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Prices expected to fall by 25% this quater

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Prices expected to fall by 25% this quater

Last updated: March 4 2012
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  • Prices expected to fall by 25% this quater

    Have a look at this :

    Property prices expected to fall by 25 per cent in next quarter : India News - India Today
  • #2

    #2

    Re : Prices expected to fall by 25% this quater

    Hope for it

    I wish this applies to Bangalore also along with Delhi and Mumbai.

    Comment

    • #3

      #3

      Re : Prices expected to fall by 25% this quater

      It will apply to bangalore as well..

      @bunty79 . .

      If you have read the article it says that all the developers including Sobha,DLF..who have their major projects in bangalore as well . . have major debt....(
      something more on DLF . . . Realty's debt nightmare: What are DLF, Unitech's options? - CNBC-TV18 -)
      With major investors quitting from Indian Real Estate Companies.. . the Real Estate sector has more or less become an end user market now..

      Given this scenario and the fact that in bangalore most of the end users for multistoreyed apartments are IT guys, have a look on this data:

      1. Salary Hike : 12% estimated for 2012(average)
      2. Inflation Rate : Close to 10%
      3. Reduced onsite opportunities due to strict VISA norms-> Lesser average income for IT guys.

      4. Price for a ready to move in decent 2bhk in a reputed builder’s apartment:70 lacs .You'll pay almost the same price if you invest in upcoming property and get possession after a year or so.Include the interest that you would have earned if you have kept the same money in bank in FD which you have paid to the builder and also the Interest that you'll be payin on the loan that you have taken.
      5. A person having 50,00,000 earns Rs. 37, 500(9%) to 41,666 (10%) as interest which is enough for renting a 2bhk in the same 'reputed bulder's' apartment + you have the choice to stay wherever you want(close to your office or in a peaceful area) + you can expect to save something(instead of payinf EMIs additionally!!) + flexibility to move to a new city in case of better opportunity.


      Now you can infer yourself. ..

      Comment

      • #4

        #4

        Re : Prices expected to fall by 25% this quater

        Haven't you read about the ocean of information and pearls of wisdom that has been offered on this forum. Bangalore is growing and so are property prices. Everybody must be able to buy 1 Cr flats now. It is so affordable and our children will reap Rs. 100 Cr from these affordable (cheap) investments we make. So be BOLD, BRAVE and go for buying multiple of these 1 Cr (or whatever cost, whatever location, approval or no approval). Be a visionary. Real estate is the only thing that we call development in this country.
        Last edited February 28 2012, 12:04 PM.

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        • #5

          #5

          Re : Prices expected to fall by 25% this quater

          facing the heat?

          @rahulbhagwat
          Haha . . .I hope this is sarcasm . . if it is not please read the following:

          I hope you are not a real estate guy...who's facing the heat . . .

          If you think that 1Cr flat is affordable for a regular IT guy . . then you are grossly mistaken. . .probably this is the reason why real estate sector is going downhill . .unrealistic prices and artificial demand. . .

          and..best of luck to you..if you feel that your 1Cr investment will give 100Cr return . .(donno when . .) . .
          haven't you ever heard about something called saturation point ? ...Study Mumbai's real estate market and then come back . . .
          Last edited February 27 2012, 11:43 AM.

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          • #6

            #6

            Re : Prices expected to fall by 25% this quater

            Originally posted by rahulbhagwat View Post
            Haven't you read about the ocean of information and pearls of wisdom that
            has been offered on this forum. Bangalore is growing and so are property
            prices. Everybody must be able to buy 1 Cr flats now. It is so affordable
            and our children will reap Rs. 100 Cr from these affordable (cheap)
            investments we make. So be BOLD, BRAVE and go for buying multiple
            of these 1 Cr (or whatever cost, whatever location, approval or no
            approval). Be a visionary. Real estate is the only thing that we call
            development in this country.
            hahaha !!!
            Good jibe !!

            Comment

            • #7

              #7

              Re : Prices expected to fall by 25% this quater

              I have been for some years wondering how the realty prices in Bangalore, have gone up so much that , an apartment with 1 Cr is now a normal thing. I mean this is 100% price increase in 5 years(in areas like Sarjapur Rd, ORR and Whitefield). Villas are not available in 1 cr range anymore. Villas near Nandi Hills(for God's sake) are being quoted 2 Cr plus. I mean what the hell?? I am sure this is even expensive for NRIs also. So I am only left wondering how these high profile projects are being sold out so fast. Of course i sucked up the rates myself and am just going with the game. The price correction that happened during the 2008-2009 recession was a good thing and it needs to be done again. There are some areas that have gone up 100% since 2009..and that is astounding.

              Comment

              • #8

                #8

                Re : Prices expected to fall by 25% this quater

                Yes real estate continues to be one of the most vibrant and profitable avenues to invest in the country as the investment in residential projects is currently the preferred route for investors, since the demand for homes in the metros and Tier II cities is virtually limitless. Secondly,commercial and retail spaces also present potentially lucrative investment propositions, especially in the larger cities.In almost all the markets, prices of residential real estate have appreciated in the last one year.The demand for residential units is likely to continue in the future as well.If the investor's horizon is more than, say three years,it is a great time to invest in property.
                mkp

                Comment

                • #9

                  #9

                  Re : Prices expected to fall by 25% this quater

                  there are lot of projects which offer high end living for folks who are rich than the usual.. such projects woudl be profitable even if the builder sells 50% of units. the rest is used by the company to service the govt machinery and its customers..

                  Comment

                  • #10

                    #10

                    Re : Prices expected to fall by 25% this quater

                    1 Crore flat

                    I never understood how can one buy a flat in Bangalore for 1 Crore? May be because i don't have 1 crore
                    But honestly guys, even for NRI's what is the point of buying a flat at this crazy amount where you are not sure of the water table after 1 or 2 years (Not like 10-20 years). At these prices, i guess NRI's can get homes with swimming pools etc back in their countries!
                    Agreed, home is a good investment to make and we can be pretty sure of India's and thus our earnings in future years. But too much leveraging and fat EMI's are equally dangerous.
                    It is easy for others to say be BOLD and BRAVE. It doesn't cost them anything. Only you need to decide your risk taking capability. For every story about reaping rich dividends in real estate, there are equal or more stories where people are ripped off.

                    Comment

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