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Mumbai Real Estate Prices Started Falling

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Mumbai Real Estate Prices Started Falling

Last updated: April 4 2021
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  • Re : Mumbai Real Estate Prices Started Falling

    Originally posted by buyerserious View Post
    There is a mention in a separate thread (Vasant Oasis) in this forum that one tower was sold out in that project in one day.
    If the towers are getting sold out in one day, does that means that we still have a good number of these so called "Investors" (read: politicians, underworld goons, businessmen with a lot of blackmoney, etc) in the market. If yes all the talk about Mumbai RE correcting doesnt look to be happening in the near future as these "Investors" obviously have a lot of money surplus which is being invested in even the latest projects and then the builder reselling it for them. The builder is probably holding very little financial liability, atleast thats what it looks on the surface.
    Will be glad if the forum members can share their views on this.
    These are oldest techniques used by builders...
    Only one flat left..
    Sab sold to investors ..buy there
    Subtract 33% from saleable area for carpet area..
    legal docs only after cash..
    transfer cost on resale if society not formed

    Ultimately the builders greed kills him as he over-leverages himself by putting money on land..or other businesses...
    This Money has a mind of its own ....so builder retains of lot of flats..and is invested in many places..for him cash flow is necassary(In White as he cannot use black for many transactions) and he gets this only from Banks or from future buyers..

    Interest rates have gone up by 2% in past two years increasers builders interest payments by around 15-20%.. In addition..land prices are also shooting up..

    As a value investor and blogger Katsenelsons says..
    ' As long as there is an incremental buyer, prices keep going up, but at some point everybody who wants to buy a house has bought a house, so when an incremental buyer is not there, the prices start declining and then it becomes self-feeding. It's very difficult to time the end, but there is always an end.' repeat always an end

    Comment


    • Re : Mumbai Real Estate Prices Started Falling

      Originally posted by mamba View Post
      These are oldest techniques used by builders...
      Only one flat left..
      Sab sold to investors ..buy there
      Subtract 33% from saleable area for carpet area..
      legal docs only after cash..
      transfer cost on resale if society not formed

      Ultimately the builders greed kills him as he over-leverages himself by putting money on land..or other businesses...
      This Money has a mind of its own ....so builder retains of lot of flats..and is invested in many places..for him cash flow is necassary(In White as he cannot use black for many transactions) and he gets this only from Banks or from future buyers..

      Interest rates have gone up by 2% in past two years increasers builders interest payments by around 15-20%.. In addition..land prices are also shooting up..

      As a value investor and blogger Katsenelsons says..
      ' As long as there is an incremental buyer, prices keep going up, but at some point everybody who wants to buy a house has bought a house, so when an incremental buyer is not there, the prices start declining and then it becomes self-feeding. It's very difficult to time the end, but there is always an end.' repeat always an end
      Looks like there will be an end to us before there is an end to this mania.
      on Sunday HT reported that 90 lakhs people live in slums in Mumbai of the 1.43 crore people in total.
      Of these 90L how many will be moving up the ladder, so expect no let up.

      Comment


      • Re : Mumbai Real Estate Prices Started Falling

        Demand for apartment hardly comes from the slum people...
        Currently they earn 15-20k / month.... which too is risky pay since its typically lumpy as mostly they are in small businesses. In addition, no one is targetting thme other than houses in virar ..or further than that..or MHADA
        Some people would have lottery ticket growth but hardly contribute to demand..You can just see ..in one's present society (if it is not SRA or redevelopment) how many ppl have upgraded from slums..

        To buy a apartment in Mumbai ..salary needs to be at least 120k/month after tax...

        In Mumbai you can only afford a house when your net annual salary (post taxes) in petis is more than your age..For e.g for a person of 30 ..his slary should be at least 30L now...

        Comment


        • Re : Mumbai Real Estate Prices Started Falling

          There will always remain a demand for houses from 20L to 75L.. for salaried people, When it gets beyond a crore.. then demand becomes sparse for this segment which I believe is 60- 70% of the market..
          Stock brokers and film personalities have a bigger budget ..
          Even if a person improves his standard.. it is a difficult transition from a slum to house.. If I own a 1 BHK and want to upgrade to a 2 BHK.. in the current scenario, it is almost impossible unless I sell my 1 BHK.. even though my salary has risen..
          I do not see a great demand in the premium segment.. there is always a irrationality that creeps in and people start believing it will continue to increase. .. but stagnation has already set in.. and only time will tell whether these projects looks great or remain an eye sore as incomplete projects..

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          • Re : Mumbai Real Estate Prices Started Falling

            Look at the state of the top two threads that got maximum views in this site.

            CASA.... Dombivili and India bulls Panvel. Reading out the threads make us feel that all of them who invested are totally in the dark and they are on the mercy of the builders. If it happens, happens kind of optimism....

            Comment


            • Re : Mumbai Real Estate Prices Started Falling

              Damn - Wait 3 more months to see if prices really fall!

              I visited the MCHI Exhibition today. Surprise, shock and Apathy, I am confused between these feelings.

              Surprise and Shock to see the prices of advertised projects; All start at minimum Rs. 1.2 Cr and going up to Rs. 5-6 Cr.

              All the advertised projects (apart from a very small minority) were either going to be finished in end of Dec 2012 or end of 2013 or mid 2014 completion. The quoted prices were between Rs. 9000 - 27000 psf which basically means prices starting at Rs. 1.2 Cr for a 2BHK.

              Apathy: Clearly these future properties advertised at MCHI exhibition showed that the developers are in a desperate fund raising situation.

              I think the hope here is that people (investors + people with some fixed cash) will book properties in anticipation going by current prices in the hope that the prices will further go up in future. The developers will use this money to complete projects + repay loans. And the entire cycle of HIGH property prices can sustain.

              I am sure some people will get sucked into this vicious circle and many will be disappointed and many will continue to do the wait and watch game. It's sad and pathetic to see that the city (because of greed of developers) and many more factors will continue to disappoint the salaried class of people to sulk their entire life into repaying large loans that they will take to buy such properties. Damn, Wait 3 more months to see if prices really fall!

              My personal overall take: Wait and watch!

              Comment


              • Re : Mumbai Real Estate Prices Started Falling

                So was it crowded!!! I never expected anything else so not surprised. Want to understand the real scene before reading news of record foot falls and record sale bull...

                Originally posted by mark_ninja View Post
                I visited the MCHI Exhibition today. Surprise, shock and Apathy, I am confused between these feelings.

                Surprise and Shock to see the prices of advertised projects; All start at minimum Rs. 1.2 Cr and going up to Rs. 5-6 Cr.

                All the advertised projects (apart from a very small minority) were either going to be finished in end of Dec 2012 or end of 2013 or mid 2014 completion. The quoted prices were between Rs. 9000 - 27000 psf which basically means prices starting at Rs. 1.2 Cr for a 2BHK.

                Apathy: Clearly these future properties advertised at MCHI exhibition showed that the developers are in a desperate fund raising situation.

                I think the hope here is that people (investors + people with some fixed cash) will book properties in anticipation going by current prices in the hope that the prices will further go up in future. The developers will use this money to complete projects + repay loans. And the entire cycle of HIGH property prices can sustain.

                I am sure some people will get sucked into this vicious circle and many will be disappointed and many will continue to do the wait and watch game. It's sad and pathetic to see that the city (because of greed of developers) and many more factors will continue to disappoint the salaried class of people to sulk their entire life into repaying large loans that they will take to buy such properties. Damn, Wait 3 more months to see if prices really fall!

                My personal overall take: Wait and watch!

                Comment


                • Re : Mumbai Real Estate Prices Started Falling

                  I thought with current so called price correction, I would hope to see some realistic prices in the advertisements. more in the range of 65-1 crore, as thats what is 'affordable' budget to the ''janta''

                  not a drastic lowering of prices so far, the only thing i have seen is the Builders are offering some discounts here and there like car park etc. other than that there is not much relief!
                  adverts are all 1.7cr+ to 2.1 cr starting onwards
                  Last edited April 18 2011, 02:52 PM.

                  Comment


                  • Re : Mumbai Real Estate Prices Started Falling

                    It was not crowded. Much lesser participants as compared to last time. I attended the last one too.

                    I was surprised because the quoted prices were higher than the last time, even when all media is telling that the prices have come down. Infact, the quoted prices have gone up by an average 10%.


                    This report is compiled by Edelweiss Research. Source: http://www.edelweiss.in/Research/res...aspx?rid=17624

                    Basically developers are raising funds and trying to squeeze out the last bit of investors/aam aadmi to buy at the present prices.

                    The news in the Financial Circle is to wait till August - October 2011 time frame when you will see a real downward trend in pricing.

                    Originally posted by Sharpj View Post
                    So was it crowded!!! I never expected anything else so not surprised. Want to understand the real scene before reading news of record foot falls and record sale bull...
                    Last edited May 7 2015, 12:17 PM. Reason: Redirecting Traffic to other forum

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                    • Re : Mumbai Real Estate Prices Started Falling

                      thanks ninja

                      [QUOTE=mark_ninja;178688] Infact, the quoted prices have gone up by an average 10%.
                      Last edited May 7 2015, 12:17 PM. Reason: Redirecting Traffic to other forum

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