Builders & RE Bulls Theory Proved Wrong. - Page 205 - Indian Real Estate Forum

Sharpj · 27-07-10

It is a good deal for Leela.. I don't think they are doing so great and operating in Pune would maybe have resulted in losses.. Having a hotel in the city for office community would be better for Gateway kind of hotels and I am not sure if Leela has a brand on that range..

Politicians take their cut being the silent partner in such ventures.. as high as 50% just for easing out the deal and getting necessary approvals

Quote:

Originally Posted by Venkytalks

Agreed, Aditi.

Leela must have fallen out with politicians. Maybe they were forced to sell the land against their will!!!

Also, another possibility is that this land must have been sold by a politician long ago by giving hotel land use, because at that time only that was possible. But the intention all along might have been to park the land with the hotel to get immediate money and later convert the usage to reap illegitimate rewards all over again - double rewards scheme. All the politician has to do is strike a deal with the hotel owner, who has the capital. Everyone makes money - politician, leela, and the new builder.

Digvijay · 27-07-10

Hello real, people tend to differ and thts abosolutely normal. Infact this causes healty discussions and gives us more perceptions.

But I really liked your initial analysis regarding present situations of Pune( infact most of India) real estate. All most all points are valid and true.

Yes I found the Pune forum the most active and insightful.

Quote:

Originally Posted by realacres

Just forgot to mention in prevoius post:-

Digvijay, I like your posts though on some points we tend to differ. However, it is good as it opens up other avenues of thinking

.

Btw, you are close to 250 posts, where were you for so many days then?? Delhi thread?

You should have been here before coz various aspects of RE in general is discussed here other than mere projects + the forum has some of the most though provoking active members as well

.

realacres · 28-07-10

Quote:

Originally Posted by aditi sharma

http://www.realtyplusmag.com/rpnewsl...=9499&cat_id=1

"Hotel Leela had earlier planned to build a hotel on the land parcel along with service apartments but, company source says “the plan has been changed as the Pune market looks saturated.” "

Oh, it means Leela Kempinski (proposed name

) is gone man!! I don't know where it was going to come up, but it was in east Pune (they used to mention about 4 km from KP

, man why the hotel too states this, why not directly say Kharadi, Yerwada etc?

) on 4 acres of land.

Btw, does anyone knows when Hyatt, Vimannagar is going to open?? It is located adjoining to Hotel Ibis. Man, this is one thing which I like about east Pune:- really good hotels

.

home123 · 28-07-10

Quote:

Originally Posted by aditi sharma

The land pricing shows, builder are able to rip more profit from residential projects rather than commercial as Lunkad is planning a residential project on this land.

Humm...Even DSK has scrapped his SEZ project at Fursingi and now building 10000-15000 flats on that land...

ams444 · 28-07-10

Quote:

Originally Posted by home123

Humm...Even DSK has scrapped his SEZ project at Fursingi and now building 10000-15000 flats on that land...

Who is going to stay there in FURSUNGI near Dumping Ground of Pune!!!

hitmady · 28-07-10

Quote:

Originally Posted by realacres

Hey, just got the update:-

RBI hikes repo rate by 25 bps (at 5.75%) and reverse repo rate by 50 bps (at 4.50%).

It seems controlling inflation is high-priority. Now RBI would be reviewing rate every-month (earlier it was every quarter).
More rate-hike are anticipated in Sept.
Good news for savings in FD

Bad news for loans with floatings-rate.

Venkytalks · 28-07-10

More likely RBI will raise CRR and suck up liquidity next time - much more effective in drying up liquidity.

Indian rates are already optimal - raising rates will stifle growth badly

realacres · 28-07-10

Quote:

Originally Posted by Venkytalks

More likely RBI will raise CRR and suck up liquidity next time - much more effective in drying up liquidity.

Indian rates are already optimal - raising rates will stifle growth badly

MUMBAI (Reuters) – The Reserve Bank of India (RBI) is likely to raise interest rates more aggressively in the rest of the fiscal year after tightening monetary policy more than was expected on Tuesday and sounding a hawkish tone, a new Reuters poll found.

Most economists polled expect interest rates in India to reach their peak by the second quarter of 2011, the poll found.

Read complete article here:-

http://in.reuters.com/article/idINIndia-50433320100727

Venkytalks · 28-07-10

Hi real,

Yes the news channels were also full of analyst chatter along the same lines.

Analysts - They are like meteorology dept - when it rains, they predict more rain. Analysts did not anticipate 0.5% RRR raise. Now they are predicting lots of rate rise.

I believe RBI is more sensible than these analysts. They were prudent in 2006 when they predicted RE bubble. They were aggressive in raising rates, but lowered rates aggressively when the rest of the world followed suit.

If I was running the RBI, I would raise CRR and not the repo. It would be more effective in beating enflation. In fact I was expecting 0.25% RRR increase and a CRR increase this time around.

Maybe some specific things - some bond auctions etc - are anticipated by RBI and that is why they left CRR untouched.

RBI can also increase the risk in commercial RE - which is probably substantial, and ask for more provisioning by banks - which will cool RE prices and also bring down bank stocks.

I would lighten up on banks and RE stocks for now.

realacres · 29-07-10

Friends,
This is what is one of the most worrisome thing to happen:- highly delayed possession

. We keep warning everyone about this. Check out the following article & the woes of the buyers here:-

http://www.livemint.com/2010/07/2622...ty-sector.html

28-07-10	#2047
Venkytalks Veteran Member Join Date: Sep 2009 Posts: 2,578 Thanks: 21 Thanked 133 Times in 62 Posts Rep Power: 1	More likely RBI will raise CRR and suck up liquidity next time - much more effective in drying up liquidity. Indian rates are already optimal - raising rates will stifle growth badly __________________ Venky

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28-07-10	#2049
Venkytalks Veteran Member Join Date: Sep 2009 Posts: 2,578 Thanks: 21 Thanked 133 Times in 62 Posts Rep Power: 1	Hi real, Yes the news channels were also full of analyst chatter along the same lines. Analysts - They are like meteorology dept - when it rains, they predict more rain. Analysts did not anticipate 0.5% RRR raise. Now they are predicting lots of rate rise. I believe RBI is more sensible than these analysts. They were prudent in 2006 when they predicted RE bubble. They were aggressive in raising rates, but lowered rates aggressively when the rest of the world followed suit. If I was running the RBI, I would raise CRR and not the repo. It would be more effective in beating enflation. In fact I was expecting 0.25% RRR increase and a CRR increase this time around. Maybe some specific things - some bond auctions etc - are anticipated by RBI and that is why they left CRR untouched. RBI can also increase the risk in commercial RE - which is probably substantial, and ask for more provisioning by banks - which will cool RE prices and also bring down bank stocks. I would lighten up on banks and RE stocks for now.