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What is the Impact of IT Sector Downfall on Real Estate?

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What is the Impact of IT Sector Downfall on Real Estate?

Last updated: February 25 2009
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  • #41

    #41

    Re : What is the Impact of IT Sector Downfall on Real Estate?

    Originally posted by rajjelo2000 View Post
    Hi,

    This is Raj, very new to the forum and I would like to make a comment on my experience (very recent) on the Downfall market of RE. I was in a search of a land or an good apartment (I mean to say with better landscape) but was finally not Convinced to go for an apartment in and around Velachery. 2 months back we saw a piece of land very close to the Velachery By-pass as well as to the Vijaya nagar bus stand which was over priced as 110 Lakhs for a 3950 Sqft land (3 of us were planning to share the land and construct in it) but then we realized that we are in the verge to enter into the recessionary period and the idea has just stepped out of our mind in the whole thinking about the financial difficulties. Now after more than 2 Months we got a call from broker with an asking price of about 75Lakhs who roughly said it more than 1.5 grounds near to 1.75 Ground and gave a different address (brokers address). So we again had a thought of visiting their which made us to get surprised that we were visiting the same place which we visited before 2 months(To exactly say it was on October 18th or 19th) because the broker gave us his address we didn’t have any clue that we are heading towards the same land. We are again considering the purchase but seems like we are officially going to enter the recessionary period only after the second Quarter of 2009 .


    This really shows the downtrend of the RE and the brokers boost up value in the RE. I have myself witnessed at least of 32% down trend towards the plot cost.


    My kind advice for some of the well wishers here would be, please wait for a year or so and then think of buying an asset let it be house or an appartment or an Plot. From a reliable source of mine I have got an information that the Flat promoters (Big ones) have plans to increase 100rs/sqft just to fakely cook up the notebooks so that they can falsely and even if it takes a Little more time to sell the apartments this extra 100/sqft will help them in paying their excess Interest towards the bank loans caused towards the delayed sales. So They think they will get the same amount on money what they were planning to get earlier as well as the excess interest will be pushed on to the heads of the Buyer.

    Only if there is a No Buyers Sign to this cooked up price for a handsome period (Say for about a year) can bring the cost down to earth, until then there will be many buyers loosing their hard earned money to the Greedy RE or Brokers.
    I guess you are talking about the lands in Ram Nagar North/South Madipakkam.
    Velachery bypass, Vijayanagar bus depot, Velachery Metro, 80 feet road connecting GST road are the attractions of that area and I think I have written about 'em all in one of my posts.

    If you are talking about that area, the prices have been over quoted to you when you first saw them. Everybody in that area knows that 2400 sq.ft land was being sold for 55L flat rate last year.
    Now that they seem to have come up with their usual price to you guys. AFAIK the brokers are now willing to make a bargain, but not so huge as 20% or more. depends on how serious the buyer is... and there are plenty of lands around.

    I visited the place thrice during the end-november and start-december weeks just to see how the area looks like during that heavy rain. And believe me, It was damn ugly and I will never buy a land in that area even if they sell it for 30L per ground.
    Just google 'madipakkam ram nagar flood' and check out the first result - It showcases a rainy day with beautiful pictures.

    If it is Ram Nagar South, sorry I can't comment it, you need 24X7 room freshners, repellents and dust blockers to avoid the garbage burning smell and associated dusts and diseases of course.

    Have fun!

    Comment

    • #42

      #42

      Re : What is the Impact of IT Sector Downfall on Real Estate?

      Why are my replies not getting posted ?????


      I typed some 3 paragraph full of contents and submitted earlier and nothing comes into the discussion .

      This is my 4th Try

      Comment

      • #43

        #43

        Re : What is the Impact of IT Sector Downfall on Real Estate?

        Originally posted by rajjelo2000 View Post
        Why are my replies not getting posted ?????


        I typed some 3 paragraph full of contents and submitted earlier and nothing comes into the discussion .

        This is my 4th Try
        dear friend

        Dont take long time to post your message

        You may type it in note pad and after reading it copy and paste it into this forum's column.

        I believe this way without fail you can post your replies.
        thanks

        chataara

        Comment

        • #44

          #44

          Re : What is the Impact of IT Sector Downfall on Real Estate?

          Originally posted by rajjelo2000 View Post
          Why are my replies not getting posted ?????


          I typed some 3 paragraph full of contents and submitted earlier and nothing comes into the discussion .

          This is my 4th Try
          i was waiting for the brokers number too, rajello pls post it

          Comment

          • #45

            #45

            Re : What is the Impact of IT Sector Downfall on Real Estate?

            Originally posted by abk View Post
            this thread is about how much downfall in RE from peak prices(obviously).
            everybody can calculate "if it falls by 20% it has to gain 25%".
            my point is if you want to buy a house(for living) you should buy if your preferred location has corrected by about 15%. living is not about the price alone it includes your preferences,fancies,your dear ones near,temples,schools,entertainment,established neighbourhood,security etc.
            a diff of 10-15% is overlooked for places of preference.
            you should look for 3 things when buying a house

            1)location 2)location and 3)location
            Thanks for giving the promoters/buyers perspective.
            Location can make fraction of people to overlook the price.

            From a buyers view point, Value for money and the ability to repay will take precedence than any other factor.

            Think of the people who buy land/apartment which had been already inflated to sky-high price(300 to 400 % in 2-3 years). Will they be able to pay the EMIs for decades where there is no security for jobs/salary . It will only inflate the EMIs . Only good thing what will happen is that the damage is restricted to only the buyer unlike Satyams case where lacs of investors have been shattered .

            BTW , All those high-end projects in OMR have the location advantage ?

            Do they have our dear ones near, temples,schools, entertainment, established neighbourhood,security etc.

            Do you think they are correctly priced based on Location ? If not what they are worth of ?

            What majority of the buyers are bothered about are

            1) Value for money.
            2) Infrastructure (Good Roads/Electricity/Water and Boats )
            3) Security
            4) Ability to repay etc...

            Comment

            • #46

              #46

              Re : What is the Impact of IT Sector Downfall on Real Estate?

              Originally posted by chataara View Post
              dear friend

              Dont take long time to post your message

              You may type it in note pad and after reading it copy and paste it into this forum's column.

              I believe this way without fail you can post your replies.
              thanks

              chataara
              I do the same, but sometimes it go for admin's approval and never shows up.
              For instance, I wrote something really big replying Raajello about the area and so in the same thread before a week, and it is yet to appear. I will write a new thread probably.

              Comment

              • #47

                #47

                Re : What is the Impact of IT Sector Downfall on Real Estate?

                That is the reason I go for short but stiff replies

                Comment

                • #48

                  #48

                  Re : What is the Impact of IT Sector Downfall on Real Estate?

                  Originally posted by Nataraajg007 View Post
                  That is the reason I go for short but stiff replies
                  And you became a senior member in a short span, wow!

                  Comment

                  • #49

                    #49

                    Re : What is the Impact of IT Sector Downfall on Real Estate?

                    Originally posted by gone_mad View Post
                    And you became a senior member in a short span, wow!
                    Senior or junior does not matter. What you ink is the matter

                    Comment

                    • #50

                      #50

                      Re : What is the Impact of IT Sector Downfall on Real Estate?

                      Originally posted by gone_mad View Post
                      And you became a senior member in a short span, wow!
                      Dear gone_mad,

                      When you cross some specific number of messages, you become senior member. Their messages are getting in as given. This is what I noticed here.

                      ks2071746

                      Comment

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