Originally Posted by NG2012

3. Greed is a human behaviour. Its not as if all builders are greedy and rest of the humanity isn't.

Originally Posted by myopinion

Since last few months, I have observed that most of the people I met / heard from others, want to buy real estate in Pune and areas around Pune. Please note that most of them are investors from Pune and Mumbai (and might be from other cities/countries). The question arises after looking at this - when those investors will again come in market after few years, say 3-5 years, to sell their property, who will buy them as by that time many people would have also become investor? Also, the new supply will keep on coming from builders and hence there would be many options available to those who are really looking to buy real estate for their own need and NOT for investment. In short, as there would be more supply than demand, investors may not get enough / expected return and there could be crash in the market.

This is My Opinion. What other dear members have to say on this?

Originally Posted by NG2012

All it takes is to make a few phone calls and find out the costs associated with building large complexes.

What are your calculations? Have you done any?

manjit123:


And no. The land is not free. There is something called FSI and one can build only as much as the land area. Yes, builders make some quick buck by selling parkings and infrastructure costs and 30% loading factor but still I would be surprised if any builder gets more than 40% ROI per year.

Information is available for everybody to check...in this world everything is just a phone call away. Start calling people who have land for sale or intend to do JV. and you will know how risky it is to get into this business. Rs 4000 per sqft built up is a very reasonable price if builders have to survive (for them surviving is not using private planes!)

Originally Posted by NG2012

1. Land prices have gone thru the roof in last few years. There is no piece of land 20000 sqft at Rs 1000 in Wakad anymore.
2. 15% salary hike should mean 30% income increase to businessmen. Afterall, the risk and rewards have to be in proportion.
3. Greed is a human behaviour. Its not as if all builders are greedy and rest of the humanity isn't.
4. Yes. Black money has very important role to play. Real Estate is a good parking place for unaccounted money.
5. Yes. Politicians and builders are one happy family.
6. Daily rate of a labor is Rs 600 per day in Pune.
7. Bricks cost Rs 9000 per thousand and cement costs Rs 280 per bag minimum.
8. Construction cost is around Rs 1000 per sqft.
9. IT tycoons and folks in entertainment industry became richer much faster than builders...so not sure why they are being accused of being greedy. They are in the business of making money and every right to sell their stuff to the highest bidder.
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All opinions are personal and made with very limited research. I usually call several people trying to sell land or interested in JV. I also call many builders. But I don't have any insider information.

However, with my reserach (howmuchever limited), I don't beleive that there will be any correction. RE will stagnate as it is seriously unaffordable. Current builders will slowly start finding new business opportunities and the market will stabilize. Eventually, RE will increase with the rate of inflation.

Originally Posted by suryawork

IT tycoons and others didnt become rich at the cost of common man .
Realtors are trying to become rich fast by conning people . If there was a process where they had to compulsorily follow all legal regulations then a lot of people will have no problems with them .