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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  • Property prices in India’s financial capital Mumbai have surged 40 percent in less than two years, even surpassing peaks reached in 2008. Homes in Mumbai's prime locations, for example, can cost up to $2,000 a square feet.

    But warning signs have emerged to suggest that a correction might be around the corner. Real estate firm Jones Lang LaSalle told CNBC that prices could fall 10-15 percent by the year-end.
    According to industry experts, home registrations are down 30-35 percent in Mumbai compared with the previous year, which shows that investors and homebuyers have moved to the sidelines.
    “Rapid rise in property rates in Mumbaihave acted as a dampener for residential demand in the city, primarily in the premium and mid-high income segment,” Jones Lang La Salle said in a report.
    The recent slowdown in activity in the residential space is hurting both property developers and home sellers.
    “I have a 2-bedroom apartment in central Mumbai, it’s a very nice building with a garden and a gym. I put it on the market 3 months ago and haven’t received a single inquiry,” Rajesh Jogani, a Mumbai-based real estate investor, told CNBC.
    The bad news for investors is that transaction volumes are unlikely to recover in the coming months, according to Shobhit Agarwal, Managing Director, Capital Markets at Jones Lang LaSalle because of the lack of affordable housing and rising lending rates.
    India's central bank has been one of the most aggressive in Asia in tightening monetary policy, raising interest rates nine times since March 2010, and analysts expect more rate hikes to come, despite a slowdown in the economy. Gross domestic product (GDP) grew just 7.8 percent in the January to March quarter, the slowest pace in over a year, and lower than the 8.2 percent forecast in a Reuters poll.
    “Mortgage rates have gone up from around 8.5%-9.5% two years ago, to 11.5% now,” said Ramesh Jogani, Managing Director and Chief Executive of Indiareit, a real estate private equity firm, which manages funds worth $890 million in domestic and offshore markets.
    As a result, mortgages that once took homebuyers fifteen years to pay back are now taking over twenty years to service.
    Jones Lang LaSalle’s Agarwal says the wide disconnect between the expectations of buyers and sellers are also contributing to a drop in activity in the market.


    “Homebuyers are anticipating a fall so they aren’t buying, developers are holding onto their properties because they believe demand will return. It’s a wait and watch situation,” Agarwal said.
    “This year, sales during the festival season won’t pick up,” he added. The festival season, which takes place from mid-September to the end of November, has historically seen a surge in property purchases especially on the residential front.
    In addition to poor demand, industry experts believe there is also an oversupply in the market. Over 65,000 new residential units were launched across India during the first three months of the year.
    Agarwal says it is just a matter of time before property developers begin to slash their prices, particularly as new projects are not getting the same sort of response seen in 2010.
    Jogani of Indiareit agrees and adds, “Property developers are taking debt at rates of 18 to 24 percent per annum, which will put further stress on their books and lead them to reduce prices.”
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  • Orchard residency, Runwal

    Originally Posted by ankilsanghvi
    I, 25 days back had visited Runwal orchad project at Ghatkopar. The price I was told was 11500 + floor rise. Since past 2 days I 'm gettin calls from builder's office and are offering me at 10k all inclusive. Though its not much a lucrative project to jump in but the big runwal group seems desperate.


    Hi,
    I had been to their office too about two months back when the quoted price was 10,500 /- + F.R . About two weeks back I got a call from their office offering a limited period discount offer of 9,100/- + FR. I went back to their office only to find out that the 2BHK flat which earlier had a saleable area of 1050 sq.ft had somehow miraculously jumped to 1290 sq.ft. In effect the total price of the same flat had increased further.

    Pls do not fall prey to such silly tactics being employed by the builder. The end game is near. Its just a matter of who blinks first. :)
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  • Originally Posted by ankilsanghvi
    Climbed 'p on Wadhwa today. Was Shocked to see that crematory was easily visible from all the flats. Should they build 50 ft. high wall as they claim, which to me is an impossible task to get legal permission, then too it will be visible from higher floors after 7th or 8th. I met some brokers in Ghatkopar, they told me that outright sale market has completely dried'p & they r now totally dependent on rent market as all the buyers are planning on wait & watch policy.

    I too went to the 4th floor of Boulevard 4 in Wadhwa and could not see the crematory. Not sure from which floor you saw it.
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  • Originally Posted by amitshah
    Hi

    Even if they built 100 foot wall. The floor which can see that would discuss about cremation in the building. So the atmosphere would be the same throughout the building. I am sure Wadhawa is one of the smartest builders, they would have thought about this?

    Amit


    Should there been something to be done, Presedential tower residents or Kalpataru would have already done something abt it. There is nothing that can be done about it, moreover Muslim ppl also have religious rules about the direction of sunlight falling on it & all.I asked my muslim friend. so huge wall around it might also be an impossible thing. He has got a home facing it & says that it is an unpleasant sight. They also don't allow the cremetory to be covered by roofs.
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  • Originally Posted by ankilsanghvi
    Should there been something to be done, Presedential tower residents or Kalpataru would have already done something abt it. There is nothing that can be done about it, moreover Muslim ppl also have religious rules about the direction of sunlight falling on it & all.I asked my muslim friend. so huge wall around it might also be an impossible thing. He has got a home facing it & says that it is an unpleasant sight. They also don't allow the cremetory to be covered by roofs.


    Who said that! There is no such rule.
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  • Originally Posted by gainvidya
    Who said that! There is no such rule.

    One of my Muslim friend who stays in that area
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  • Yet another article, but nothing visible on ground!

    Prices of new homes in Mumbai likely to come down: Analysts
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  • these articles portray myths reality is totally different
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  • I am halting my current plans for the buyout & moving on to lease flat at Kalpataru Aura. I visited the sales office generally & price quoted by them has come down to 9250 from 10500 for new phase, though loading has increased 18% but its good omen that points on price reduction.
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  • Originally Posted by ummed rao
    this is right that the price of real estate is decreasing and Lodha Bellissimo are the better option for purchasing the flat in Mumbai.

    Lodha Bellissimo
    Mumbai call +91 98200-31942 for Lodha Bellissimo Mahalaxmi Mumbai. Lodha Be"Lodha Bellissimo Mahalaxmi Mumbai | Lodha Bellissimo Mumbai"llissimo located off N.M. Joshi Marg Mahalaxmi in Mumbai


    FCUKING ADVERTISER
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  • Well known reasoning in this article of the realty prices surging inspite of corrosion of Mkt Cap for the big names in the Real Estate Industry in India.

    How the real estate sector destroyed Rs 2,66,000 crore | Firstpost
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  • Hello guys,

    As mentioned to some of you, I went forward and booked my flat at Rajendranagar, Borivali (E). "B"Class builder, 7567/- p. sqft, 925 Super Built, 576 Carpet, 640 Carpet including Flower beds, 5th floor (13 floor building). Parking and other govt. charges extra (5 lakh + VAT +Service tax). Current state :- first floor slab in progress.

    I'm not sure if I took the right decision (considering this is an investment for me and so called "price correction" is on the way soon!) but just got bored of discussions and wanted to live life..! Lets see how much I can make out of it in 3 yrs..I will keep you posted.
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  • Originally Posted by Newcomer
    Hello guys,

    As mentioned to some of you, I went forward and booked my flat at Rajendranagar, Borivali (E). "B"Class builder, 7567/- p. sqft, 925 Super Built, 576 Carpet, 640 Carpet including Flower beds, 5th floor (13 floor building). Parking and other govt. charges extra (5 lakh + VAT +Service tax). Current state :- first floor slab in progress.

    I'm not sure if I took the right decision (considering this is an investment for me and so called "price correction" is on the way soon!) but just got bored of discussions and wanted to live life..! Lets see how much I can make out of it in 3 yrs..I will keep you posted.


    Congrats on your investment, it will be in +ve after 3 years. Till we have people who have lots of money and who just invest because they are feeling bored there can never be any correction in India. :)
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  • Originally Posted by UncleScrooge
    Congrats on your investment, it will be in +ve after 3 years. Till we have people who have lots of money and who just invest because they are feeling bored there can never be any correction in India. :)


    Well, I dont have lots of money (buying this out of Bank money) but just wanted to finish this thing without spending more time. Problem is, we never count how much time we spend discussing same things over and over and ruining lots of evenings & weekends which can be well spent with your family and friends..analysis is good but I dont want to be an Economist...Maybe I'll gain less but thats good enough for me.
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  • Originally Posted by Newcomer
    Well, I dont have lots of money (buying this out of Bank money) but just wanted to finish this thing without spending more time. Problem is, we never count how much time we spend discussing same things over and over and ruining lots of evenings & weekends which can be well spent with your family and friends..analysis is good but I dont want to be an Economist...Maybe I'll gain less but thats good enough for me.

    Good Point!
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