Amit & Wiseman .. thanks for the posts .. few other members of this forum constantly barrage us as being "Bears" but they don't seem to realise that most of these so-called bears are not "investors" to be categorized as bulls or bears .. we are ordinary, middle class people looking to put a roof over our heads .. yes our salaries have increased over the last few years but that is because of the toil we put in and we all want to enjoy the fruits of our labour as opposed to paying off EMIs for the rest of our lives.. Our dreams of enjoying the fruits of our labour have been rudely hijacked by the greed of builders to make 500% margins supported by the corrupt media and politicians
Apartments in Mumbai, Delhi are much more expensive that those even in London and New York; but incomes are nowhere close .. 200K USD will get you a more than decent 3 bedroom co-op in the US .. try getting something similar for Rs.1 Cr in Mumbai or Delhi .. you'd be surprised how far you would land up
My advise to all the so called "Bears" .. please stop visiting these estate agents and builders till November .. only then will the rates go down .. peek into the psyche of the builders .. they had a pretty good thing going making 500-600% margins .. do you think they will give up so easily?? every single visit to the site tells the builder that there is demand in the market that he can convert in to a sale .. and then we all come back frustrated that the rates are not falling and crib on these forums .. how will the rates fall if we keep going back?? what is the incentive for the builder lobby to reduce rates when there are people knocking on his door day in and day out??
Let's have some common sense people .. either we stop going to the builders or just pay up and shut up (and enslave yourself the rest of your lives to pay off these EMIs)
Quote:
Originally Posted by wiseman
Amit,
Superb! Very good for you to have taken the time to post this article.
I would like to bring everyone's notice to the highlighted points:
1. 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
comment: Till jobs start coming back net-net surplus, there will be a substantial oersupply and price pressure on commercial/office space for years to come
2. 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. Prices may fall even below the fair value.
comment: I have been saying this exactly from the beginning. 50% to 80% fall in prices before the end of this fall. Right now it appears others are prepared to go to 30% + 30-40% which cummulates to 60% to 70%. We are getting close!!! 
Thanks again for getting out the unpalatable but real picture based on data. Hope this gets the youngsters ready and eager to jump in at the first sign to think a little bit and ponder! 
cheers |