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greschennai · 28-08-10

I agree, in general, on the various points discussed.
1. Yes, first home buyers (incl. those having total monthly income of around 80k-1 lac) are looking at max of 50-60 lacs apartments. So, any property above say Rs.75 lacs is bought by NRIs / HNIs / Investors for investments and monthly rental return purpose.
2. Unfortunately, when prime areas in city become costlier through every transaction, its impact is felt in neiboughoods and suburbs eventhough they may lack infrastructure. So, the well to do affluent who afford to buy 2nd, 3rd, 4th home in city, pushes the cost in suburbs as well and the middle and upper middle income group rush to grab their affordable pie before its lost.
3. While some areas/corridors (like OMR etc) have grown on the fundamentals of IT growth, SEZ etc., many other locations far distant from city have also become costlier, physically remaining in the same state as they were decades ago and with no credible immediate future infrastructure/business growth or with vision 2020 2030 etc.
4. I also wish there's more semblance and rationale to RE growth. But, with our overall economy growing YoY, the demand for RE, be it from user, second home buyer, long term investor or for monthly rental return, will remain on positive territory. After the bull run from 2003-2007, the market had been in stagnation stage in 2008 & 09, and now consolidating. So, at best, correction may happen, not a free fall like US.
5. The industry has to be regulated. Currently, the govt. is bothered only about charging the registration fee and maintaing the record. The brokers should be certified with code of conduct, registration should be more transparent and identity of owner should be fool proof and verifiable easily so that multiple sale of same property is avoided, all records such as regn., revenue record (patta) are all updated parallely and a single document should be proof of title for all purposes, etc.etc.
6. With a well grown and governed stock market, speculation is still prevalent. So, speculation in real estate which is unregulated will remain.

28-08-10	#8
greschennai Member Join Date: May 2009 Posts: 56 Thanks: 0 Thanked 0 Times in 0 Posts	I agree, in general, on the various points discussed. 1. Yes, first home buyers (incl. those having total monthly income of around 80k-1 lac) are looking at max of 50-60 lacs apartments. So, any property above say Rs.75 lacs is bought by NRIs / HNIs / Investors for investments and monthly rental return purpose. 2. Unfortunately, when prime areas in city become costlier through every transaction, its impact is felt in neiboughoods and suburbs eventhough they may lack infrastructure. So, the well to do affluent who afford to buy 2nd, 3rd, 4th home in city, pushes the cost in suburbs as well and the middle and upper middle income group rush to grab their affordable pie before its lost. 3. While some areas/corridors (like OMR etc) have grown on the fundamentals of IT growth, SEZ etc., many other locations far distant from city have also become costlier, physically remaining in the same state as they were decades ago and with no credible immediate future infrastructure/business growth or with vision 2020 2030 etc. 4. I also wish there's more semblance and rationale to RE growth. But, with our overall economy growing YoY, the demand for RE, be it from user, second home buyer, long term investor or for monthly rental return, will remain on positive territory. After the bull run from 2003-2007, the market had been in stagnation stage in 2008 & 09, and now consolidating. So, at best, correction may happen, not a free fall like US. 5. The industry has to be regulated. Currently, the govt. is bothered only about charging the registration fee and maintaing the record. The brokers should be certified with code of conduct, registration should be more transparent and identity of owner should be fool proof and verifiable easily so that multiple sale of same property is avoided, all records such as regn., revenue record (patta) are all updated parallely and a single document should be proof of title for all purposes, etc.etc. 6. With a well grown and governed stock market, speculation is still prevalent. So, speculation in real estate which is unregulated will remain.