Originally Posted by amit_2009

here is the place to share some hard facts and numbers from reputed sources:
]http://www.businessworld.in/index.php/Infrastructure/The-Rise-Fall-Of-Realty.html[/url]

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Frozen Market
Despite all the claims and hype by builders, their stock is not moving. Builders depend heavily on bookings — using the initial payment of 20 per cent to kickstart projects, and leveraging the bookings to raise loans. In the absence of bookings, they are now starved of funds. According to Pankaj Kapoor, CEO of Liases Foras, a real estate rating and research agency, there are 5,115 residential, commercial and retail projects under construction, and 339 proposed projects that have either stalled, slowed down or failed to launch across six metros (see ‘="http://www.businessworld.in/images/stories/infrastructure/massive_pile_up.gif"]Massive Pile Up[/url]’). “The commercial/office space segment is in greatest distress with 195 million sq. ft of ready and under-construction property in the market with few takers,” says Kapoor. Consumers began withdrawing as early as March 2008, but developers took time to come to terms with it. Flush with IPO (initial public offering) money and FDIs (foreign direct investment), they thought they could hold out till the consumer blinked. That did not happen and the shakeout began last October.

Second, from February 2008, there has been substantial reduction in capital values and lease rentals. For instance, in the Delhi-NCR region developers such as DLF, Supertech and JP Associates launched projects in west Delhi, Gurgaon and Noida at rates 30 per cent below what were prevailing at peak in June 2008. DLF launched a project at Rs 1,800 per sq. ft in Hyderabad, 40 per cent lower than market rates.

These tactics have not worked.

What Is The Bottom Of The Trough?
According to Kapoor, realty prices rose three-fold over three and a half years. But the fall in prices over the past nine months has only been 31 per cent. “Prices are poised to fall by 30-40 per cent more by November,” he forecasts. “Prices may fall even below the fair value. It is only by November that we may see 2005-level trading.” This perception is backed by an Edelweiss Securities survey of visitors at a four-day property exhibition held in April. Eighty-four per cent respondents felt property prices were still too high and expected a 10-30 per cent fall.

Attempts to get responses from Unitech, DLF and Parsvnath by Bw drew a blank....