Why are flat prices not falling? - Page 2 - Indian Real Estate Forum

AJ2008oo · 24-11-09

As far as I know, the so called 'investors' have already started negotiating in private

harri · 05-12-09

Only chance that prices going down is that people should stop buying if the prices are not reasonable. Many people invest whatever builder quotes even though they are high.

It is all with IT people

enduser · 24-01-10

Where will black money be parked? Natuarally RE, since other avenues are no longer attractive or viable.

Hence, there are influencial elements in society who don't want prices to fall, otherwise it would erode their capital (investments in RE).

findingnemo · 25-01-10

Wise... i respect your opinions. But your opinion that RE prices will go down by 80% is totally a baseless assumption. I would say height of scepticism.

This will never happen, i assure you and there are numerous reasons for that.

I know you are wise enough, then why you are creating this outright baseless negative predictions. 10-20% up/down is OK for some time, before the upside begins, but 80%, never, trust me.

Quote:

Originally Posted by wiseman

Ahirman said: "RE prices has never gone down in India and never will!

To that I say, Ahirman, you must be a really young chap!

.

Wisdom comes with age and experience (and also the willingness to listen when other more experienced people speak and learn from historical data).

If only you did a little study before you came out with those golden words, you will realise that as recently as 1995-98 RE in some parts of the country went down upto 80%!!!!! And that was mainly in the only IT boomtown in India those days - Bangalore! And there was not even the hint of a global crisis to trigger that one.

I hold the opinion that this time also RE prices will go down by as much as 80%. But alas, this time it may happen in many, many cities and even towns as these very same places have shown this huge bubble in the last 4-5 years.

Ahirman,

NEVER say NEVER,
UNLESS you are SURE!!!

cheers

AJ2008oo · 25-01-10

someone had predicted March 2010, appears the process has started

sanjaykg · 25-01-10

Dear All

I've been chased by some small-time builders on properties at Seawoods, Nerul which I inquired seriously way back in October-November'2009.

Just then they have raised prices by 20-25% which is back to approx. 5-10% high compared to July'09 prices.

I sincerely hope prices will fall by end Feb / early march 2010 and will be on declining side till festival period struck back in October'10.

puser · 26-01-10

Property rates in Pune are up already.

They haven't come down; they were down till last year (december) but then after second half of december they are rising or constant.

wiseman · 26-01-10

Folks,

Quoted prices swing wider than actual sale prices. The only way to be sure that sale prices have not actually firmed up (or have a reason to firm up) is to check registration numbers and see if a rough comparison can be made with for-sale inventory.

This is easily done in the US and other developed countries (which is why they are called developed), but much harder here.

If prices are being talked up despite volumes not going up much, you cn safely assume this is only a (desperate) gamble by builders.

In any case, 2010 is likely to be a hostile year for builders and we will see how they can handle it without bringing down prices!

cheers

Narayananwani · 27-01-10

Quote:

Originally Posted by ahirman

A lot of people are trying to link falling realty prices across the world specially in US to India. Its really s to Oranges.

Real estate prices never go down in India and never will. The reason is we dont look at realty as a financial instrument with all other available investment options. Also we are more emotional with it. Demands has been always high and supply low and seller knows that wait and watch pays.

Prices will stagnate at the most before climbing up steadily again but the kind of correction we see in US market is something which is never going to happen in India.

How much long will stagnate and with what rate they will climb back will depend on the location you are in and it differs widely. For Individual sellers its wait and watch time and for builders its time to throw in some freebies to attract crowd.

I somehow disagree with you. You are missing a very important point. The point is that in the last 60 years the propoery was developed by goverment agencies & there were very few private developers. So the supply of houses was very restrictive as it was in hands of goverment agencies. But now its different. Private developors have come in market & we are aheading towards an oversupply zone in Housing. This is the phase which India has never seen & hence till now prices of property have now gone down. Its similar to telecom/car market wherein BSNL/MTNL/ Ambessdor/Fiat were the only choice available to consumer but when private players entered the market then you see what has happened to the prices. Prices have been going down & down.

I request all of you to please be careful while investing your hard owned money because real estate market is such an inefficient market as prices are goverend by speculation more that the real demand supply situation.

rajeshbr · 27-01-10

I'm not an expert but I can share my experience.

In bangalore, the RE sales are still very dull and it looks like buyers more stub born than what I had thought. some of the best located sites/plotsthat I'm interested and inquired 9 months ago are still sitting in the market. I get calls from diffrent brokers for the same site at different times. Initially they say that market is going up and this is the last chance to buy at this price. When I rejected their offer outrigtly, they go away and call back after 1-2 months saying the the sellet is willing to negotiate for the better price. I have stopped looking for properties from past 3 months and I have no regrets as most of the properties that I saw are still not sold indicating the fact that the prices they quoted were too high and there are less number of fools this time to put in huge amount for someone's big profit. BTW my budget was from 60-70L which is slightly at the higer point of the mid range market in bangalore.

24-01-10	#13
enduser Member Join Date: Dec 2009 Posts: 304 My Mood: Thanks: 1 Thanked 0 Times in 0 Posts Rep Power: 1	Where will black money be parked? Natuarally RE, since other avenues are no longer attractive or viable. Hence, there are influencial elements in society who don't want prices to fall, otherwise it would erode their capital (investments in RE). Last edited by enduser; 24-01-10 at 07:26 PM.

25-01-10	#16
sanjaykg New Member Join Date: Nov 2009 Posts: 37 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Dear All I've been chased by some small-time builders on properties at Seawoods, Nerul which I inquired seriously way back in October-November'2009. Just then they have raised prices by 20-25% which is back to approx. 5-10% high compared to July'09 prices. I sincerely hope prices will fall by end Feb / early march 2010 and will be on declining side till festival period struck back in October'10. __________________ Kind regards. SKG Last edited by sanjaykg; 25-01-10 at 12:56 PM.

26-01-10	#18
wiseman Veteran Member Join Date: Jul 2008 Posts: 1,609 Thanks: 1 Thanked 25 Times in 16 Posts Rep Power: 1	Check the volume growth. Then you will know the truth! Folks, Quoted prices swing wider than actual sale prices. The only way to be sure that sale prices have not actually firmed up (or have a reason to firm up) is to check registration numbers and see if a rough comparison can be made with for-sale inventory. This is easily done in the US and other developed countries (which is why they are called developed), but much harder here. If prices are being talked up despite volumes not going up much, you cn safely assume this is only a (desperate) gamble by builders. In any case, 2010 is likely to be a hostile year for builders and we will see how they can handle it without bringing down prices! cheers

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24-11-09	#11
AJ2008oo Member Join Date: Nov 2009 Posts: 63 My Mood: Thanks: 4 Thanked 0 Times in 0 Posts Rep Power: 1	As far as I know, the so called 'investors' have already started negotiating in private

05-12-09	#12
harri New Member Join Date: Dec 2009 Posts: 20 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	Only chance that prices going down is that people should stop buying if the prices are not reasonable. Many people invest whatever builder quotes even though they are high. It is all with IT people

26-01-10	#17
puser Veteran Member Join Date: Apr 2009 Posts: 1,507 My Mood: Thanks: 13 Thanked 1 Time in 1 Post Rep Power: 1	Property rates in Pune are up already. They haven't come down; they were down till last year (december) but then after second half of december they are rising or constant.

27-01-10	#20
rajeshbr New Member Join Date: Oct 2009 Posts: 15 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 1	I'm not an expert but I can share my experience. In bangalore, the RE sales are still very dull and it looks like buyers more stub born than what I had thought. some of the best located sites/plotsthat I'm interested and inquired 9 months ago are still sitting in the market. I get calls from diffrent brokers for the same site at different times. Initially they say that market is going up and this is the last chance to buy at this price. When I rejected their offer outrigtly, they go away and call back after 1-2 months saying the the sellet is willing to negotiate for the better price. I have stopped looking for properties from past 3 months and I have no regrets as most of the properties that I saw are still not sold indicating the fact that the prices they quoted were too high and there are less number of fools this time to put in huge amount for someone's big profit. BTW my budget was from 60-70L which is slightly at the higer point of the mid range market in bangalore.