yourself in unfamiliar territory with people you do not know, This is where Purple Realtors can help you.
Residential plots in Noida Extension are among the best properties worth investment in Delhi and NCR. Invest early to avoid the after effects of inflation.
good post thanks for sharing and lots of comments got this post.
Sikka The Downtown noida Extension
nice post sharing. Aldea Espanola Pune is new upcoming residential venture in pune.
Buy/Rent/Sale Property. Post your property. Post your Requirement. Find your dream house. Get best office place. Find property in your budget. Local agents on just a click. http://nanubhaiproperty.com/
Buy/Rent/Sale Property. Post your property. Post your Requirement. Find your dream house. Get best office place. Find property in your budget. Local agents on just a click. nanubhaiproperty.com
hi, your great post about india house and thanks for sharing!!
Prestige Group
Mumbai:The city of dreams offer various properties and real estate.You can get all the information about residential flats
and property rate in mumbai
I love to гead аbout thе finer pοints of these thingѕ, that's what makes this site stand out. Things other people forget.you can visit mumbai properties for detailed information.
Properties in Delhi NCR are well developed having good amenities.
Properties in Delhi
Rates of properties really getting high but still people are buying properties of there choices.
NanuBhaiProperty
Nice Properties are in Mumbai.
View Mumbai Properties
Gurgaon is hot cake,investing in property is very great for good return
huda auction commercial shops in sector 22 Gurgaon. highest price gone 1.60 cr for 150sqft area
Searching for the excellent chance to speculate in real estate sector in the Pattaya
We at clapdoor.com are seeing an uptick in traffic and queries from US, UK and Dubai as the Rupee's valuation has fallen. Some of weakness in the domestic market is definitely being offset by a surge in NRI investments.
I love it,Excellent article.I am decide to put this into use one of these days.Thank you for sharing this.To Your Success!
With close proximity to Navi Mumbai, a property in Dombivali will give you best of both world- affordable property and easy connectivity to the city. Contact us for any queries, we will be glad to offer you one solution for all your queries.
I read your article. This has more useful information about Real estate. Thank you.
By Land for Sale in Salem
It looks impressive and fresh. I really like your ideas. thanks for sharing these kind of ideas..
Visit 3d exterior rendering
Nice Blog Post!! Thanks for sharing these useful Information for us. I really like it. We are sharing some awesome information about real estate projects in ncr. If someone wants to buy commercial properties in Mohali with world class amenities and features.
Thanks for sharing the information it helps a lot. If your searching for Residential and Open plots for sale in Loyapally, Hyderabad. JJ Infra is the No.1 Real estate company for all real estate Investments.
Thanks for sharing the information it helps a lot. If your searching for Residential and Open plots for sale in Loyapally, Hyderabad. JJ Infra is the No.1 Real estate company for all real estate Investments.
Nice Blog Post!! Congratulate for sharing this useful Information about real estate projects. I really appreciate your effort in this blog. We are sharing some awesome information about real estate projects in ncr. If someone wants to purchase best commercial projects in Gurgaon with world class amenities and features.
Golden Triangle Tour With JaipurDuration : 3 Nights 4 Days Price on Requests Overview This is the shortest tour plan but with it; you are going to gain insights of the most favorable prominent sites such as Delhi, Agra, and Jaipur of North India.
RAHEJA SCO PLOTS SECTOR 88A GURGAON Market is a unique concept of Commercial Plots under Haryana Government's Commercial Plotted Colony Policy that comprises of commercial low-rise development that may be built over multiple floors in a Basement + Multiple Floors Shop cum Offices. It is available in densely populated sectors of Gurugram.
Technox Technologies is the best digital marketing Company in Coimbatore. It helps make your platform SEO friendly and enhance your web marketing through digitization. E-commerce platforms also require digital marketing and web strategies to drive traffic and sales. Social media marketing is one of the most powerful tools for growing your business and creating brand equity. Without digital marketing, few customers would recognize her website as a product, brand, or business. To survive on the Internet, you need digital marketing. A digital marketing company can help you gain a competitive edge and grow your business.
Brys Caves Resort in Uttarakhand is a breathtaking destination that will leave you awe-struck with its unique and luxurious cave-themed accommodation. Nestled amidst the lush greenery of the Himalayas, the resort is a perfect blend of luxury and natural beauty.
The resort features 37 elegantly designed rooms that are carved out of rock and beautifully adorned with modern amenities. href="https://www.bryscaves.com/
Thanks for sharing the relevant information with us…It are good tool for search blog comments rapidly.Get Digital Signature in Ahmadabad
Thanks for sharing such a great piece of information with us. Class 3 Digital Signature in Delhi
realestare
Silverglades Legacy located near the center of Gurgaon on Golf Course Extension Road and esteemed places like Medanta Hospital and Heritage School, Silverglades Legacy location offers unmatched convenience. Silverglades Legacy project aims to enhance your lifestyle through exceptional connectivity, and provide easy access to vibrant social and commercial areas. Facilities include superb amenities such as a swimming pool, fitness center, spa, theater, 24/7 water and electricity supply, security, CCTV surveillance and the floor plan has 3 BHK and 4 BHK apartments, as well as penthouses . The 3 BHK units are 2700 sq ft and the 4 BHK units are 3,700 sq ft, priced at ₹5.4 crore and Rs 7.4 crore respectively. Silverglades Legacy’s master plan covers 10.5 acres and features five soaring towers, each with G+35 rooms. In addition, the Silverglades Legacy Special Payment Plan follows a 30:40:30 formula: 30% of the total property value is paid before the unit is booked, 40% during the construction period and the remaining 30% during occupancy
Silverglades Legacy 63A is situated near Golf Course Extension Road in Gurugram. This location, which is close to major job centers, hospitals, schools, and parks, offers a well-rounded and delightful lifestyle. Silverglades 63A Gurgaon Pre-Launch Project, featuring ultra-luxurious design and smart home technologies, offers 3/4 BHK apartments and penthouses ranging in size from 2700 to 3700 sq. ft. Silverglades New Property prospective buyers will find affordable residential flats, where they may purchase three-bedroom units for Rs 5.4 crore and four-bedroom units for Rs 7.4 crore. Silverglades floor plan features open living areas, dining and kitchens, and it creates a sense of spaciousness and flexibility in the system. These apartments are spacious, providing plenty of space for gatherings with friends and family. In addition, they provide a comfortable environment in which residents can spend quality time with family.
Tarc Ishva Gurgaon Builder Ultra Luxurious High Rise Residencies
Tarc Ishva sector 63a gurgaon residential property is situated on the esteemed Golf Course Extension Road. It provides opulent three and four BHK apartments. The cost of a 3 BHK apartment is ₹7.5 Cr, while a 4 BHK apartment is ₹10 Cr and has a total area of 4000 sq. ft, hence tarc ishva 63a size provide ample space for luxury living. The 7-acre Tarc Ishva Plot offers a luxurious living environment with five high-rise towers. It has top-notch amenities, such as a cutting-edge clubhouse, pool, gym, and exquisitely designed gardens. The Tarc Ishva 63a gurgaon masterplan guarantees a low-density layout with lots of greenery, providing peace of mind amid opulent urban living. Tarc ishva gurgaon builder is The Anant raj corporation, renowned for its commitment to quality and excellence. Previous successful projects by TARC include Maceo Gurgaon, Tripundra, and Kailasa, all of which are known for their luxurious living standards and impeccable design.
Paras Manor Gwal Pahari Payment plan for Apartment Gurgaon
Paras Manor Gwal Pahari gurugram offers a flexible and structured payment plan for its luxurious 4 BHK apartments, each spanning 4750 sq. ft. and priced at ₹9.5 Cr. Paras quartier phase 2 payment plan process begins with a deposit as the booking amount to secure your apartment. Within 90 days, 25% of the total cost is due. Following this, a further 30% payment is required upon the completion of the 20th floor. The remaining 35% is payable at the time of applying for the Occupancy Certificate (OC), coinciding with possession in 2028. The masterplan spans 10 acres, including a 4.15-acre paras manor plot area and an adjoining 6-acre space from Paras Quartier. This expansive area allows for generous amenities and green spaces, enhancing the living experience. Paras the manor residential strategic location on the Gurgaon-Faridabad Highway provides easy access to major areas in Gurgaon and beyond, making it a prime investment opportunity.
https://whitecollarrealty.com/residential_property/paras-manor
Danube Diamondz 1 Bedroom Apartments Luxury Living Dubai
Danube Diamondz Luxury Residential development offers elegant one-bedroom apartments that are fully furnished by Danube homes. These flats are designed with meticulous attention to detail, providing a contemporary and comfortable lifestyle. Danube Diamondz 1 bedroom apartment spans 733 sq. ft. and is priced at AED 1.8 million, which translates to approximately ₹4.2 crore. Located in the prestigious Jumeirah Lake Towers (JLT), residents benefit from stunning views and proximity to key landmarks. The development enjoys a prime location near Creek Tower, adding to its appeal. Danube Diamondz developer is the Danube group in collaboration with DMCC, ensuring high standards of quality and luxury. The project is part of a master plan that features two interconnected towers, set on a 15-acre plot with 64 floors and extensive amenities. Download the Danube Diamondz brochure from our website to learn more.
https://whitecollarrealty.com/residential_property/danube-diamondz
Post a Comment