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Home sales going down !!!

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Home sales going down !!!

Last updated: July 25 2013
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  • Gaurav2k101
    started a topic Home sales going down !!!

    Home sales going down !!!

    Does anyone know what exactly is happening?

    The article on below link says that Sales in Bangalore is healthy:
    Home sales drop as property prices rise faster than salaries - The Economic Times

    And below article says the sales are donw by 18% in bangalore:
    Home sales down 50% in NCR and Mumbai, 18% in Bangalore in January-March 2012: PropEquity - The Economic Times

    Are these healthy numbers?

    Some says that there can be a huge default problem by middle class as they will not be repay the loan for apartments which are 80 lacs- 1 crores.

    Currently many people have bought homes by stretching themselves speculating that their salary will also increase in couple of years and then it will be comfortable for them to pay. But a recent surveys says that most IT companies are not hiking the salary by more than 5%. In that instance, with high interest rates the EMI will be huge and cost of living is also growing every day.

    How will india cope up with such a situation?

    ALso these days in Bangalore, it's a norm that every good builder is launching even 2 BHK at 60-70 lac + price range. A decent 3BHK from a reputed builder comes around 90lac-1crore+ other charges.

    Would there be many people able to afford it?

    Search the net and check the flat prices in areas like Bannerghatta road, Whitefield, Marathahalli, ORR , Hebbal and u'll b astonished to see such a high price. If someone has bought these flats 1-2yr back at good price then it's ok else How many people will b able to afford such a flat now?

    Real question still remains same to buy or not to buy...

    Food for thought!!!

  • pseudo1
    replied
    Originally posted by Gaurav2k101 View Post
    Assetz East Point Sarajapur Bangalore | Assetz Homes New Project - Allcheckdeals.com

    Assetz East Point - Bangalore Pre launch offer...

    1710 sqft basic cost is 75 lacs ... total cost is around 90+ lacs. Will be build in next 3-4 yrs....

    Will these projects gets hit during recession?

    What could be the price of this apartment in 2013? Will this be selling for total pric of 60-70 lacs in 1-2 yrs?

    Any comments?
    Well its exactly 1 year since you posted. The prices have only gone up.

    Leave a comment:


  • familyguy
    replied
    As far as Bangalore RE goes, there is a an upper limit of 50 lacs that is realistic for an IT employee. Wages in IT have been growing less than inflation trend since last 4 years. Wages will stagnate sooner or later just as in USA, if Indian IT demands more money then jobs will be shifted to east Asia. Buying something today factoring in a growth in salary of 10-15% for next 10-15 years is crazy for IT guys.

    People wake up, Bangalore itself might not be sustainable for more than 7-8 years with all the water scarcity and suffocating traffic (Namma metro is very poorly designed and will not help at all). Think a 1000 times before signing on those dotted lines. Also, the way commercial RE in Bangalore is getting expensive and companies having fixed incoming money from outside, many companies might look to move to other cities (tier II cities) within India. Two examples are of Gift City and Dholera SIR.

    Leave a comment:


  • Srihomes
    replied
    http://www.icicihfc.com/property_pdf...eld-report.pdf

    Leave a comment:


  • aksingha27
    replied
    A simple concept from ages. Village becomes town then city then metro/mega city. Core area prices are more, outskirts prices are less; after some years outskirts will no longer be outskirts; prices will be more there. Its just the boundary or the peripheral of the city which becomes more and the city grows.

    Prices will never crash down; i have been hearing this from past two years; it might gets stagnant for some time and again will tend to increase. With proper search houses/flats can be bought within 35-50 lakhs too within the city limits(BBMP). But everything has to be bought at the right time.

    Leave a comment:


  • harish100
    replied
    Are the rising real estate prices sowing seeds of doubt in your mind about the future of your proposed investment in residential property? Do you wonder whether the bubble is set to burst and if it is better to wait for prices to fall a little before taking the plunge?

    Given the trend of rising property prices over the last few years, the price of the property you have shortlisted will most likely keep going up as you wait.

    Residential real estate has one asset class whose prices have been steadily rising in most markets. Though analysts have been saying the residential property market in locations such as the Delhi-National Capital Region and Mumbai is ripe for a price correction, developers have been able to hold on to prices even as buyers wait for a fall. Given the demand-supply imbalance, the trend is likely to continue and your investment will in all possibility stand you in good stead even when other assets take a beating.

    Data for the past few years show that real estate has been a rewarding asset class. For example, in 2011, one of the worst years for equities when the Sensex fell nearly 25%, prices of homes in most Indian cities remained firm despite the overall economic uncertainty, both in global and domestic markets.

    During the year, prices in nine out of 15 cities covered by the National Housing Bank's residential index, called Residex (see chart), rose, except in Ahmedabad, where prices remained flat. In comparison, if you had invested in real estate stocks, the value of your investment would have fallen by nearly 50% between December 2010 and December 2011.

    Even if one considers the period from end-2008 till March 2012, which saw a widespread slump in equity and property markets worldwide due to the global financial crisis, real estate in India gave positive returns in most instances. As many as 11 out of 15 Residex cities gave positive returns during the period, the only exceptions being Hyderabad, Jaipur, Kochi and Bengaluru.

    Commodities such as gold and silver, however, were the other winners, beating real estate.

    DEMAND-SUPPLY PLAY
    Experts believe that the wide gap between demand and supply in residential real estate will keep prices firm over the long run. "NHB data itself show shortage of more than 20 million homes. There is an acute shortage of homes, especially in and around the main cities due to population migration that is happening due to growth opportunities. As a result, prices have generally tended to increase over the medium to long term," says Balaji Raghavan, CEO & CIO, Real Estate Fund, IIFL.

    Om Chaudhry, Founder & CEO, FIRE Capital and Chairman, Astrum Homes, agrees. "The shortage in many markets and the sticky nature of realty prices in India contributed to the firm trend," he says.



    Asset Mix: The Sensex and the BSE Realty index have declined over the years while other asset classes such has real estate, gold and silver have given decent returns
    Click here to Enlarge
    Chaudhry says real estate and commodities provide safety from stock market uncertainty. "When the stock market was going down, investors shifted towards commodities such as gold and silver (as shown by the data) and real estate as they are safer options. Real estate prices do not fluctuate as much as stock prices, keeping the money of investors safe, and gives good returns."

    RED-TAPE PUSH
    Ashwinder Raj Singh, executive vice president and head, sales and distribution, India Homes, says there is another reason real estate prices in India have been firm-red tape. "Major Indian developers are sitting on millions of square feet of land, in part because they don't want prices to plummet, but also because India makes it incredibly difficult to obtain permissions and approvals to build residential projects. The licensing process is long, cumbersome and often arbitrary, not to mention notoriously corrupt."

    But amid the general positive trend, why did certain market such as Hyderabad, Jaipur, Kochi and Bengaluru failed to perform? Experts mention factors specific to the market and the resultant demand-supply dynamics. Raghavan explains that Hyderabad, Jaipur, Kochi and Bengaluru have different demand drivers. For example, Bengaluru is driven by the information technology industry, and prices there largely follow the industry's fortunes. The Residex data show that prices fell around the 2009 period and then slowly recovered from 2010. Jaipur and Kochi, on the other hand, have not developed at the same pace as other urban centres. The demand for homes in Kochi tends to be driven a lot by population working outside the country and so prices there have been subdued because of the global recession. In Hyderabad, political uncertainty and its impact on business growth may have had a role to play.

    EXERCISE CAUTION
    Ashwinder Singh feels there is no stopping the prices from rising. "Property prices have outperformed equities, currency and bonds by a wide margin. As long as the Indian economy continues to grow and Indians continue to gain purchasing power, prices are likely to continue to rise," he says.

    Chaudhry, while he is positive on real estate as an investment option, says investors should exercise caution while taking purchase decisions. "Real estate is and will remain a good investment option as prices do not fluctuate drastically. But caution should be exercised as it is the hard earned money of customers, and there are developers out there who are working beyond what their balance sheets," he says.

    Raghavan of IIFL feels that a real estate fund like the one he runs can help investors even out the risk of putting money in a single property. "Investors need not be restricted to a single property. They can invest in a real estate private equity fund. This way their money will be invested in more secure structures and risk better mitigated (as the same money will be spread over five-six underlying investments). Investors can also benefit from the expertise of professional fund managers for sourcing the best projects from across the country," he says.

    Raghavan feels returns are likely to remain high in and around the urban centres, namely Mumbai, Delhi, Bangalore, Chennai and Pune. Emerging Tier-2 cities such as Ahmedabad, Baroda, Nagpur, Jaipur and Chandigarh also offer select investment opportunities.

    Source:
    Investing in real estate? Choose carefully for steady returns - Business Today

    Leave a comment:


  • findnixcy
    replied
    Hi ALL

    First of all, dont be fools to think that home sales and prices will go down!! because of recession or crash bla bla..

    If you are serious about home thne just go for it than waiting for price to come down. Its will never come down!!!

    Its gud to have information via reviews from various forums including IRE but then you have to be practical.

    You cannot expect a perfect project. somewhere one has to trust be it builder or band name. Just by going with the reviews and debating that they are charging more than expected, we as buyer are going to be looser.

    fact is if you dont buy some one else buys it and then in the end price rises and we regret.

    In the process of saving a mere amount of ~5 lacs when we are ready o pay 30+ lacs for a project we dont proceed with buying and hence the ewait for home continues

    I was in similar situation when I left a project in 2004 in Sultan palya,RT nagar were the builder was quoting 17 lacs and I dropped it thinking he was charging 2 lacs more. Today I have invested 40+ in prelaunch to get a home by end of 2013.

    Situation never changes. These discussion will continue even when new generation comes.

    Note:- Take the risk, what to do we r living in such situation where we have to take risk.

    Leave a comment:


  • Gaurav2k101
    replied
    Originally posted by gkannan16 View Post
    This is the piece of advice to potential buyers.....

    (1) All major players like (MantrX, PXrva, SXbha etc) have cash reserves in 1000s of crores (thanks to impatient, hurried buyers who have contributed for their great profits), so even when the projects doesnt sell quickly they will not be in hurry to reduce the price. Once the price is fixed, they more or less will keep it same, nevertheless the demand is there or not. In other words, the prices are mostly decided or artificially boosted by real estate goons than any material costs. We all r main reason for that though.

    (2) I contest the point the prices are not going down. I went and saw PXrva biglands in Kanakpura road 3 months back, the quoted rate was 3750 per sq ft. Now the price is 3490. Same for the mid(dle)town which was quoted 4400 per sqft in prelaunch and now it is 4300 bcoz no takers for 3 BHK at the rate of 1cr.

    (3) SXbha ElXte even after launching it for more than 2 years, still flats are vacant and they called me in several times despite i am showing no interest.

    (4) There are always a mad crowd in the range of 40 to 70l to buy 2BHK of 1200 sqft range, so these 2BHK will get quickly booked and will give the artificial picture of high demand. But once it crosses that 70l mark, there is a dull demand and i am sure most of the crowd wont have capacity for that.

    Now, never be in hurry even if the entire world hell urging and boosting the market price artificially. Take your time, do good research and decide upon with cool head. Bcoz the money you put in is hard earned one, and also by arbitrarily buying some branded flats for high rates, you are also reason for the artificial market price boom.


    Think twice, if one guy makes 1000 crore in one year (Sxbha's turnover in 2010-2011) by just constructing flats, then obviously he is giving it at extra ordinarily hyped prices than a construction cost. Now you come out of ariport mainroad in both sides you can only see big big flashing real estate boards. In other words, it is very very high money earning market for the owners with reasonably small investments.

    If everyone would have been responsible in deciding, we would have not been in the present mess what we are in right now.

    If it is really worth of money then only book please.

    Just my 2 cents.
    Very interesting thoughts... Agree to it to some extent ...

    Actually projects you mentioned are a bit far as of now ....

    The prices are shooting up in following locations :
    1) Hebbal
    2) ORR
    3) Sarjapur
    4) Whitefield
    5) Harlur road

    Again this is a inflated price or not but I have seen couple of my colleagues buying a 2BHK at 75+reg lakh. I mean this is high for any means and this again will go up to 80-85lakh within next 3-6 months.

    Leave a comment:


  • gkannan16
    replied
    This is the piece of advice to potential buyers.....

    (1) All major players like (MantrX, PXrva, SXbha etc) have cash reserves in 1000s of crores (thanks to impatient, hurried buyers who have contributed for their great profits), so even when the projects doesnt sell quickly they will not be in hurry to reduce the price. Once the price is fixed, they more or less will keep it same, nevertheless the demand is there or not. In other words, the prices are mostly decided or artificially boosted by real estate goons than any material costs. We all r main reason for that though.

    (2) I contest the point the prices are not going down. I went and saw PXrva biglands in Kanakpura road 3 months back, the quoted rate was 3750 per sq ft. Now the price is 3490. Same for the mid(dle)town which was quoted 4400 per sqft in prelaunch and now it is 4300 bcoz no takers for 3 BHK at the rate of 1cr.

    (3) SXbha ElXte even after launching it for more than 2 years, still flats are vacant and they called me in several times despite i am showing no interest.

    (4) There are always a mad crowd in the range of 40 to 70l to buy 2BHK of 1200 sqft range, so these 2BHK will get quickly booked and will give the artificial picture of high demand. But once it crosses that 70l mark, there is a dull demand and i am sure most of the crowd wont have capacity for that.

    Now, never be in hurry even if the entire world hell urging and boosting the market price artificially. Take your time, do good research and decide upon with cool head. Bcoz the money you put in is hard earned one, and also by arbitrarily buying some branded flats for high rates, you are also reason for the artificial market price boom.


    Think twice, if one guy makes 1000 crore in one year (Sxbha's turnover in 2010-2011) by just constructing flats, then obviously he is giving it at extra ordinarily hyped prices than a construction cost. Now you come out of ariport mainroad in both sides you can only see big big flashing real estate boards. In other words, it is very very high money earning market for the owners with reasonably small investments.

    If everyone would have been responsible in deciding, we would have not been in the present mess what we are in right now.

    If it is really worth of money then only book please.

    Just my 2 cents.
    Last edited September 9 2012, 10:20 PM.

    Leave a comment:


  • avinshiv
    replied
    That's right

    That's right. Up curve with higher gradient has started again. I hope it doesn't take a 45 degree plus trajectory. I personally know a lot of colleagues and friends who are waiting to jump into the buying market. I think there's a large population waiting on the sidelines. I hope the takeoff is smooth and doesn't result in sonic boom.

    Leave a comment:

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