pcpune

Request to the to-be buyers & consumers - its festival time again for the next 3 months and builders/developers are hoping to clear their inventories at HIGH PRICES - this means the price will remain high for the next year to come - as even if they sell 25% in a project - they recover their costs....

So, my humble advice - to all - PLEASE DONT get sucked in by :

1. New offers such as agreement,car,parking FREE etc
2. New launches and pre-EMI by builers etc
3. Some Festive discount valid for first 20 buyers and for 15 days etc

All of these - AND similar are marketting GIMMICKS - if the BUYERS stay put now - for the next 3 months - they might get the SAME property at 10-20% less than whats available now ...

So, PLEASE DONT GET SUCKED IN --- AND GO AHEAD AND RENT !

parikshit pune

Good post!

It is indeed likely that the builders will have a run on festive occassion. Like for cloth and jewellary mechants it could be a high season for builders

pcpune

From a recent report from ICICI,

pcpune

Well, it just shows that Pune is launching too many projects - the absorption is very low - similar to Hyderabad - where prices have really corrected ?

Whats IN for Pune ?

frugality

Mid-size & small IT firms struggling to maintain growth



This is when there is no Recession in US & Europe.....
if it happens ???....

Its time to stop buying flats and saving your jobs(not Spending Money ) ......

gery128

Hey All,

Can anybody tell me when would prices come down ? I know no one can predict perfectly but all have different perceptions.

I don't know the when is peak/high time for properties and when it is low time during financial year.

Please share your views.

Girish

amit3011

The question is not when price will come down. Question is whether one wants to buy at unrealistic price and become slave of bank for 20 years..
If the answer is yes, prices will not come down.

pcpune

No, the prices dont actually go mdown by more than 10-30%, however if it stays the same for the next 4 years - it means it has stayed the same since 2007, and if I consider prices is Kothrud in 2004 to be 2000 per sq feet, at 4500 per sq feet in 2014- its a case of ZERO return - inflation adjusted.


Hence, to beat inflation and to break even - on an average which is 7% -- the property price needs to double by DEFAULT in 10 years.

Now, if you take a loan at 10%, the property price needs to appreciate atleast by 17% PER YEAR - JUST TO BREAK EVEN --- which is surely not going to happen over the next 3-5 years...

Hence, even if the prices dont RISE, you still lose - unless the prices appreciate by 17% each year.....for the next 3-5 years, and for the next 20 years.

Hence, what happpened between 2003-2007 -- a meterioc 100% to 300% rise, needs to consolidate over the next 5-10 years -- thats the law of averages.

The global rate if return in Real Estate is 5% including India and China - and inflation adjusted it is ZERO, however some of us got lucky by entering at the RIGHT time (say in 2005)and more importantly EXITING at the RIGHT earning a cool 50-100%(say in 2007) -- INFLATION ADJUSTED.

realacres

I have something in my mind, but I won't disclose it right now coz the builders will not use these tricks in festive offers. So, waiting for builders to put their ads/offers first & then I will comment .

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RAJESHP

Long price stagnation not possible if there are more number of Investors in market.

What do you think a Investor will do with his investment when he/she is convinced that market is stagnant and not rising any more? Sit on his investment or get rid of it?

Price is demand vs supply. These investors are very very optimistic people in general, and they do not easily get convinced that market is now stagnant and prices are not rising.

One fine day when they realize this, supply will increase in the market, putting downward pressure on price. Demand further slides down, to allow prices to fall further.

Multiple buyers jump at all levels, but over all prices will decrease if there are more investors in Pune.

It will all depends on how many investors are there in the market!

Stay tuned!