It seems prices has started falling in Mumbai, many builders have started quoting less than what is being advertised, also many flats owners have reduced their prices to sell their flats as soon as possible before the price drops more, any first hand input welcome...:D
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  • Originally Posted by REDUMMY
    It seems prices has started falling in Mumbai, many builders have started quoting less than what is being advertised, also many flats owners have reduced their prices to sell their flats as soon as possible before the price drops more, any first hand input welcome...:D

    without any first hand input, how did you come to the conclusion??
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  • Lol

    Good Question
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  • Nope not correct.. It is far too early for the builders lobby to crack and there is no big repayment schedule.. It will be more clear only post the festival season and that too if demand does not pick up...

    Originally Posted by REDUMMY
    It seems prices has started falling in Mumbai, many builders have started quoting less than what is being advertised, also many flats owners have reduced their prices to sell their flats as soon as possible before the price drops more, any first hand input welcome...:D
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  • hi

    prices quotes no doubt are ridiculous , but no drop in quoted prices.
    Any inputs on which projects are quoting lower than earlier
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  • Originally Posted by spdutt72
    prices quotes no doubt are ridiculous , but no drop in quoted prices.
    Any inputs on which projects are quoting lower than earlier

    it is only wishful thinking. No basis.
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  • This is the time to act by the realty user community. Take the following steps to accelerate the fall of realty price to reasonable level.


      Refrain from buying.
      Spread the news of impending big fall in realty price at every forum.
      This will save lot many people from bankruptcy.
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  • Originally Posted by tubaibabu
    This is the time to act by the realty user community. Take the following steps to accelerate the fall of realty price to reasonable level.


      Refrain from buying.
      Spread the news of impending big fall in realty price at every forum.

      This will save lot many people from bankruptcy.

      Before advising others make sure you know your basics. Maybe listening to your advice, many people who would have been able to get on the housing ladder would be left out forever.
      :bab (59):
      Before advising others make sure you know your basics. Maybe listening to your advice, many people who would have been able to get on the housing ladder would be left out forever.
      :bab (59):
      Before advising others make sure you know your basics. Maybe listening to your advice, many people who would have been able to get on the housing ladder would be left out forever.
      :bab (59):
      Before advising others make sure you know your basics. Maybe listening to your advice, many people who would have been able to get on the housing ladder would be left out forever.
      :bab (59):
      Before advising others make sure you know your basics. Maybe listening to your advice, many people who would have been able to get on the housing ladder would be left out forever.
      :bab (59):
      Before advising others make sure you know your basics. Maybe listening to your advice, many people who would have been able to get on the housing ladder would be left out forever.
      :bab (59):
      Before advising others make sure you know your basics. Maybe listening to your advice, many people who would have been able to get on the housing ladder would be left out forever.
      :bab (59):
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  • I think the forum here is to discuss as far as possible prices etc on the basis of concrete data like rates/ft2, availability, first-hand or reliable info etc. This is what is required so as to enable people decide on options.
    Please could posters back up their statements with data rather than just give vent to their emotions/ views?
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  • Originally Posted by garudadri
    I think the forum here is to discuss as far as possible prices etc on the basis of concrete data like rates/ft2, availability, first-hand or reliable info etc. This is what is required so as to enable people decide on options.
    Please could posters back up their statements with data rather than just give vent to their emotions/ views?

    Message for you REDUMMY!!
    If anyone has firrst hand experience of prices dropping (which will obviously be good news in this exaggerated market), please post the details.
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  • Originally Posted by jadhav_ravi
    Before advising others make sure you know your basics. Maybe listening to your advice, many people who would have been able to get on the housing ladder would be left out forever.
    :bab (59):


    Mr. Ravi, i know the basic very well and my advice has a strong basis and the basis are.
    1. The present price is absurd not in line with the purchasing power of the people.
    2. There are huge amount of debt in the book of the builders. Rs. 90,000 crs from bank only as per RBI.
    3. The debt restructuring is happened last year ( blessing from our great politician Community).
    4. There are huge debt from PE investor(FDI money). How long they can sustain given the economic situation in their home country?
    5. There are hadly any transuction from real user. In my sphear i have not come accross many people who has comitted to buy any RE in last two year. However there are lot many intended buyer and each earning a take home salary to the tune of 20 lacs and more.

    Now may i ask you, what is your basis that the price will increase further.
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  • Originally Posted by tubaibabu
    Mr. Ravi, i know the basic very well and my advice has a strong basis and the basis are.
    1. The present price is absurd not in line with the purchasing power of the people.
    You think of your purchasing power. Maybe Mumbai people are not as poor as you think or the government data show. Have a look around.
    2. There are huge amount of debt in the book of the builders. Rs. 90,000 crs from bank only as per RBI.
    All companies work on debt. Had their debt/equity ratio not been good enough, their share prices would not have jumped 100% in last 1 year. Their land banks are huge and the potential for revenue is incredible. There are millions of villagers migrating to cities every year, millions of nucear familes being created and so the demand for housing is incredible. Indian pricing is no different from Chinese, Russian, South African or Brazilian, which are all developing.
    3. The debt restructuring is happened last year ( blessing from our great politician Community).If icici, hdfc and foreign banks do debt restructuring is that because of political pressure. Are these guys crazy. Everyone including Dubai and Greece had their debt restructured after recession. It is past now. They are paying the installments in time now.
    4. There are huge debt from PE investor(FDI money). How long they can sustain given the economic situation in their home country?Whose economic situation are you talking of? Is America , Japan and Europe going to file bankruptcy. Given the low interest rates and slower growth in developed economies, more and more money is moving into developing world.
    5. There are hadly any transuction from real user. In my sphear i have not come accross many people who has comitted to buy any RE in last two year. However there are lot many intended buyer and each earning a take home salary to the tune of 20 lacs and more.Are you RBI who keeps track of people buying and selling. How big is your sphere (forget your sphear, no one s interested). Middle class people are now buying in the new suburbs (remote suburbs) (Thane, Dombivali, Kalyan, Kharghar, Virar and Panvel). Mumbai and suburbs are now exclusive to rich people.

    Now may i ask you, what is your basis that the price will increase further.
    Did I say that? Anyways if you look at the number of people in waiting, there would be no drop as the demand is just outstanding. If there is a correction it may be in central mumbai but nowhere else.

    How do you come across people in your sphear :bab (59): It must hurt dude:bab (45):

    Anyways, jokes apart, I did not draw any conclusion here. You are talking a lot of theory which may be different from the real picture.

    You should mention your basis when you advise someone else. Otherwise you may be misguiding them.
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  • Originally Posted by jadhav_ravi
    How do you come across people in your sphear :bab (59): It must hurt dude:bab (45):

    Anyways, jokes apart, I did not draw any conclusion here. You are talking a lot of theory which may be different from the real picture.

    You should mention your basis when you advise someone else. Otherwise you may be misguiding them.



    I agree with Jadah Ravi, I do not see any depreciation of property prices in Mumbai..

    it goes something like this:
    an boom of 3* "X" percent followed by a drop of X percent...
    and then a boom of I * "X" and then a drop of X...

    But, the value of "I always remains > 2 to 2.5.
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  • Originally Posted by VishalPrabhakar
    I agree with Jadah Ravi, I do not see any depreciation of property prices in Mumbai..

    it goes something like this:
    an boom of 3* "X" percent followed by a drop of X percent...
    and then a boom of I * "X" and then a drop of X...

    But, the value of "I always remains > 2 to 2.5.


    Great observation Vishal.

    As you said, the corrections are a mere gimmick. 100 Rs off for diwali :-).

    If you just take into account inflation (Salary, Raw materials, CPI), there is no way that prices can go down. In America they go down because people put 10% of their money and 90% is mortgage and then they see foreclosures and depressed sales.

    In India, thanks to NRIs and old philosophy, loans maybe make 50% of the transactions. Rest are outright purchases. Even people who take loans have 30% down payment. Indians are more prudent. They do not have a reckless lifestyle (although this is changing). In such a case there is no stimulus for deep correction.

    India is a rich nation of poor people. The wealth distribution is very skewed. So though Indian GDP may be 1/100th of USA, many people (NRIS, professionals/businessman in cities) have similar income as in USA.If you look around you will find many bank/IT/telecom/retail guys who have incomes in excess of 10L. A married couple hardly finds it difficult to pay an EMI of 50K per month. That is about 50 Lakhs for the price of flat. So where do you see correction. Given the supply, there is ample demand (atleast in Mumbai)

    What fascinates me is where do people get their money from. But it all seems to work. People are hard working and hell-bent to succeed and make money.
    - Many people earn from stock markets. FIIs put money and support these incomes.
    - Banks take 12% interest. Look at SBI/ICICI profits, they are huge. So they pay their employees good
    - Insurance was inexistant till 5 years ago. Insurance companies are making big profits so they hand out huge money to their employees
    - Airlines, they have good business. They pay excessive salaries.
    - Businessman - Give the population of Mumbai even a good vada paav shop rakes in a turnover of 15-20K a day. So he has an income of 5K a day or 1.5L a month.
    - Same with retail, telecom and ....
    So who is poor: the rickshawman, the manual labourers, maids,... who live in slums.

    It may all seem bad, dirty and miserable on CNN, BBC and Slumdog Millionaire but the ground reality is that many Mumbaikars do have the capacity to buy a flat of 1C while NRIs stare at the outskirts to get a roof and then sing about: NPAs/bad debt/GDP/GNI/debt-restructuring/per-capita/roads/slums and compare prices with manhattan.
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  • Prices are unlikely to go down as

    1. There is expectation among M'bai ppl that prices are going to go upwards all the time. This is the most important factor..If ppl are confident that prices wont go up much and may come down..many ppl would not be buying houses at all..

    2. Price correction can only happen if there is distress ..(maybe due to stock market going below 2500 for a year or two/ some 2-300k jobs lost in M'bai...that kind of situation which has never happened since 1996). This can happen due to political instability also..but you still have to wait till 2014 for it.. Key factor driving the mania is FDI which has gone up from nearly 0 to 14K crore in last 5 year..Builder use this money..get 5 times loan(70k karod) from Bank..so effectively you have investment of 100k karod which is going to make house expensive.


    3. Real estate bubble take a long time to puncture..min 10-20 yrs. In this case there would be not Govt action for this too as This is not translating in wage inflation /high goods prices in Mumbai since the wages are low due to slums..which reduces labor cost for Mumbai...

    So, if one does not have money...just survive somehow..by paying rising rents every year(Next year rent would go up by 30 percent effectively) as HRA tax rebate is being removed but Govt is going to be subsidising home buyers by giving rebate .
    Good option if you can get out of Mumbai is to move to cheaper cities or smaller towns where one can still live..

    Even for rich person...mehengai daayan khaave jaat hain
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  • Originally Posted by mamba
    Prices are unlikely to go down as

    1. There is expectation among M'bai ppl that prices are going to go upwards all the time. This is the most important factor..If ppl are confident that prices wont go up much and may come down..many ppl would not be buying houses at all..

    2. Price correction can only happen if there is distress ..(maybe due to stock market going below 2500 for a year or two/ some 2-300k jobs lost in M'bai...that kind of situation which has never happened since 1996). This can happen due to political instability also..but you still have to wait till 2014 for it.. Key factor driving the mania is FDI which has gone up from nearly 0 to 14K crore in last 5 year..Builder use this money..get 5 times loan(70k karod) from Bank..so effectively you have investment of 100k karod which is going to make house expensive.


    3. Real estate bubble take a long time to puncture..min 10-20 yrs. In this case there would be not Govt action for this too as This is not translating in wage inflation /high goods prices in Mumbai since the wages are low due to slums..which reduces labor cost for Mumbai...

    So, if one does not have money...just survive somehow..by paying rising rents every year(Next year rent would go up by 30 percent effectively) as HRA tax rebate is being removed but Govt is going to be subsidising home buyers by giving rebate .
    Good option if you can get out of Mumbai is to move to cheaper cities or smaller towns where one can still live..

    Even for rich person...mehengai daayan khaave jaat hain


    Living in Mumbai involves "survival of the fittest". The ones who cannot compete, move to Pune and Bangalore. It is cut-throat competition and it has always been so.
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