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Mumbai Residential Market Prices Crash 91 in 1 Year

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Mumbai Residential Market Prices Crash 91 in 1 Year

Last updated: October 20 2013
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  • Mumbai Residential Market Prices Crash 91 in 1 Year

    Mumbai residential mkt prices crash 9.1% in 1 year
    =====================================

    For first time since 2008, Mumbai residential prices fall - PTI -
    Well I still do not see any fall in Mumbai.
    Contrary to the article posted I find the prices have increased by 20% in Mumbai Suburbs.
    The article is highly misleading.
    The builder lobby supported by politicians have so far managed to keep the prices artificially up, in spite of no genuine buyers in the market and no actual transactions taking place in the market (Vicious nexus). Standard rate quoted by brokers in Andheri West are 1 BHK - 1 Crore, 2BHK - 2 Crores, 3BHK - 3 crores.
    I doubt there will be any buyers coming forward to buy at this rate.
    These prices should be at least 40% less than quoted for real end user to dare come forward and enquire.
    There are no genuine buyers in present market capable of paying EMI of > 1L~3L.
    Let us wait and watch for this bubble to burst big time in coming months.
    Forum members are welcome to share their experiences.
  • #2

    #2

    Re : Mumbai Residential Market Prices Crash 91 in 1 Year

    Agree with you Capt Rajesh - Andheri West prices are crazy as several investor's have invested at 7k or 8k psf and now want to exit at 12k to 15K - higher the better.

    Genuine buyers shud prolong the purchase for another 12-14 months and see how long can developers and investors hold the inventory.

    If ppl refuse to buy at crazy prices then the RE bubble will have to burst.

    Comment

    • #3

      #3

      Re : Mumbai Residential Market Prices Crash 91 in 1 Year

      Millions of family in mumbai dont have their own house and would want to have one.
      To buy a flat a person has to upfront 20 pc of the price, so if a buyer in wait saves 5 lakhs in a year, he can afford to buy the house even if prices rise by 25 lakhs.
      The wages for employed person rise by an average 10-15pc an year, and given that his living costs increase by only 4-5pc per year, his EMI servicing capability rises by atleast 15-20pc per year or more. Multiply for double income families.
      Every reader should try to think what he could have afforded three years ago, and what he can afford now, he will find that his affordability may possibly have increased by same rate as property prices or possibly more.
      This is the true picture of demand. It is humongous. The pecking order is families with high savings, high income, average but double income, dollar income etc.. These are clean demand, then of course there is black.

      Now compare supply. Isnt there a genuine shortage of land,labour and laws, the three essentials for real estate supply to be regular?

      Guys, the true reason why you dont wanna buy a house is that you dont want to take that loan which banks are happy to give you? Not appreciating the fact that really its the bank who is taking the risk of a real estate crash. We indians are debt averse and therefore live in less than optimal life.

      And guys dont casually pray for Indian bubble to burst. It will have casualties and believe me its the lower/middle stratum which suffers most, always. Simply put, you and me will not have a job or the confidence to afford the 40 pc cheaper house, if a recession looms

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      • #4

        #4

        Re : Mumbai Residential Market Prices Crash 91 in 1 Year

        misleading

        The title of the article on TOI and economic times is misleading. The article talks about 9% negative growth which does not mean the property price dropped 9%, it just means compared to previous year prices increased 9% less. Overall RE prices have gone up.

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        • #5

          #5

          Re : Mumbai Residential Market Prices Crash 91 in 1 Year

          at my moms building, the neigbor was trying to sell the flat for 60 laks since 3 months now she is saying even it goes for 50-55 she will sell it but still no takers...

          Good luck to all

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          • #6

            #6

            Re : Mumbai Residential Market Prices Crash 91 in 1 Year

            Originally posted by ajayanari View Post
            at my moms building, the neigbor was trying to sell the flat for 60 laks since 3 months now she is saying even it goes for 50-55 she will sell it but still no takers...

            Good luck to all
            . 50 lacs is lot of money bhai.

            It is the salary of an IAS officer for 15years. at prevailing salary structure. That guy approves your ration card and your identification as a citizen of this country.

            50 lacs is the PM salary for 5 years. lol.

            The RE thugs made crores look like dimes. Raja is on bail so lets see.

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            • #7

              #7

              Re : Mumbai Residential Market Prices Crash 91 in 1 Year

              There is always a demand for Mumbai RE. Last I heard that "no one" is buying.

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              • #8

                #8

                Re : Mumbai Residential Market Prices Crash 91 in 1 Year

                If the bubble bursts.. I wonder what those people will do whose value of the property will go below the amount of the loan they have to pay to the bank....

                Same thing happened in USA, is happening in CHINA and India cannot escape from it.

                Good night lol

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                • #9

                  #9

                  Re : Mumbai Residential Market Prices Crash 91 in 1 Year

                  Originally posted by Oracle View Post
                  There is always a demand for Mumbai RE. Last I heard that "no one" is buying.
                  There is demand and always will be a demand. But not at these ridiculous prices...
                  No one is buying means--
                  No one is interested in buying at these prices...
                  No one has that kind of money to buy...
                  No one gives a damn anymore...
                  No one but the last remaining investors who did not exit on time are creating a big hue and cry explaining the rationale behind existing prices...

                  Comment

                  • #10

                    #10

                    Re : Mumbai Residential Market Prices Crash 91 in 1 Year

                    Originally posted by ajayanari View Post
                    If the bubble bursts.. I wonder what those people will do whose value of the property will go below the amount of the loan they have to pay to the bank....

                    Same thing happened in USA, is happening in CHINA and India cannot escape from it.

                    Good night lol
                    In US, they gave upto 99pc LTV loans to people who had no income,no jobs and no assets. These borrowers walked away when prices stopped going up, pulling prices further down. Indian banks, where we keep our precious savings ( because of the damn bubble in equities,real estate and gold), are thankfully bit more careful than their US counterparts. And yes to your point of property value falling below the loan amount, the people who'd suffer will most likely be depositors who were doing FDs and stuff. I again suggest people to not wish for RE crash casually. Get real guys, the interest that you earn on your bank deposits doesnt emerge from thin air. Its earned by taking risks, if not you then your bank will take.

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