amitjj

Looks like coming war on Iran will present another buying opportunity like after 1991. Now need another Harshad Mehta type scam to have history repeat.

manugnair

Hi ,

All the dooms dayers were predicting sensex at 12K when it was at 16K .... what happened it reached 18.5K ....

Now , some newspapers are predicting that market will crash by 25%....but by next year the real estate prices would be higher by atleast 10% . The reason are as follows

a) DC rules in mumbai would lead to higher outgo from builders and would be passed to the buyers
b) Cost of constuction has gone up significantly
c) Cost of funds also have gone up... hence for new launch more downpayment is desired
d) In today's TOI ... it has been predicted that the average salary rise would be around 11% ... more salary higer is the prices
e) In december the actual registrations have gone up by 45% as compared to November ... there is only 9% decline YOY ... so those who were sitting on fence are coming back to the market ... not by choice but forced since residential rentals are increasing .... owners are now asking for 20% increase in rentals
f) Launch of small homes to maintain their cash flow .... for eg Hirnandani estate has launched one Bhk priced at Rs 8250 rather than reducing their inventory by bringing down the price.
g) Anticipation of SOPS from government in the forthcoming budget ... like no tax slab to be increased .... and interest on home loan to be increased from 1.5L to 3 L ..... these are market news ... dont know what would actually happen.

Hence my guess is that the prices are going to further increase by atleast 10% during this year leading to further strain in already streched budget of buyers . ... but not many choice i guess

Lets see what happens !!!!

ashishi

45% of residential projects launched before 2008 in NCR, Mumbai and Bangalore are delayed: PropEquity - The Economic Times


Read this to know that 77% projects which started construction on or before 2008 have yet not been delivered in NCR

ashishi

NEW DELHI: Over threefourths (77%) of housing projects in the National Capital Region and one-third of projects in Mumbai and Bangalore will not be completed on time mainly due to a fund squeeze, a survey released on Friday showed.

In all, nearly 45% of the 1,920 projects launched in the three metros suffered due to scarcity of skilled workers and the slothful attitude of the developers, a report by real estate research PropEquity revealed. The study covered projects which were launched between January 2007 and June 2009 and were expected to be delivered by January 2012.

While thousands of investors who have booked apartments in these projects continue to pay their loan installments, developers in NCR reported the worst ontime performance, completing just 23% of the projects they had taken up. In Mumbai, developers had completed 61% of the projects and the number of ready projects was 66% in Bangalore.

The delay in NCR is visible across Noida and Gurgaon, the two most active hubs, where several apartment owners are awaiting possession.

Contracts favour builders more: Buyers

New Delhi: The apartment owners complain that the contracts weigh in favour of developers as the delay in delivery only gets them a few thousand rupees as compensation in contrast to two-digit penalty rates levied by realtors. For instance, for a 2,000 square feet apartment that costs around Rs 1 crore, a buyer pays around Rs 1 lakh in equated monthly installments (EMI), while any delay fetches a compensation of Rs 20,000 a month. Typically, developers pay Rs 5-10 per sq ft as penalty.

"NCR has contributed to lot of the delay, and the major reason is that the number of projects that were launched here very large compared to Mumbai and Bangalore. The other reason is that the realty market picked up post subprime crisis and several projects were announced , but the developers did not have the execution bandwidth for it, and in several cases used funds raised from one project to acquire land banks," said PropEquity CEO Samir Jasuja.

Developers said there are several factors ranging from getting approvals to the Mahatma Gandhi National Rural Employment Guarantee Scheme and infrastructure projects, which were competing for workers. Lalit Kumar Jain, who heads Confederation of Real Estate Developers' Association of India (Credai), said the RBI's decision to discourage banks to lend to real estate companies had dried up domestic funding.

ashishi

Thunderstorm building over real estate sector - Economic Times

Meghna

Today buyers are very happy when they get the Builder buyer agreement (BBA) regardless of what is written and what are the clauses and what are the conditions.

Krazy Yuppie

Buyers have no option but to sign one sided BBA in the absence of a regulater

monkatheart1

Statistics and figures are one thing.

Guess it is the affordability. Unless one has lot of spare cash ( disposable income - mostly unaccounted and can not be invested legally like banks), then one can take huge risk. In such cases, worst thing that can happen is devaluation of the property which means part of the money is lost ( It is black money anyway hence not much damage).

But if you are a genuine salaried person/ honest business man who earns money through grit and grind , then you need to think hard. Again, if it is the purpose of residence , then it still carries some meaning. But purely investment , that too to become rich fast, atthis juncture makes no sense.

The RE prices are just way way off any sane norms across india. Not just in Metros.

pankajiaf

DB Realty has reported a sales turnover of Rs 28.86 crore and a net profit of Rs 27.50 crore for the quarter ended Dec '11.
For the quarter ended Dec 2010 the sales turnover was Rs 34.26 crore and net profit was Rs 24.30 crore.
Quarterly Results of DB Realty -------- in Rs. Cr. --------
Dec '10 Sep '11 Dec '11
Sales Turnover 34.26 15.34 28.86
Other Income 17.18 8.05 7.06
Total Income 51.44 23.39 35.91
Total Expenses 13.23 5.47 5.06
Operating Profit 21.03 9.87 23.80

This info i am just pasting for information of our dear readers, just imagine that a company like DB Realty (Shahid Balwa fame) had made a net profit of Rs 23.8 crores on Expense of just5.06 Crores in three months (sep-dec 11) and my dear friends these are reported figures ..which i am assuming to be true as Mr Balwa is in Jail.....

Now this profit is 356% of the money invested.....

Just sit back and think..had people been wise and not bought dreams...will a company like DB Realty be ever able to make these unrealistic profits...356%...that's unimaginable for any listed company doing a normal business....

These are the reasons of my belief that RE in india has had its days...and now just think that DLF is not able to make profits even with better margins when compared to DB reatly..so where is money going..to our S-I-L Mr Wadra or Ms Piya Singh and Mr KP Singh...

quixotic

I completely agree with the above statement and the lopsided buyers agreement's in favour of the developers. But what many people dont realise is that in case of a delayed project you may not even get this 5-10 Rs rebate as mentioned in the penalty clause of the agreement. The reason most often cited by developers is the delay in payment of the installments by the buyer. So, if you are late by even one day for one of the payments then you dont qualify for the penalty, depite having paid heavy interest on that delay.