I have been in the market for some time and have been debating whether to pull the trigger now or not. There is no way regular people can afford new homes but only a very little % of population has to go for it as there is very little supply, so it is a demand supply and holding capacity game. I get it.

Just wanted to make a list of project that have experienced a drop in price. Collected price from various threads in the forum.

- RNA Exotica - Goregaon - High Rs 14,000 (? Really) Now Rs, 9950
- DB Orchid Woods - High Rs 15500 Now Rs 11,000

- Lodha Blue Moon launching at 23K (Quoted price in area is 30-50K). - Thanks piy12b

L&T launching at 16K in Parel (Quoted price in area is 25K+) - Thanks piy12b

Secondary flats offered in Omkar Altamonte at 9.5K (Builder quoted rates were 12K) - Thanks piy12b

Any other projects?
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  • cant wait for a correction .. hope it happens though ..
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  • Originally Posted by gaurang
    cant wait for a correction .. hope it happens though ..

    Correction has already started gaining momentum even though the builders and brokers continue to be in denial mode. Buyers are coolly waiting at the sidelines for a significant fall before they choose to enter.
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  • agree correction has started especially in south mumbai.
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  • people have been talking about price corrections for over 2 years now, citing the same reasons like high inventory levels (~30 months inventory), rising prices, lack of affordability etc. etc. but in reality what has happened is that the prices have risen by anywhere between 50-60% on average!
    While I completely agree that the prices should moderate and don't justify the current levels, by how much are the prices actually expected to correct by? 10%? 15%? 20%? is there a case for a correction over 20%? if not, then is one not better off choosing the right project and investing rather than try to time the market.. with inflation levels of 10%, even a 15% correction doesn't sound as exciting..
    just my 2 cents..
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  • Correction nearing? 5 lakh homes ready for delivery this year

    5 lakh families may get possession of new homes with 4.5-5 lakh apartments to be delivered in 2013 - The Economic Times

    The housing sector is likely to get a boost as nearly five lakh homes will be ready for possession this year, the highest in a single year and double of what was delivered last year, an Economic Times report pointed out today, citing surveys by property research firms.
    The dearth of ready-to-move-in flats is what had led to speculative pricing, driving up property prices in India. Hence, the deliveries are likely to lead to a price correction in both under-construction and ready flats where a lot of new supply is concentrated.
    In a sluggish real estate market, where home sales have slowed down and private equity has dried up, the delivery of homes will not only help builders bridge the liquidity gap but also allow them to finance other new projects.
    A bulk of the new homes, the deliveries of which were delayed due to regulatory hurdles, liquidity crunch and farmer agitation, will come up in Noida, Greater Noida, Gurgaon in the NCR region (1,41,921 units) and Thane and Navi Mumbai in the Mumbai Metropolitan Region ( 1,21,992), followed by Pune (62,000), Bangalore (58,000), Chennai (51,000), Hyderabad (38,659), Ahmedabad (24,400) and Kolkata (18,248).
    “Price points are already too high in many markets, and investors who will get their apartments this year might not have any option but to offer some discounts to exit,” Pankaj Kapoor, managing director of Liases Foras, was quoted as saying in the report.
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  • Last Sunday I visited two properties

    1. Mantri Park
    2. Raheja

    Mantri park there are soem resale flats whihc have been on the market for 3-4 months now for 65L and less. Broker informed me of a recent sale for 60L (1BHK)

    Raheja is crazy and ia quting 99L (all inclusive for a 1BHK with only one common toilet bath!) How crazy is that in interior Goregoan east. FOr the half hoir I was there, I was the only person there in sales office.

    There was a flat fr resale 4-5 years old for in Raheja heights for 92L with broker saying that its on market for a long time and owner will sell for 85L

    The best part was broker warned me against buying NOW,. He said the market has really slowed down and he has only made one deal in last two months, where as he would be doing multiple deals in a month.
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  • Another builder in cash crunch?

    A Builder ( with only 10 years of existence) who is carrying out one of the most ambitious projects in Western suburbs has come out with a new prelauch

    - Project will start 2 years from NOW !!!!!!!!!!!!!!!!!!!!!!!!!

    - On Andheri Western Express highway

    - Minimum 5K area has to be purchased

    - 50% !!!!!!!!!!!!!!!!! Payment required ( no approvals , nothing)

    - Rate 8500

    - 15 % simple interest exit option

    - 2 years lockin

    I see this as a big big scam happening in the industry as a whole, not just on builder. No builder will be able to raise funds at 15% simple interest. They are doing prelauch with investors for such a long term horizon. If they are saying 2 years the project will not have ground breaking for the next five years.
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  • Originally Posted by new2RE
    A Builder ( with only 10 years of existence) who is carrying out one of the most ambitious projects in Western suburbs has come out with a new prelauch

    - Project will start 2 years from NOW !!!!!!!!!!!!!!!!!!!!!!!!!

    - On Andheri Western Express highway

    - Minimum 5K area has to be purchased

    - 50% !!!!!!!!!!!!!!!!! Payment required ( no approvals , nothing)

    - Rate 8500

    - 15 % simple interest exit option

    - 2 years lockin

    I see this as a big big scam happening in the industry as a whole, not just on builder. No builder will be able to raise funds at 15% simple interest. They are doing prelauch with investors for such a long term horizon. If they are saying 2 years the project will not have ground breaking for the next five years.

    -------

    Not really. It is like a SURVEY.

    They are conducting a survey with fictitious names. Nothing more.

    Depending on 'HOW MANY PEOPLE CONTACT', they think they assess the demand.

    It is all a scam and every one knows.

    You see in real estate portals, 'Malabar hill , 600sqft, 1 bhk 20 lacs' etc.
    Then , people like you and I call . Then they say , its 2 crores. lol. Just for example.

    Same fraud. But then nowadays every one knows it.
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  • Mumbai pretty much is out of reach to Indians.

    The pricing is close to insanity. Actually the IT dept and ED should be looking at accounts of any one purchasing properties of 1 crore and above ( without PAN cards).
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  • Very true, couple of days back one agent who works from the complex where my family lives listed a property at 40% below current value. When i called him anonymously, he mentioned that one of his (non-existent) employees made a typo and that the actual value was much higher but he can offer me a discount.

    Originally Posted by dubyaskin
    -------
    It is all a scam and every one knows.

    You see in real estate portals, 'Malabar hill , 600sqft, 1 bhk 20 lacs' etc.
    Then , people like you and I call . Then they say , its 2 crores. lol. Just for example.

    Same fraud. But then nowadays every one knows it.
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  • Few of these might actually get caught this year as our useless Chidu is now forcing IT to go after people buying high priced properties to decrease CAD.

    Originally Posted by dubyaskin
    Mumbai pretty much is out of reach to Indians.

    The pricing is close to insanity. Actually the IT dept and ED should be looking at accounts of any one purchasing properties of 1 crore and above ( without PAN cards).
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  • new2RE, why is this a scam? The same thing was offered by Bhagtani.prealauch after 9 months and construction possible after a year?

    Since there is a 2 year period for the construction to start, the rates being quoted are much lower. Same thing with lodha blue moon., rates quoted are 40% lower than existing rates?

    In worst case, you get 15% interest on your investment. I am trying to understand what is the scam.

    I know that the builder is raising cash and if he sells it at 1000 - 12000/sqft, he won't get people to invest 5000sqft for 2 years lock-in. So the rates are being lowered.
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  • The builders are in trouble due to liquidity

    - They are launching projects left and right to get cash from investors.

    - The two years time period is used just to keep queries at bay for two years.

    - If the builder does not start project for four years, the investor may leave with just 15% simple interest.

    - No one will finance builders at such low interest rate, so they are creating these schemes.

    The main problem is that this is a search for the biggest fool. One projects needs financing, pre-launch another, so on so forth but the delivery is so slow and misses dates by multiple years. When the investors catch on, they will stop financing the builders at such rates.
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  • Originally Posted by wildfire
    new2RE, why is this a scam? The same thing was offered by Bhagtani.prealauch after 9 months and construction possible after a year?

    Since there is a 2 year period for the construction to start, the rates being quoted are much lower. Same thing with lodha blue moon., rates quoted are 40% lower than existing rates?

    In worst case, you get 15% interest on your investment. I am trying to understand what is the scam.

    I know that the builder is raising cash and if he sells it at 1000 - 12000/sqft, he won't get people to invest 5000sqft for 2 years lock-in. So the rates are being lowered.


    Forget about 15%, in worst case you will lose all your money for that matter with a builder.;)
    Just why would anyone park his hard earned money with Builders (Where chances of losing all your money is much higher)
    When banks have already started offering compounded interest of 15.14% i.e. doubling your money in five years.:bab (59):
    I am sure other banks will follow soon as the liquidity crunch increases further in the market.

    Check out below link:


    The Ratnakar Bank Fixed Deposit: The Ratnakar Bank Fixed Deposit/Term Deposit Schemes, NRI/NRO/NRE Deposit Rates The Ratnakar Bank, Bank Fixed Deposits/Term Deposit in India, NRI/NRO/NRE Interest Rates

    http://www.google.com.sg/url?sa=t&rc...07cVRIw3qCfceg

    http://www.google.com.sg/url?sa=t&rct=j&q=ratnakar%20bank%20pune%20branch&source=web&cd=1&cad=rja&ved=0CDAQFjAA&url=http%3A%2F%2Fwww.theratnakarbank.com%2Flocate-branch.aspx&ei=Pj0VUdS4C4WHrAfRoYGgDA&usg=AFQjCNHvbO4MDySdGBn95LZjk6-zo5xWpg&bvm=bv.42080656,d.bmk

    PS: Anyone depositing money with Ratnakar Bank is advised to check out the bank credential first before doing so. I have never heard of this Bank and just got to know yesterday as the highest interest paying bank in India on FD’s.
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  • This all happening because of greedy investors. If we stopped approaching these kind of builders, they will never dare to launch such schemes.

    When the real estate boom started, it was because of genuine consumers, now none of the new projects are not in consumers' reach. Only investors are there in the market, they wont buy anything if they can't sell it at a good price in future.

    Currently the market is stagnant, and builders are using all their tricks and tactics to lure the investors, NRIs in the market. Just stay away from the market for 6 months from now on. Then you will really see the difference.
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