Real estate boom peters out
5 Replies3233 ViewsLast Reply: 7 years ago
Rashmi
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Started 12 years ago
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- ^^ Strangely Enough the property prices are still out of reach of most common people . specially those with white money...
pathetic state of affairs ...CommentQuote0Flag - true, that also means that property prices won't increase further. I was talking a property dealer and he had a good explanation for this. People who have invested are those who :
a) Don't see any other avenue to invest black money, since stock market is all white now.
b) They are comfortably living and want to exit the property only after it makes them a good sum.
c) Some end users, who are not convinced to move since it works out to be the same cost living in a smaller rental accommodation.
So there is a varied class of people who are investors and thats the reason the rates are continuing to sustain. Frankly, I don't see rates coming down too much but with availability in abundance the end users have better choice.
I would suggest that if its not within your range, then you should think of buying a small piece of land in partnership and construct and occupy different floors. For the same area of flat the cost can come down by 50%.CommentQuote0Flag - All those who are expecting, analyzing weather the rates will come down.
Answer is Yes and No.
Rates today are high enough, but given the salaries in 2012, they may go little high too. Small corrections are happening daily here and there and will continue to happen.
Rate WILL GO DOWN but count 5-7 year span for that. The bug of over supply will hit metros of India for sure like it did to USA but it takes time. It could take more then 5-7 and may be 10 years.
Things always move slow when you expect more, and in RE, they always move too slow.CommentQuote0Flag - Originally Posted by jeetcpAll those who are expecting, analyzing weather the rates will come down.
Answer is Yes and No.
Rates today are high enough, but given the salaries in 2012, they may go little high too. Small corrections are happening daily here and there and will continue to happen.
Rate WILL GO DOWN but count 5-7 year span for that. The bug of over supply will hit metros of India for sure like it did to USA but it takes time. It could take more then 5-7 and may be 10 years.
Things always move slow when you expect more, and in RE, they always move too slow.
The population of India is so huge that there cant be a situation of oversupply. Even if there is oversupply at some area, it will be short lived (1-3 years max.). Take it for guarranted.CommentQuote0Flag - Originally Posted by naresh_kumarThe population of India is so huge that there cant be a situation of oversupply. Even if there is oversupply at some area, it will be short lived (1-3 years max.). Take it for guarranted.
Ditto!CommentQuote0Flag