spdutt72

Dear Members,
Do you'll agree with this trend in very recent time the property prices being jacked up a further 20-30%. Here is an article by DNA, do you'll agree or disagree with it...
your opinion on this..

Home truth: Curb prices or buyers will run away

Property analysts say sales will dip further in the next few months

Rajshri Mehta

Developers be warned, say property analysts. Buyers' interest in buying homes has waned because of the steep prices. The proof of it is already there in the declining number of home registrations at the stamp duty office.
The sales will dip further in the next few months if property prices continue to climb beyond the peak levels of 2007-'08. If the developers do not rein in their zeal for bigger profits, they will scare away buyers, the experts say.
DNA had published an article in its January 31, 2010, issue, saying that developers have hiked prices to the unsustainable peak levels of 2007.
Suman Memani of Religare Capital markets said, "Property prices in Mumbai have risen sharply since October 2009. At some places in the city, the prices have climbed beyond the pre-downturn (2008) peaks. Absorption at these rates could decline further as customers in the city are already facing an indirect increase in cost of purchase on account of service tax — 4-5% applicable from July 2010 — and value added tax (VAT).
"Further, discounts or incentives for buyers, which were in plenty during the downturn, have vanished as developers have now been cushioned by a significant quantum of pre-sales from projects launched over the past one year."
Analysts say that with private and state-owned banks withdrawing the teaser home loan rates — some as low as 8.25% introduced to lure borrowers during the downturn — last month, sales will take a beating.
However, property experts feel that though sales will drop, prices are unlikely to come down in a hurry.
"There are two reasons for this. Firstly, the demand continues to be robust. Also, the tax laws have improved affordability," Aashiesh Agarwaal, an analyst with Edelweiss Securities, said. "The market sentiment has changed. It was reflected in the body language of the buyers and the developers at the recent annual property expo organised by the Maharashtra Chamber of Housing Industry. The buyers were shocked and dismayed by the 25-30% rise in prices as compared to last year's expo, but the developers made it clear that they were not open to negotiations."
The high prices have kept end users away from several new launches. But the interest of the investor community has been buoyed by the recovery of thissector. A broker speing in investments said, "These investors are mostly people seeking to book homes for their children or NRIs. Investors close to developers have booked flats in bulk. All this has sent the prices soaring. I am not complaining, but I do not think such high rates will be sustainable in the long run."

Sharpj

I really do not understand this NRI's buying.. Is it just some kind of hogwash floated by the builders..
NRI's can find a better quality of life in Bangalore, Pune then why would they buy at these obnoxious prices ..
But prices in RE do not correct overnight.. it will be a slow and painful fall if it happens..

wadia

Do you think Bangalore and Pune offer better quality of life?

sqldba20

I don't know about Pune but Bangalore does offer better quality of life. A few things on top of my head:

1) atleast don't have to go through the Trains or crowded roads where the traffic doesn't move.
2) better laws than Maharashtra for Property owners.
3) Airport much better than Mumbai (for travellers)

Having stayed in Bombay for last 25 years and now staying in Bangalore since last 4 years I can confidently say Bangalore offers better quality of life.

wadia

1) atleast don't have to go through the Trains or crowded roads where the traffic doesn't move.
- They dont have trains but they have too many people and huge traffic jams

2) better laws than Maharashtra for Property owners.
- I am not sure about this. But I don't think this is the case.

3) Airport much better than Mumbai (for travellers)
- What do you want to do with the airport. Have u been recently to domestic or international airport in Mumbai. Pune & Bangalore airport are better, I don't think so.

If you like Bangalore so much then Bangalore is the place for you . You are maybe in the wrong forum thread.

Sharpj

From an NRI percpective.. if you are buying a property to come to when you are in India.. yes Bangalore makes more sense.. Bigger house for lesser money...

Nope the point is not to judge one place over the other.. but I do not buy the bull that all these properties are sold only to NRI's... NRI's do buy.. but you hear the same story.. whether you go to Oberoi's, Lake Homes, Hiranandani, any place in bandra..

And people in these forum's curse NRI's for generating demand.. so prices are up.. not just because NRI's are buying.. Resident Indians are too..

frugality

Disclaimer : Read at your wish, as the below article contains info which you may not like

Whats the use of all the money when you die 7 to 10 yrs younger then avg. Indian .... most of life passed in Trains ...


http://timesofindia.indiatimes.com/i...ow/5190726.cms

MUMBAI: Living life on the edge, scrambling for a toehold on trains, snaking one’s way through traffic snarls, fighting to find a roof over one’s head all combine to make Mumbai the city that never sleeps — and Mumbaikars the people who die younger than the rest of the country.

A study has found that the average Mumbaikar is likely to die at least seven years before other Indians and about 12 years before people living in the rest of Maharashtra.

wadia

It is because NRIs have too much money so they easily say yes to the jacked up rates. Resident Indians have no option left.
I am not saying that if there were no NRIs prices will not rise but they deginitely won't rise so fast. We are importing Real Estate price inflation.
Mexico faced the same problem 10 years ago. This NRI income and resident income disparity will just create a more unfair society.
Extreme poverty and extreme wealth. Even a good earning middle class person feels poor because of these jacked up rates.
It is not just in real estate. Even in malls like inorbit and oberoi, most people will go to eat and watch cinema while the NRIs will come to buy from clarks, marks and spencer and zodiac. What is the sense in Rs 2000 cufflinks and a 1200 Rs bathroom slipper?

gainvidya

I am an NRI... This is my take in short

I bought 2 flat in last 6 years. 1 for my own and 1 as investment. The investment was merely because as every NRI even I wish to come back to my home. Life is boring and tasteless in West. Opportuniry in west is no more edgy or at least not worth sacrificing the life I love (in India).

Hence I try to secure my future bu investing in property or shares or any other kind of investment as may give me secured return later..... BUT I must admit we NRI's (at least 60-70%) are outpriced. So dont worry its not that NRI will keep buying... no they cannot at least I cannot as its too expensive now.

What next!... I will wait for a year or 2 to see where does the market goes and then invest probably... OR maybe seek for a different investment oppor like business etc...

gainvidya

Why would you consider Airport in life style. Surely you dont use airport every week or month do you?

You need to consider thing which affect normal peoples everyday life. I agree trains are crowed but thats why MUMBAI is MUMBAI

I am myself from Mumbai and have lived in bangalore. I must bangalore is better than mumbai in terms of pollution or traffic but I've heard bangalore is getting worse in traffic as well....

And I must say living in MUMBAI all my life I cannot live anywhere other than MUMBAI