Nearly 2 months to go. What could be the possible outcome of the Commonwealth Games on Indian Real Estate?
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  • I don't think if CWG does not take place it should have any effect on the real estate sector.

    Whatever planned infrastructure spending (minus commission under corruption) has already been spent or nearing completion for spending.

    I don't think if few atheletes do not run or few medals are not given away it should have any effect on the real estate sector, by real estate I mean houses/residences where people stay (or have to stay in future)

    Yes, if CWG does not happen the hotels/travel industry might suffer a bit, but I guess anyways not many foreigners visit except the contigents representing different countries.
    This might have a slight/minute impact on the economy as a whole but that should not be affecting the real estate sector at all.

    OR even if the games happen (by the way I think that the games will happen and should happen) it will not affect much now since all the development that had to happen under it's name is already underway.
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  • Originally Posted by smart_invest
    I don't think if CWG does not take place it should have any effect on the real estate sector.

    Whatever planned infrastructure spending (minus commission under corruption) has already been spent or nearing completion for spending.

    I don't think if few atheletes do not run or few medals are not given away it should have any effect on the real estate sector, by real estate I mean houses/residences where people stay (or have to stay in future)

    Yes, if CWG does not happen the hotels/travel industry might suffer a bit, but I guess anyways not many foreigners visit except the contigents representing different countries.
    This might have a slight/minute impact on the economy as a whole but that should not be affecting the real estate sector at all.

    OR even if the games happen (by the way I think that the games will happen and should happen) it will not affect much now since all the development that had to happen under it's name is already underway.


    I agree. CWG has only one impact on NCR Real estate when governement track down all flat/property sold in NCR and find out it's actual buyer by verifiying PAN card and other detail.
    That's not possible so it won't have any impact on RE. Delhi real estate anyway will not have any impact whatever be the output of game/world recession.

    NOIDA is already down due to over supply.
    Faridabad chepaer than Lucknow RE.
    Greator NOIDA also struggling.
    Ghaziabad down as NOIDA down.

    Only Gurgaon RE left which is going up and reached at level which anyway may correct 5-10%. So in Gurgaon which property was 1800 in Feb 2009 reached 3000-3500. So broker/builder/investor will reduce price to 2900-3000 and will say "Oh..correction of 15-20% from top...buy buy buy.."

    Poor end user will fall in trap and will end up buying at 3000 thinking he got cheap at 3000 becasue it was 3500. But actually he given profit of 1200 to broker/short term investor.
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  • Venky why u voted for this option

    "No Games = Drastic Fall in Prices"
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  • I don't think it will come to that. too much money is involved, to held no games at all. but more idiotic things have happened in India, so can't be 100 % sure. So why do you think games will not be held at all.
    Originally Posted by nibha
    "No Games = Drastic Fall in Prices"
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  • I didn't think , I asked the same question to Venkytalks
    Originally Posted by alokgarg
    I don't think it will come to that. too much money is involved, to held no games at all. but more idiotic things have happened in India, so can't be 100 % sure. So why do you think games will not be held at all.
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  • Originally Posted by nibha
    "No Games = Drastic Fall in Prices"


    This was for sure since no games = crisis of confidence in India by FDI (India already expensive with trailing PE of 22) = dollar pull out = stocks crash = RE crash.

    This might still happen even if CWG is a success CWG - hence cause for caution now in stocks and RE.

    Please realise that RE price escalation in Gurgaon and Mumbai was because of people doubling and trippling their money in stock market in 2009.

    Stocks crashing cannot be tolerated by RE market
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  • Originally Posted by abhi
    Nearly 2 months to go. What could be the possible outcome of the Commonwealth Games on Indian Real Estate?


    Pretty sure about one thing...once CWG are over, plenty of construction workers, equipments and contractors will be free.

    Construction of new housing projects will pick up then, i guess.
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  • Well hats a very good point. haven't thought about it like that. so there might be a silver lining after all :)
    Originally Posted by Basant
    Pretty sure about one thing...once CWG are over, plenty of construction workers, equipments and contractors will be free.

    Construction of new housing projects will pick up then, i guess.
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  • Real Estate Price Crash

    The price will not fall. Reasons:
    A. Black money is twice the size of Indian economy.

    B. Politician + Developer hand in glove.
    Politician get big money from Developer and invest again with them. Thus, politician will always save developer the way they have always saved them.

    C. RBI and banks are greatly influenced by above stated nexus.
    People did not notice, that last year when developers were facing double market and debt heat, RBI came as their rescuer by changing NPA norms for real estate sector and RBI data shows a 41% increase debt funding to Developer during this tough time when loan to other industries only grew by 14%.

    D. Government finds it good to sale / lease the land parcel at astronomical prices to the developers (another medium of circular bribe nexus) when it can easily ask the developers to come and just construct the project.

    E. Release of land and FSI, increases the supply of real estate which can bring down the real estate prices. The process is influenced and controlled which does not allows the prices to come down.

    There are other N number of reasons.

    Which if some one wants to know will be explained further.

    Regards
    Nitin Parashar
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  • Originally Posted by nitinparashar
    The price will not fall.

    I agree

    Reasons:
    A. Black money is twice the size of Indian economy.
    Not true

    B. Politician + Developer hand in glove.
    Politician get big money from Developer and invest again with them. Thus, politician will always save developer the way they have always saved them.
    True

    C. RBI and banks are greatly influenced by above stated nexus.
    People did not notice, that last year when developers were facing double market and debt heat, RBI came as their rescuer by changing NPA norms for real estate sector and RBI data shows a 41% increase debt funding to Developer during this tough time when loan to other industries only grew by 14%.
    Not true. We have the best central bank in the world. Weight of RE risk was actually raised in 2006 much ahead of the bubble. Some amount of quantitative easing was needed in the crisis to prevent bankruptcy and default by builders. Now again the commercial RE risk has been increased for banks.

    Cant get a better regulator than this - which is why finance ministry is unhappy with RBI :bab (59):

    D. Government finds it good to sale / lease the land parcel at astronomical prices to the developers (another medium of circular bribe nexus) when it can easily ask the developers to come and just construct the project.

    True

    E. Release of land and FSI, increases the supply of real estate which can bring down the real estate prices. The process is influenced and controlled which does not allows the prices to come down.

    True

    There are other N number of reasons.

    Again true :-)

    Which if some one wants to know will be explained further.

    Please do

    Regards
    Nitin Parashar


    Would like to hear more of your thoughts, Nitin
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  • Hate to comment on CW in writing.... ;-) even I do criticize the work every single day of my life.

    My take would be :

    Successful games - but poorly managed and overly spent.
    Effect on real estate - positive both in terms of future investments and completion of projects held up due to Commonwealth activities in NCR.

    From buyers point of view - I expect some regulations from the government for a better control and transparency in real estate.
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  • 24 Hrs to go. Am hoping we have normal games.
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  • the games will be no doubt be sucessful beyond our imagination. actually our imagination was hijacked by all negativities of our hyper media(a la peepli live).it will be a good show and definetely the credit should go to all those unnamed unknown faces who r slogging it out for night n day to make it a grand event.the officials higher up almost made it a non event. thankfully it seems india will shine. i am trying for the opening ceremony 2morrow. in any case i have bought tickets of events that being held in stadium closest to my residence. i have heard from sources the venues r world class. it will a good exposure to our kids. also heard from the sources the ticket sale is slow. come on people leave RE for a little while and be sporty for a change..after RE and all sab maya hai. do ur bit for the country.:)
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  • Originally Posted by sab_maya_hai
    the games will be no doubt be sucessful beyond our imagination. actually our imagination was hijacked by all negativities of our hyper media(a la peepli live).it will be a good show and definetely the credit should go to all those unnamed unknown faces who r slogging it out for night n day to make it a grand event.the officials higher up almost made it a non event. thankfully it seems india will shine. i am trying for the opening ceremony 2morrow. in any case i have bought tickets of events that being held in stadium closest to my residence. i have heard from sources the venues r world class. it will a good exposure to our kids. also heard from the sources the ticket sale is slow. come on people leave RE for a little while and be sporty for a change..after RE and all sab maya hai. do ur bit for the country.:)

    I am going for CWG... Our organization has booked tickets for all interested employees... two events.. 1. India v/s Pakistan (Hockey) 2. Badminton.

    During RE discussions... don' forget the nation...

    Cheers..
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  • Kudos to all those who will go to watch the games. I too am going to take my young children to watch CWG.
    Jai ho
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