Friends,

The peak time for Chennai Real estate in chennai is over.

If chennai RE is at peak anyone can sell their property in no time.
In 2007 everyone was running after land. It was like getting 'sundal' at vinayagar temple.
Banks also gave loan like giving 'sundal' at temples. Now banks are not able to get back the loan amount.
They dont know for sure the amount of non performing loans.
Banks are in denial mode in giving loans. Not only that. people also are not in loan buying mood.
They have lost their confidence about repaying the loans.
Those who have accumulated black money dont want to invest in 'non performing' properties.
Because of various reasons like these, peak time for Real estate in chennai is over.

Everywhere owners are telling rate at their will. Its like telling "Ayiram... rendayiram... naalayiram....".
Those who realised the facts are gradually reducing the price. But in most of the cases, plots are lying unsold.

If one is willing to sell a plot, and if there are many buyers we can say there is demand.
If there is demand from many sides, there will be price escalation.
But no demand... No increment in price. But rebate sale has started without buyers.
thanks
chataara

chataara
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  • Here's the link to the article regarding the vacant residential spaces.



    It says 42% lie vacant in Chennai.I believe they have taken into account the proposed and underconstruction projects also.

    The builders are surely blinking without knowing how to handle it.

    I feel its apt to quote and remember the Tamil saying

    "Thirudanakku iruttula thel kottuna madhiri"

    which means plight of a thief who gets bitten by a scorpion in the dark while stealing.

    I am going to try and attempt to counter argue your points typically how a builder would do.

    The following is purely fictional, any resemblence to reality is purely coincidental.


    1. How long do you think it will take for this volume to be absorbed at a current volume of say 10% to 20% of peak year volumes? Will it take 5 years? More?


    The maximum correction possible has already happened in the last 2 quarters and the prices are now reasonable and have stabilized.The industry is on revival mode.

    Any further 10-20% reduction will only reflect as effective interest payout on home loan principal because of relaxed interest rates due to low inflation.

    People wanting to save on rent by moving to suburbs and cost of travelling by moving near to their workplace will result in sharp rise in demand and price will shoot up again very soon.

    All vacant residential flats will be sold out before you know .Waiting is counter productive, Buy Today or repent tomorrow.Take loan from our bankers and become a slave and slog for life.Run! Hurry...


    2. During this stage of inventory selloff, do you agree that the RE industry is in a Catch 22 situation that volumes are tied to prices and higher volumes will come only at lower prices, so, either prices fall and volumes pick up to reduce inventory OR prices stagnate making the inventory closeout phase much longer (many years).


    We have adjusted to market realities and changed our strategy to focus on affordable housing.We are commited towards completing one project at a time and then move on to the next.(If we ever complete the current one!)

    Avail attractive pre-launch rates under "price protection" plans and with promised additional sops like pre-emi, free furnishing, club memebership, car park(This is a limited period offer.Conditions apply).

    Phase I and Phase II booking already closed (Nothing much to enter so closed it), Phase III open at just 250/sqft more than phase II.Rush prices are increasing next week.

    (Oops! phase III was not in the proposed plan, what will we tell when existing customers demand why common area/park is being used to construct new block?should we tell them We only sold living spaces in the air and still hold the land to ourselves by registering only the apartment number and built up area dimensions.What math do the customer know? all they want to hear is 3Cr 4cr profit in five years.)

    If its still not selling, we will sell it thorugh our real estate partners at half the price claiming it to be resale.We can claim we never reduced the price..it was some investor who got corporate/special discount and is passing it onto the customers..


    3. Under these circumstances, what do builders do to keep business ticking? Remember, they have huge inventories riding on huge debt positions. So, if they drop prices to clear inventories, they will take big hits in revenues and profits and make losses for some years. If they hold on to prices, they will suffer in terms of interest on debt ripping off big chunks from their revenues and profits.


    The debt position is well under control.Liabilities has been worked out with the banks by restructuring the loans and disposing considerable asset holding and calling off projects.

    We are seeing many bookings and the response has been overwhelming for the new projects.Next year we will book large profits making up for the losses for this year.Enough liquidity has been generated to hold the prices longer.

    If the cash crunch is still bad, we have many new projects in the pipeline to announce and generate interest free money to hold up.

    We have lobbied enough that whichever government is formed at the centre, will immediately announce a bailout for realtors.After elections the Reality is Realty is coming to power.
    CommentQuote
  • India's fiscal deficit risk is a myth

    Originally Posted by wiseman


    An all this is assuming Credit situation becomes like in 2007, which, under present conditions of Fiscal Deficit and stagnating incomes, seem quite unlikely!

    Catch22!!!:D

    cheers


    There is a myth created by western media that India's fiscal deficit will weaken India and make its assets to lose value. The same western analysts (Moodys, S & P, Fitch etc) glorified citibank and merill lynch and gave AAA ratings to subprime mortgages a few years back which are absolute failures today, what shame do they have on commenting on India.

    US is broke and in this frustation they are attacking India.

    What is fiscal deficit: The fiscal deficit is the difference between the government's total expenditure and its total receipts (excluding borrowing). In India this fiscal deficit is financed by borrowing from Banks both PSU and Private. Every bank, both PSU like SBI or private like HDFC bank have to keep a percentage of their deposits in government securities(g secs). Government of India pays very high interest on this g secs to Banks. This high interest paid by government on g secs to banks creates some fiscal deficit. The most important point is the lenders are our own banks. So this small fiscal deficit of government also benefits our banks, as they earn high interest on g secs. This is why our banks like SBI and HDFC are standing strong when western banks are collapsing.

    Whereas in the US they have huge deficit which in more then their GDP. Unfortunately for america, their government did not just borrow from its bank deposits but from foreigners like Chinese, Russians, Japanese. Their government borrowed more then it could ( to maintain high salaries and lifestyle of americans) which meant their own banks were not enough to finance, so they borrowed heavily from aboard like Chinese, Japanese and Russians. Now these creditors like chinese, russians have closed the tap, as they are worried about the value & safety of trillions of dollars they have already lent. US is now being treated like a fraud after subprime crises and has lost credibility which is hard to recover.

    The foolish Chinese, Russians who put most of their national savings in just one asset, US treasuries instead of diversifying will also suffer as US dollar falls. This is where government of India and its IAS officers are smart inspite of all criticism from its own people, India has put only a small part of national savings in US treasuries. India diversified its national savings by pumping most of its savings back into India via LIC. LIC is the largest institutional investor and lender in india and has invested or lent directly or indirectly in Real Estate. LIC will not reduce the prices. If some builders can't repay back the debt, LIC or its counterparts SBI, HDFC will simply take over the unsold landbanks and unsold apartments and keep prices steady.

    So don't compare India and US as it is like comparing a pp les with oranges.

    Real Estate in India including Chennai is the best asset class and current correction is temporary and will maximum fall by 20% and will rise again. Growing urbanization, educational levels, aspirations and new infrastructure like airports ( the new Bangalore and Hyderabad airports are fantastic), ring roads, toll roads make fundamentals very strong for India's RE.
    CommentQuote
  • Originally Posted by contra
    There is a myth created by western media that India's fiscal deficit will weaken India and make its assets to lose value. The same western analysts (Moodys, S & P, Fitch etc) glorified citibank and merill lynch and gave AAA ratings to subprime mortgages a few years back which are absolute failures today, what shame do they have on commenting on India.

    US is broke and in this frustation they are attacking India.

    What is fiscal deficit: The fiscal deficit is the difference between the government's total expenditure and its total receipts (excluding borrowing). In India this fiscal deficit is financed by borrowing from Banks both PSU and Private. Every bank, both PSU like SBI or private like HDFC bank have to keep a percentage of their deposits in government securities(g secs). Government of India pays very high interest on this g secs to Banks. This high interest paid by government on g secs to banks creates some fiscal deficit. The most important point is the lenders are our own banks. So this small fiscal deficit of government also benefits our banks, as they earn high interest on g secs. This is why our banks like SBI and HDFC are standing strong when western banks are collapsing.

    Whereas in the US they have huge deficit which in more then their GDP. Unfortunately for america, their government did not just borrow from its bank deposits but from foreigners like Chinese, Russians, Japanese. Their government borrowed more then it could ( to maintain high salaries and lifestyle of americans) which meant their own banks were not enough to finance, so they borrowed heavily from aboard like Chinese, Japanese and Russians. Now these creditors like chinese, russians have closed the tap, as they are worried about the value & safety of trillions of dollars they have already lent. US is now being treated like a fraud after subprime crises and has lost credibility which is hard to recover.

    The foolish Chinese, Russians who put most of their national savings in just one asset, US treasuries instead of diversifying will also suffer as US dollar falls. This is where government of India and its IAS officers are smart inspite of all criticism from its own people, India has put only a small part of national savings in US treasuries. India diversified its national savings by pumping most of its savings back into India via LIC. LIC is the largest institutional investor and lender in india and has invested or lent directly or indirectly in Real Estate. LIC will not reduce the prices. If some builders can't repay back the debt, LIC or its counterparts SBI, HDFC will simply take over the unsold landbanks and unsold apartments and keep prices steady.

    So don't compare India and US as it is like comparing a pp les with oranges.

    Real Estate in India including Chennai is the best asset class and current correction is temporary and will maximum fall by 20% and will rise again. Growing urbanization, educational levels, aspirations and new infrastructure like airports ( the new Bangalore and Hyderabad airports are fantastic), ring roads, toll roads make fundamentals very strong for India's RE.


    Contra,

    Your posts have lots of substance.keep up your good work.

    I agree with you that RBI is indirectly financing the fiscal deficit.RBI cannot directly fund the government so they do by asking banks to buy govenment bonds and securities.But that is only 30-40% of the amount that the bank holds.

    The current government was borrowing largely from the market because it has exhausted the limit of bonds they can issue.Moreover they are not in a position to give high interest on the bonds anymore due to the same deficit and debt position.

    The RBI/Government bonds were issued for the amount of rupees generated for each dollar that was bought for many years to maintain the rupee advantage for exports.

    The problem now is how the future government is going to handle the widening deficit for the coming years.They have very limited options, some of which are

    1. Monetizing(Printing of money) the Fiscal deficit at the cost of inflation.
    2. Use the money generated from Market stabilization schemes (MSS) for which a bill has to be passed in the parliment declaring financial emergency enabling RBI to directly loan the government.
    3. Increase tax and reduce subsidies to private and corporates and salaried people.
    4. Reduce salary/pension of government employess.
    5. Reducing Expenditure by putting off growth and expansion plans
    6. Allow the foreign institutional investors, or FIIs, a larger play in government debt

    which do you think the government will adopt?Any measure will surely affect growth of the economy.
    CommentQuote
  • Originally Posted by contra
    There is a myth created by western media that India's fiscal deficit will weaken India and make its assets to lose value. The same western analysts (Moodys, S & P, Fitch etc) glorified citibank and merill lynch and gave AAA ratings to subprime mortgages a few years back which are absolute failures today, what shame do they have on commenting on India.

    US is broke and in this frustation they are attacking India.

    What is fiscal deficit: The fiscal deficit is the difference between the government's total expenditure and its total receipts (excluding borrowing). In India this fiscal deficit is financed by borrowing from Banks both PSU and Private. Every bank, both PSU like SBI or private like HDFC bank have to keep a percentage of their deposits in government securities(g secs). Government of India pays very high interest on this g secs to Banks. This high interest paid by government on g secs to banks creates some fiscal deficit. The most important point is the lenders are our own banks. So this small fiscal deficit of government also benefits our banks, as they earn high interest on g secs. This is why our banks like SBI and HDFC are standing strong when western banks are collapsing.

    Whereas in the US they have huge deficit which in more then their GDP. Unfortunately for america, their government did not just borrow from its bank deposits but from foreigners like Chinese, Russians, Japanese. Their government borrowed more then it could ( to maintain high salaries and lifestyle of americans) which meant their own banks were not enough to finance, so they borrowed heavily from aboard like Chinese, Japanese and Russians. Now these creditors like chinese, russians have closed the tap, as they are worried about the value & safety of trillions of dollars they have already lent. US is now being treated like a fraud after subprime crises and has lost credibility which is hard to recover.

    The foolish Chinese, Russians who put most of their national savings in just one asset, US treasuries instead of diversifying will also suffer as US dollar falls. This is where government of India and its IAS officers are smart inspite of all criticism from its own people, India has put only a small part of national savings in US treasuries. India diversified its national savings by pumping most of its savings back into India via LIC. LIC is the largest institutional investor and lender in india and has invested or lent directly or indirectly in Real Estate. LIC will not reduce the prices. If some builders can't repay back the debt, LIC or its counterparts SBI, HDFC will simply take over the unsold landbanks and unsold apartments and keep prices steady.

    So don't compare India and US as it is like comparing a pp les with oranges.

    Real Estate in India including Chennai is the best asset class and current correction is temporary and will maximum fall by 20% and will rise again. Growing urbanization, educational levels, aspirations and new infrastructure like airports ( the new Bangalore and Hyderabad airports are fantastic), ring roads, toll roads make fundamentals very strong for India's RE.


    US has fiscal deficit of around 12% of their GDP and not more than thier GDP as you pointed.Incidentally India also has fiscal deficit of 12% of gdp if you include central and state government deficits and off budget oil bonds and fertiliser subsidy.

    Interest rate on government bonds were droping drastically from last year and only from feb 2009 started going up.So that is not the reason why Indian banks are relatively safe.They are safe because they didnt have exposure to subprime loan and you need to appreciate RBI again for this.

    India does not hold huge US treasuries as we dont have surplus like China and still our forex reserves is dominated by dollar.So there is nothing to praise the government for this as they have not done anything in this boom period to generate surplus.RBI was doing a great job in monitoring the economy and they did lot of things which prevented a bubble like in US.

    As per I know LIC does not invest in real estate.Can you send me the figures how much they have invested in Real estate and when.

    As per taking over of properties by banks,they will try to sell land as soon as possible if they get back their principal. Already private banks are going slow on lending to home loans,vehicles,personal loan,credit cards fearing increase in NPA.

    As per Infrastructure is concerned India has the worst infrastructure with badly choked roads,no pavements,insufficient public transport etc.
    CommentQuote
  • Originally Posted by contra
    There is a myth created by western media that India's fiscal deficit will weaken India and make its assets to lose value...........

    So don't compare India and US as it is like comparing a pp les with oranges.

    Real Estate in India including Chennai is the best asset class and current correction is temporary and will maximum fall by 20% and will rise again. Growing urbanization, educational levels, aspirations and new infrastructure like airports ( the new Bangalore and Hyderabad airports are fantastic), ring roads, toll roads make fundamentals very strong for India's RE.


    Dear friend,

    A really very interesting argument/post.
    I also agree, the RE situation in US and India are vastly different
    and US happenings will not repeat in India in such scale, though we will get affected to some extent in RE arena.

    ks2071746
    CommentQuote
  • You can't wish away Fiscal Deficit, Contra!

    Originally Posted by contra
    There is a myth created by western media that India's fiscal deficit will weaken India and make its assets to lose value. The same western analysts (Moodys, S & P, Fitch etc) glorified citibank and merill lynch and gave AAA ratings to subprime mortgages a few years back which are absolute failures today, what shame do they have on commenting on India.

    So don't compare India and US as it is like comparing a pp les with oranges.

    Real Estate in India including Chennai is the best asset class and current correction is temporary and will maximum fall by 20% and will rise again. Growing urbanization, educational levels, aspirations and new infrastructure like airports ( the new Bangalore and Hyderabad airports are fantastic), ring roads, toll roads make fundamentals very strong for India's RE.



    Contra (and others),

    Just because the US and others are much worse off, that in itself is not an argument to wish away the Fiscal Deficit, which has grown sharply lst year! From a 2.5% that Chidanmaram promised during the Budget, it is likely to cross 12%, which is nearly a 400% jump. Please aso remember that all this Fiscal pumping has had minimal effect in bringing growth back on track to the one wished for. If GDP growth falls off as demand crashes (both domestic as well as exports), there is little that the Govt can do by way of further sops since that will push FD far in excess of what the others are facing. India has exhausted that route of priming the economy and has few other options left. So, despite all the bravado, we are actually on a knife's edge and any drop in economic output in the next 6 - 9 months will see us in much deeper trouble as our Interest payment will shoot up in relation to our ability to service it. Are we talking big Inflation here with slack demand? Stagflation?

    Also remember that, if US Fiscal Deficit is pushing 12%, so is ours! And also remember that we have rapidly connected with the world so that any blow to other countries also has knock on effects. Latest estimate of Exports by the Govt puts it at $170 Billion compared to the hoped for $200 Billion. So there has been a 15% drop from targeted exports growth already.

    Ultimately these deficits have the habit of devaluing the currency and we have already started seeing the impact of debasement of currency all over the world. From the complete anihilation of Icelandic Krona to the commencement of declines in Yen, Swiss Francs, GBP, etc, we are possibly seeing the global debasement of all currencies on a competitive basis - this is also called the "Beggar Thy Neighbour" policy.

    A combination of declining GDP growth (if not actual declines in GDP), sharp and sustained exports decline, massive and sustained pullout of hot money by FIIs will see a lot of pain in India as well. We have survived on our savings and quite a bit of luck - besides fairly good RBI intervention - so far. How long can we withstand the global economic ill-winds?

    Let us not be overconfident, just because others have messed up a little more than us. Also remember that the China and US and EU that you are trashing so easily also happen to have far more wealth and influence and can nd probably will bounce back in the distant future. If we have a hard landing and sustain low growth for a while, do you think we can do the same too?

    Let us see.

    cheers
    CommentQuote
  • What ? India's fiscal deficit is a myth created by Moody's, S&P,Fitch etc., ? LIC will buying RE to keep the prices steady ? Indian government bonds are better than US Treasuries ? True, Indian government bonds yields more than US Treasury, but that's bad news actually.

    I don't think so. But I am not going to argue here. Let me cut to the chase.

    Yes, US RE market is different from Indian RE market. There the % of people taking out a mortgage to buy a house or apartment is very high compared to the indian market. Even if they take out a mortgage they were taking it well within their means, until few years ago.

    The problem in the US has moved beyond the RE. It transformed into credit crunch, which then has caused the banks to tighten lending, job losses followed, lower consumer spending and which has now resulted in low or contracting growth (i.e.,exports and imports). (Even) if you ignore the RE, others could be very much felt in India also. Don't you think ? The only difference is that the scale of the problem is lesser in India.

    With the upcoming election, cash will flow in the economy, when the political parties go on a spending spree over the next few months. It could even push inflation up by a notch or two, but it will be a short term rebound.

    We are going towards wider fiscal deficit because of less tax revenue due to job losses in many manufacturing industries esp. textile, etc., exports are expected to remain sluggish. The fiscal deficit scenario, things are unlikely to change this FY.

    Much of what is said and written in Hindu, Economic times and Financial express is rubbish. Simply because there is no gauge to measure RE. When most of the transactions are happening in black money (i.e., without the knowledge of the government about the cash flow in the economy), there is not enough data available to gauge it. Much of what is said is hearsay and it is very difficult to back it up with data. I am not talking about few hundred transactions, but data for few hundred thousand transactions in India very hard to get or may be even impossible.

    There is too much focus on the builders at the moment. We could see a bottom in a few months or may be we have hit bottom already. After the western companies get some breathing space, they will think about cutting costs which this time around could be more than just outsourcing. We may soon have KPO and LPO becoming a serious business in India and competing with s/w companies. Or even overseas companies establishing base here in India. Just like how RBS is creating jobs in Gurgaon and cutting down a whopping 9000 jobs in UK in one go (out of 27,000).

    If you give this theory a shot, we may soon be creating jobs late this year or next year. Much of RE (i.e., flats) is targeted surrounding these IT/ITES jobs only. Many young people today have a taste for RE and still believe RE is the best asset class in India and will go that way.

    You see, fiscal deficit could widen and RE (i.e., flat) could stagnate or even pickup.
    CommentQuote
  • Originally Posted by wiseman
    Nats,

    I was not telling you what to do. I was merely asking you why you are not doing what you keep threatening to do? :D Maybe its like your behavior of promising to sell to the prospective buyers, only to turn around at the last minute and give some silly reason to back off. That, my friend is true insecurity! :o

    As you can see, there are many on this forum who have benefited from my "bear" talk. I do not see anyone yet who seems to have benefited from your "bull" crap!!! :D Can you point anyone who has bought on the basis of your advice and actually made some gains with prices going up?

    And with some benefit acruing to general public, don't you think I rightfully reserve the right to use the term "wise"? Though its you rather than I who seems to be needled by the term (as you know I never once took any credit for the word! :D)

    Ultimately, my "bear" crap (as you call it) seems to have had more value till date over your "bullcrap"! :D

    Its you who needs to feel insecure.

    cheers

    Who benefited from you bear crap my friend? You mean your strong hand friends who bought cheap land from gullible weak sellers? You are a cheat for sure but the way you are making virtue of cheating is fantastic.
    Now if that is WIse you are right! But well the word for a fox is not actually Wise. It is Cunning or in short Con. So you are proving to be a Cunning ConMan. RIght?
    Did you see Contra talking of market moving up and time to buy RE and of Nabhishek expecting a move up? So your days seem to be numbered. You have failed in your mission to confuse weak hands into selling out. However the few who sold out listening to you might actually be searching for you. So you will lie low and disappear. Next time you will reappear like Lovebird in a new avatar! RIght?
    CommentQuote
  • Don't talk crap. Show me the price rise in actual sales

    Originally Posted by Natarajg007
    Who benefited from you bear crap my friend? You mean your strong hand friends who bought cheap land from gullible weak sellers? You are a cheat for sure but the way you are making virtue of cheating is fantastic.
    Now if that is WIse you are right! But well the word for a fox is not actually Wise. It is Cunning or in short Con. So you are proving to be a Cunning ConMan. RIght?
    Did you see Contra talking of market moving up and time to buy RE and of Nabhishek expecting a move up? So your days seem to be numbered. You have failed in your mission to confuse weak hands into selling out. However the few who sold out listening to you might actually be searching for you. So you will lie low and disappear. Next time you will reappear like Lovebird in a new avatar! RIght?


    Nats,

    A couple of weeks does not make a trend. The markets are still 50% down from the peak even after this so-called rally.

    And all the filth you use as language does not add virtue to the crap you are dishing out about bullishness.

    Show me volumes anywhere near to even 50% of peak volumes. Show me prices above 2007/08 peak prices. Till then all the talk is just talk.

    I still insist that there are quite a few who have defered buying and will ultimately gain since they will be buying with greater guarantee of their jobs and repayment ability and most like also a lower price.

    Till then, provide data or let others post with data and keep your crap to yourself :).

    cheers
    CommentQuote
  • Dear Friends,

    Finally we have an official acceptance from the builders that all is not fine for them.

    Now they are requesting to end the waiting, soon they will be pleading.

    Unless they realize that price cuts are the only way to revive some interest, not many would survive.

    The following is a request from CREDAI.

    CommentQuote
  • Originally Posted by connect2sam
    What ? India's fiscal deficit is a myth created by Moody's, S&P,Fitch etc., ? LIC will buying RE to keep the prices steady ? Indian government bonds are better than US Treasuries ? True, Indian government bonds yields more than US Treasury, but that's bad news actually.

    I don't think so. But I am not going to argue here. Let me cut to the chase.

    Yes, US RE market is different from Indian RE market. There the % of people taking out a mortgage to buy a house or apartment is very high compared to the indian market. Even if they take out a mortgage they were taking it well within their means, until few years ago.

    The problem in the US has moved beyond the RE. It transformed into credit crunch, which then has caused the banks to tighten lending, job losses followed, lower consumer spending and which has now resulted in low or contracting growth (i.e.,exports and imports). (Even) if you ignore the RE, others could be very much felt in India also. Don't you think ? The only difference is that the scale of the problem is lesser in India.

    With the upcoming election, cash will flow in the economy, when the political parties go on a spending spree over the next few months. It could even push inflation up by a notch or two, but it will be a short term rebound.

    We are going towards wider fiscal deficit because of less tax revenue due to job losses in many manufacturing industries esp. textile, etc., exports are expected to remain sluggish. The fiscal deficit scenario, things are unlikely to change this FY.

    Much of what is said and written in Hindu, Economic times and Financial express is rubbish. Simply because there is no gauge to measure RE. When most of the transactions are happening in black money (i.e., without the knowledge of the government about the cash flow in the economy), there is not enough data available to gauge it. Much of what is said is hearsay and it is very difficult to back it up with data. I am not talking about few hundred transactions, but data for few hundred thousand transactions in India very hard to get or may be even impossible.

    There is too much focus on the builders at the moment. We could see a bottom in a few months or may be we have hit bottom already. After the western companies get some breathing space, they will think about cutting costs which this time around could be more than just outsourcing. We may soon have KPO and LPO becoming a serious business in India and competing with s/w companies. Or even overseas companies establishing base here in India. Just like how RBS is creating jobs in Gurgaon and cutting down a whopping 9000 jobs in UK in one go (out of 27,000).

    If you give this theory a shot, we may soon be creating jobs late this year or next year. Much of RE (i.e., flats) is targeted surrounding these IT/ITES jobs only. Many young people today have a taste for RE and still believe RE is the best asset class in India and will go that way.

    You see, fiscal deficit could widen and RE (i.e., flat) could stagnate or even pickup.


    Dear friend,

    Nice argument in this post of yours.

    ks2071746
    CommentQuote
  • Originally Posted by wiseman
    Nats,

    A couple of weeks does not make a trend. The markets are still 50% down from the peak even after this so-called rally.

    And all the filth you use as language does not add virtue to the crap you are dishing out about bullishness.

    Show me volumes anywhere near to even 50% of peak volumes. Show me prices above 2007/08 peak prices. Till then all the talk is just talk.

    I still insist that there are quite a few who have defered buying and will ultimately gain since they will be buying with greater guarantee of their jobs and repayment ability and most like also a lower price.

    Till then, provide data or let others post with data and keep your crap to yourself :).

    cheers

    Well well I did not even mean to say that Stock markets and RE are related. Since you harp such rubbish I had to show you your ignorance!
    CommentQuote
  • Originally Posted by nabishek
    Dear Friends,

    Finally we have an official acceptance from the builders that all is not fine for them.

    Now they are requesting to end the waiting, soon they will be pleading.

    Unless they realize that price cuts are the only way to revive some interest, not many would survive.

    The following is a request from CREDAI.

    How about this

    Rupee Pain Means Exporters Gain as Indians Beat China

    ]http://www.bloomberg.com/apps/news?pid=20601087&sid=aWk19bguGg88&refer=home

    This article highlights whatever I have been harping for months on this forum. Indian govt will let Rupee depreciate. So RE will not fall since with cheaper rupee salaries will be maintained and RE will be held. So the bears with their American imagination need to become genuinely Wiser than just stating themselves to be so! ROTFL.

    This article highlights whatever I have been harping for months on this forum. Indian govt will let Rupee depreciate. So RE will not fall since with cheaper rupee salaries will be maintained and RE will be held. So the bears with their American imagination need to become genuinely Wiser than just stating themselves to be so! ROTFL.
    CommentQuote
  • ="http://economictimes.indiatimes.com/News/News-By-Industry/Jobs/Residential-property-rates-may-fall-35-per-cent/articleshow/4387266.cms"]http://economictimes.indiatimes.com/News/News-By-Industry/Jobs/Residential-property-rates-may-fall-35-per-cent/articleshow/4387266.cms

    Realty brokers in India expect residential property prices to settle down at a 25-35% discount on the current listed prices over the next couple of



    months, according to a recent survey.

    The demand for homes remained muted in the otherwise busy season of January-March, the findings of the nationwide property brokers’ poll, conducted by financial services company Edelweiss, indicate. The only projects selling are those priced at least 25-30% lower as against the ongoing market rates, while real estate companies reluctant to slash prices are struggling to clear inventory.

    “Customers are coming back for deals. Prices have begun to consolidate at 30-35% discount to the list prices,” realty company Orbit Corp’s corporate strategy head Ram Yadav says.

    Some aggressively priced new projects, including Lodha’s project in Thane, HDIL’s in Andheri and Nirman Lifestyle’s Mulund project, are doing well in Mumbai. “HDIL’s Rs 7,651/sq ft at Andheri is a good price as compared to Rs 6,000/sq ft at which the state housing development authority MHADA is selling its flats in a similar area,” says Santosh Naik, MD and CEO of Disha Direct, a real estate marketing company.









    Property dealers, the report says, don’t see a recovery in the domestic realty market any time soon as buyer sentiment is expected to remain subdued due to the weak economic environment.

    According to the survey, 76% of the brokers expect prices to decline over the next three months and about 53% of them see the trend continuing over the next one year.

    City wise, Bangalore is the least pessimistic with 32% of the brokers surveyed having a negative price outlook over the next one year, while Chennai is the most bearish with 73% expecting a decline in realty value.

    Sales during the January-March quarter are expected to be much lower (less than 50%) than what they were in the corresponding quarter last fiscal.

    India’s largest real estate companies DLF and Unitech are faced with unsold inventory and increasing interest costs. Things do not seem to be getting better for at least another year for either of these developers.
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  • Originally Posted by nabishek
    Dear Friends,

    Finally we have an official acceptance from the builders that all is not fine for them.

    Now they are requesting to end the waiting, soon they will be pleading.

    Unless they realize that price cuts are the only way to revive some interest, not many would survive.

    The following is a request from CREDAI.


    Nice to see the acceptance.

    But there is no word for RE developers on what should be course of action they have to undertake.But hey blame the Govt ..Did they share/consult the Govt when they were making unscrupulous profits ? Yes Unless the developers realize that price cuts are the only way to revive some interest, not many would survive.

    The article says "With employees in the IT industry having formed 65 to 70 per cent of the consumers during the growth phase of the last three years, the housing market has been badly hit by the tech slowdown. “They don’t know if they will get their increments or if they will even hold on to their jobs. So there is a crisis of confidence about borrowing even if the interest rates do fall further… It is all causing a fear psychosis.”

    I have seen an self-proclaimed 'expert' here claiming here IT industry does not have a say on Chennai RE and still making false claims saying RE will not fall.Unless the developers bring down the prices they will not only survive but succumb.Lets wait for the real correction.
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