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Impact of Next Govt, on Bangalore RE

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Impact of Next Govt, on Bangalore RE

Last updated: May 16 2013
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  • Impact of Next Govt, on Bangalore RE

    As of now it seems Congress will be back in power unless BJP springs some surprises. I read on another thread that Congress coming back to power will result in slow down in RE prices indicating not good time for investors ahead?

    Please provide your feedback
  • #2

    #2

    Re : Impact of Next Govt, on Bangalore RE

    Slowdown in Real Estate prices and slow down of construction would actually be good in the long run. With apartments coming left and right and water being very scarce, moderation of real estate is urgently required. Also, if you just browse the posts on this site or any other Real Estate site, you can see that atleast 50% are investors/speculators hoping to make a killing in 1 year. This is unhealthy for any market and I am sure the situation will correct itself very soon with or without the BJP coming to power in Karnataka. I have seen posts where a person has never visited Bangalore but is considering investing 70 lacs in a pre-launch project in Bangalore based on tips on RE portals. This is an omnious sign that a correction is impending. When it will happen is anybody's guess. But in my personal opinion, 2BHK apartments of 65+ lacs and 3BHK for 80 lacs-1Crore is unsustainable and a 30-35% correction in RE prices will make housing affordable to the end users. Just my own thoughts.
    Last edited May 2 2013, 11:43 AM.

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    • #3

      #3

      Re : Impact of Next Govt, on Bangalore RE

      Apartment prices have become exorbitant with projects launching 5000 psft -10000 psft near hebbal donno people keep screaming Real estate buble will burst but can we expect some reality check on the prices and affordability

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      • #4

        #4

        Re : Impact of Next Govt, on Bangalore RE

        Personally, I feel that some sanity should/will prevail. To me current real estate investment scenario looks similar to housewives buying some stock based on a tip by a stock analyst. I can see many people blindly investing in real estate and that's why I feel a bubble is building. When the bubble will burst is quite hard to predict but the signs of a bubble formation are not difficult to see unless we are blinded by greed :-)
        Last edited May 2 2013, 02:00 PM.

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        • #5

          #5

          Re : Impact of Next Govt, on Bangalore RE

          Originally posted by yar.2007 View Post
          Apartment prices have become exorbitant with projects launching 5000 psft -10000 psft near hebbal donno people keep screaming Real estate buble will burst but can we expect some reality check on the prices and affordability
          People are buying near Hebbal and Yehlanka too based on news reports that appreciation is likely in next 5 years. They forget that the developer is already charging 5 years appreciated price NOW.

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          • #6

            #6

            Re : Impact of Next Govt, on Bangalore RE

            Nothing will change.

            If some thing bad happens in any sort,prices will remain stagnant...no one will give away for lesser price.

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            • #7

              #7

              Re : Impact of Next Govt, on Bangalore RE

              Originally posted by jsriram View Post
              Personally, I feel that some sanity should/will prevail. To me current real estate investment scenario looks similar to housewives buying some stock based on a tip by a stock analyst. I can see many people blindly investing in real estate and that's why I feel a bubble is building. When the bubble will burst is quite hard to predict but the signs of a bubble formation are not difficult to see unless we are blinded by greed :-)
              Agree. Similar to stock exchange of 06-07 when everybody thought Stocks are gonna touch 30K and the party is forever.

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              • #8

                #8

                Re : Impact of Next Govt, on Bangalore RE

                Originally posted by rameshh View Post
                Nothing will change.

                If some thing bad happens in any sort,prices will remain stagnant...no one will give away for lesser price.
                Panic can cause strange things. If even some % of IT flies, many people will be in panic selling mode.

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                • #9

                  #9

                  Re : Impact of Next Govt, on Bangalore RE

                  If there is any blow to S/W industry,if there are 4L jobs in s/w...indirectly 10L people are earning because of S/w industry.
                  Every one will have a problem.

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                  • #10

                    #10

                    Re : Impact of Next Govt, on Bangalore RE

                    One reason for the unreasonable appreciation has been greed. Many buyers are aware that many of the apartments are exorbitantly priced and there is no value for money. Inspite of that, many people still go ahead assuming that they will gets returns of 20-30% YoY. Also, I have seen quite a few advertisements where people(mainly by brokers and some high profile investors/speculators) are selling within 1 year (bought during pre-launch and selling at launch) at 30-40% appreciation. This is purely speculative buying. Another recent trend (like brigade Golden Triangle/Prestige Tranquility) is that the launch price is already built into the pre-launch price i.e. the pre-launch price includes all the price appreciation to be gained after getting necessary approvals and other associated risks. Somehow all the developments which may happen 5-10 years down the line are already factored into today's price!

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