amitjha

Read article.
http://business.rediff.com/slide-sho...-fall-soon.htm

. RBI has also given very clear mandate that real estate are going to bust. they have asked banks to be safe because common man cannt pay huge EMI's for 20 years. becasue there are lot of uncertainties around today.

. Pimple saudagar would see major falls , correction upto 40-45%. then baner (35-40%), then kharadi ( 30-35%). major fall down would be seen shortly
I had talk with many bankers for home loan takers: according to them.

1. numbers has fallen drastically in last 2-3 months because of steep rise in prices.
2. soon builder who are sitting on huge loans, need to be little less greedy and need to reduce prices by 30-40% to sell huge assets and pay loans
3. there are very few buyers now in market and those who are buging at current levels are either having lot of black money/currupt or BIG fools.
4. end users are missing from market and investers are only close relatives of builders. now these investers also giving up becasue they cannt hold or block money for long period.
5. if investers cannt sell in this peak market then they cannt sell ever. they have to book profit before they make huge loss
6. 30-40% prices reductions are envitable. dont buy today and give your hard harded money to crooks and greedy builders
7. there are huge numbers of unused flats from investers are available but no buyers at current levels.

8. there are ALert from RBI (read all articles in all news paper, TV). BE ALERT. dont give hard earned money to crooks.

puser

hope so..but dont think it will happen in 2-3 months, but if so happens i would be very much happy and feel lucky

techieguy_98

Can you attach few more articles that talk about drop in real estate ? Also the drop rates in Baner etc , where did you get or come up with those numbers ?
The article you have attached has different views on drop in real estate. Some say its unrealistic that rates will come down... PLease send more articles to ascertain your conclusions.
I like to see more than 50% drop ...but that may just be a dream ...

punerebuyer

while we all can wish this to happen and also can come up with various theoretical reasons why it can (should) happen, i think this will take a couple of years if not more...

it is because, we are simply not aware of the black money factor... we keep guessing but its endless.. and we all are willingly/unwillingly knowingly/unknowingly helping the increase in the black money reserves for the politicians and builders. Our tax money goes in the scams and becomes black and our bribe money goes there directly..

still I want to be optimistic... may we all see THE Diwali soon... wish all a very happy Diwali

nitisood35

We have been hearing about this 50% crash etc, however I am seeing lot of people sitting on sidelines, waiting for the prices to come down. We should be looking at the inflection point where the majority jumps in (if the prices drop) and start buying properties...

If lets say the rates in Baner are 4000 currently and correction happens, and you start getting the rate of 3000, do you think people will wait for it to further go down or start buying at 3000 ?! I strongly believe, with each dip in prices, there are more people wanting to grab their place rather than wait for further correction (in the fear of loosing on the opportunity of reduced prices).
Note: Here I am talking of regular junta not informed people who will catch the bottoms.

This could be a good poll question - How much down (in terms of percent) will get people to start buying ?!

punerebuyer

nobody can point out the tops and bottoms for such cases (stocks and RE) which is because of mentality of buyers/investors. Some people argue that 4000 to 3000 is a great decrease and hence good buy but at the same time some people think that if prices have gone this down, lets wait and they can come down even further.

When the former group has more action, the prices / trend starts upward again. When the later group has more strength, prices fall further. For individual users, need, affordability and VFM needs to be verified for taking a decision on any day.

a little off topic but this is the reason economics prefer small inflation and not deflation (negative inflation where prices go down). In the later, people wait for prices to go down even further and hence sales go down, production slows down, jobs get reduces, money inflow reduces and hence people forcefully need to wait for buying as there is no money... this cycle can lead to big recessions. A small positive inflation keeps the money circulation in a healthy way.

Cheers!

deepak.patil

After Adarsh society.. many other such property scams should get exposed.. we all know that such properties are there in all corners of each city.. this surely will 'correct' the RE prices..

punerebuyer

+1 to this... i sincerely hope this happens..

amitjha

There is elasticity rule in physics: once stretched to limit, it round with double speed. this is universal rule. real estate market bound to crash soon. RBI has already judged yes'day (3rd Nov, 2010 in circular to common man). they cannt tell this openly becuase of political pressure, but they have given strong indications to common man.

wait for huge crash soon. currently it is all hyped by FII, there is no reality in current boom. it is artificallly created by big goons.

Manoos

why would FII take out money ? india currently is giving the best returns.
last time FII took out money was due to global trigger.

every now and then sen has reached new levels, look at the results of the companies. why will not sen touch 23-24 k levels ?

there might be a marginal correction in property prices i feel but till some big trigger comes, the markets and realty is looking up.