Builders & RE Bulls Theory Proved Wrong. - Page 305 - Indian Real Estate Forum

RAJESHP · 20-12-10

Quote:

Originally Posted by compuwalah

If price of RE sustain (no need to even rise) for 3 more years, its no way going southwards.

Agreed, if price even stagnates for next 3 yrs, I do not see prices going south there after.

But big question is if this price stagnation for 3 yrs possible when there are many investors in Pune market.

Considering most of investors entered the market in 2007, prices not much increased from 2008 onwards, these overly optimistic investors would eventually realize their investment is not yielding.

But they will continue with their social service with cheap rental right? LOL

Either rents rise or price falls in next 3 yrs. Choose your pick.

Venkytalks · 20-12-10

I have already observed rent rise in urban villages and DDA flats near where I live in Delhi.

Rent for basic minimum housing went from Rs. 5000 to Rs.11000 during 2001 to 2008 period. From 2008 to 2010 currently it is now Rs. 13000 per month, thanks to metro.

By 2014/2015, I expect Rs. 20,000 per month for basic minimum rent for very small 2BHK where I live (heart of South Delhi).

Let us see how this prediction fares.

RAJESHP · 20-12-10

Quote:

Originally Posted by Venkytalks

I have already observed rent rise in urban villages and DDA flats near where I live in Delhi.

Rent for basic minimum housing went from Rs. 5000 to Rs.11000 during 2001 to 2008 period. From 2008 to 2010 currently it is now Rs. 13000 per month, thanks to metro.

By 2014/2015, I expect Rs. 20,000 per month for basic minimum rent for very small 2BHK where I live (heart of South Delhi).

Let us see how this prediction fares.

Not the case with Pune. Rents are same from 2007/8. I see rents going down in Pune. First >5 yrs flat will be available for less rent and others will follow soon.

realacres · 20-12-10

This is what many people state here & now it is official. The builders' sales figs. are fudged. An excellent article from Indian Express.

Some important point mentioned are:-

>> In what could possibly be seen as signs of a realty market teetering on its edge, a recent research report shows that as much as 43 per cent of the residential sales in Mumbai has been flagged as “artificial”.

>> Of the total Rs 8375 crore that was supposedly generated from residential sales in Mumbai in July-September 2010, what remains after excluding these flagged projects is merely Rs 4774 crore.

>> “There is no progress in the construction work on ground, none of the adjoining projects are selling nor are any other projects in the rest of the market. So when some projects, especially by the big players, still continue to claim that majority of their stocks have been sold out, it is very hard to believe,” said Pankaj Kapoor, CEO of Liases Foras. He says at least a 30 per cent correction is required to reduce the disconnect between the local demographics and the new residential projects in Mumbai’s over-heated property market.

>> In some areas, the unsold flats are as high as 50%,

>> Of the total Rs 8,375 crore that was supposedly generated from residential sales in Mumbai in July-September 2010 what remains after excluding these flagged projects is merely Rs 4,774 crore.

For complete story, read here:-

43% residential sales in city flagged artificial: report

compuwalah · 21-12-10

One fellas loss is another's profit

PEs bet big on realty as cos run short of capital - The Economic Times

Smart PEs have some money making oppurtunity here.

Saurabh01 · 21-12-10

Cash crunch hits Indian banking system - The Times of India

EW DELHI: Year 2010 is proving to be a year of fund crunch for the Indian banking system.

If use of Reserve Bank of India's overnight funding window is an indicator of things, Monday saw banks use the repo route to raise a record Rs 1.59 lakh crore.

The high repo borrowings were despite the central bank announcing measures to inject Rs 48,000 crore into the system last Thursday.

While the cash position might be tight, bankers are not losing sleep yet. Probably, reflecting the sentiment, interest rate in the call money market -- which is an overnight market used by banks to lend or borrow from other banks -- reached a high of 7%.

RBI's move to lower the minimum holding level of government securities, referred to as the statutory liquidity ratio (SLR), has provided some comfort to the market. Compared to the new floor of 24%, banks have significantly higher surplus holdings of government securities.

With growth in bank deposits failing to keep pace with the flow of loans, the pressure has only intensified to make the cash position in 2010 tighter than 2008, the year the financial crisis hit the world.
...................................
...................................

Is it going to effect in the next financial year?

ash7979 · 21-12-10

Here is link for some of the record breaking Land deals in Mumbai...If Builders are buying land at such a HIGH prices then how come prices will come down...

Borosil sells 18 acre for Rs 830 cr - The Economic Times

realacres · 21-12-10

Quote:

Originally Posted by ash7979

Here is link for some of the record breaking Land deals in Mumbai...If Builders are buying land at such a HIGH prices then how come prices will come down...

Borosil sells 18 acre for Rs 830 cr - The Economic Times

Man, this is almost 5 months old news/link (pls check date....hey not that date

). Situation has changed a lot in this quarter.

ash7979 · 21-12-10

Quote:

Originally Posted by realacres

Man, this is almost 5 months old news/link (pls check date....hey not that date

). Situation has changed a lot in this quarter.

This news was OLD but it was still relevant....And here is another One (Fresh News

)...

PEs bet big on realty as cos run short of capital - The Economic Times

Not ONLY banks, now PE firms coming to rescue Builders to support RE prices

I am not supporting RE prices just putting the news flowing around...

realacres · 22-12-10

Here are several complaints against several builders in India. It also includes Pune builders as well as Mumbai builders like Lodha.

The complaints will help you in taking better judgment & avoiding builder traps in which several people here have fallen. If you feel that some builder is behaving the way mentioned in these complaints, better to avoid the builder altogether.

A must read real time experiences of harassed buyers.

Flats

20-12-10	#3042
Venkytalks Veteran Member Join Date: Sep 2009 Posts: 2,655 Thanks: 26 Thanked 176 Times in 92 Posts	I have already observed rent rise in urban villages and DDA flats near where I live in Delhi. Rent for basic minimum housing went from Rs. 5000 to Rs.11000 during 2001 to 2008 period. From 2008 to 2010 currently it is now Rs. 13000 per month, thanks to metro. By 2014/2015, I expect Rs. 20,000 per month for basic minimum rent for very small 2BHK where I live (heart of South Delhi). Let us see how this prediction fares. __________________ Venky

20-12-10	#3044
realacres Moderator Join Date: Jun 2009 Posts: 6,144 My Mood: Thanks: 49 Thanked 180 Times in 135 Posts	43% residential sales in city flagged artificial: report This is what many people state here & now it is official. The builders' sales figs. are fudged. An excellent article from Indian Express. Some important point mentioned are:- >> In what could possibly be seen as signs of a realty market teetering on its edge, a recent research report shows that as much as 43 per cent of the residential sales in Mumbai has been flagged as “artificial”. >> Of the total Rs 8375 crore that was supposedly generated from residential sales in Mumbai in July-September 2010, what remains after excluding these flagged projects is merely Rs 4774 crore. >> “There is no progress in the construction work on ground, none of the adjoining projects are selling nor are any other projects in the rest of the market. So when some projects, especially by the big players, still continue to claim that majority of their stocks have been sold out, it is very hard to believe,” said Pankaj Kapoor, CEO of Liases Foras. He says at least a 30 per cent correction is required to reduce the disconnect between the local demographics and the new residential projects in Mumbai’s over-heated property market. >> In some areas, the unsold flats are as high as 50%, >> Of the total Rs 8,375 crore that was supposedly generated from residential sales in Mumbai in July-September 2010 what remains after excluding these flagged projects is merely Rs 4,774 crore. For complete story, read here:- 43% residential sales in city flagged artificial: report __________________ IREF Rules - Read Me

21-12-10	#3046
Saurabh01 Member Join Date: Oct 2009 Posts: 445 Thanks: 1 Thanked 4 Times in 4 Posts	Cash crunch hits Indian banking system Cash crunch hits Indian banking system - The Times of India EW DELHI: Year 2010 is proving to be a year of fund crunch for the Indian banking system. If use of Reserve Bank of India's overnight funding window is an indicator of things, Monday saw banks use the repo route to raise a record Rs 1.59 lakh crore. The high repo borrowings were despite the central bank announcing measures to inject Rs 48,000 crore into the system last Thursday. While the cash position might be tight, bankers are not losing sleep yet. Probably, reflecting the sentiment, interest rate in the call money market -- which is an overnight market used by banks to lend or borrow from other banks -- reached a high of 7%. RBI's move to lower the minimum holding level of government securities, referred to as the statutory liquidity ratio (SLR), has provided some comfort to the market. Compared to the new floor of 24%, banks have significantly higher surplus holdings of government securities. With growth in bank deposits failing to keep pace with the flow of loans, the pressure has only intensified to make the cash position in 2010 tighter than 2008, the year the financial crisis hit the world. ................................... ................................... Is it going to effect in the next financial year?

21-12-10	#3047
ash7979 Senior Member Join Date: Jun 2009 Posts: 620 Thanks: 0 Thanked 0 Times in 0 Posts	Record Breaking Mumbai Land Deals!!! Here is link for some of the record breaking Land deals in Mumbai...If Builders are buying land at such a HIGH prices then how come prices will come down... Borosil sells 18 acre for Rs 830 cr - The Economic Times __________________ Cheers, -Ashish

22-12-10	#3050
realacres Moderator Join Date: Jun 2009 Posts: 6,144 My Mood: Thanks: 49 Thanked 180 Times in 135 Posts	Complaints Against Builders Here are several complaints against several builders in India. It also includes Pune builders as well as Mumbai builders like Lodha. The complaints will help you in taking better judgment & avoiding builder traps in which several people here have fallen. If you feel that some builder is behaving the way mentioned in these complaints, better to avoid the builder altogether. A must read real time experiences of harassed buyers. Flats

21-12-10	#3045
compuwalah Senior Member Join Date: Dec 2009 Posts: 912 My Mood: Thanks: 2 Thanked 23 Times in 18 Posts	One fellas loss is another's profit PEs bet big on realty as cos run short of capital - The Economic Times Smart PEs have some money making oppurtunity here.

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
need to know about asvini builders	subish	Chennai	4	09-07-09 02:16 PM
Beware of what you are buying even the theory	connect2sam	Chennai	1	08-04-09 04:01 PM
Doshi Builders	ananthkra	Chennai	20	04-02-09 10:53 AM
Wrong Date at the back of Registration deed	Rashid	General Real Estate Discussion	0	22-07-08 02:36 PM
11 years on, builders to pay up Rs 37.5 lakh	Raj	Ansals	0	27-07-07 09:20 AM