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Real Estate India Bubble - Is not going to burst now!

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Real Estate India Bubble - Is not going to burst now!

Last updated: October 6 2015
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  • Real Estate India Bubble - Is not going to burst now!

    We all are aware of projects which are going on and which are coming fresh in so called new gurgaon in sector 8X and 9X with price band as high as 4000-5000/sqft. Nothing is available under 50 Lacs. I visited the area again today after 6 months but still the same story, some tents of brokers then a patch of very good road and then dust dust and dust... some building been constructed and in-between those building there are agriculture land of wheat etc and some very poor looking villages.

    I bet you that area is not gonna be livable for next 5 years. Condition today is that if you need water to drink you will not find it in our new gurgaon, its like a land of bricks and no human being and we are talking abt living there soon.
    I dont understand why we all are so desparate to buy the flats at such a high cost and also on other hand we are talking continuosly about bubble is going to burst. But thing is who is gonna bust the bubble?, I dont think any pin/needle can actually now burst this bubble which with help of us only is becoming bigger and thicker with every passing hour and has covered almost whole Gurgaon.

    We have to think about it, its not just buy at 2600/sqft and then sell at 3000/ sqft and then buy something else at 2900/sqft and sell at 3300/sqft. This is just benefiting the builders only and they know now how to make money in this crazy gurgaon crowd. We are just over-pricising everything and moving the house of end user beyond his reach.


    Thanks!
    Last edited September 5 2013, 09:28 AM.
  • #2

    #2

    Re : Real Estate India Bubble - Is not going to burst now!

    nothing is going to burst. it is just a talk. property values never really went down. in 2009, they went little bit down but in 2010 onward kept rising and now they are not affordable by an average man.

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    • #3

      #3

      Re : Real Estate India Bubble - Is not going to burst now!

      Fully agree

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      • #4

        #4

        Re : Real Estate India Bubble - Is not going to burst now!

        i just copied from the another thread....
        Status of big real estate is this true.........
        HI GUYS HAVE A LOOK AT THIS



        More on the veritas report: Can someone arrange this report guys?

        Extracted from http://www.yourmoneysite.com/news/20...per-share.html

        Debt concerns plague DLF. The stock has slumped nearly 4% after Veritas said it is a company under duress, and that it does not believe the disclosed book equity and asset base.

        Veritas has accused DLF of showing inflated sales by at least Rs 11,236 cr through FY07-FY11. It adds that the company also showed inflated profits by at least Rs 7,233 cr through FY07-FY11 and inflated earnings via its dealings with DAL.

        Veritas’ reports also questioned the related party transactions to boost the value of DAL. “It was an unfair boost to DAL value, subverting the interest of minority,” it said.

        The organisation’s report has further said that DLF will seek assistance from banks to restructure loans.

        On the company’s stock price, Veritas has said that “in the best case scenario, DLF is worth Rs 100 per share."

        At 11:11 a.m., the DLF stock was at 219.50, down over 3% on the BSE.

        “A dream gone sour
        Zero execution capability
        A Fairy Tale Valuation”
        eritas has accused DLF of showing inflated sales by at least Rs 11,236 cr through FY07-FY11. It adds that the company also showed inflated profits by at least Rs 7,233 cr through FY07-FY11 and inflated earnings via its dealings with DAL.

        Veritas’ reports also questioned the related party transactions to boost the value of DAL. “It was an unfair boost to DAL value, subverting the interest of minority,” it said.

        The organisation’s report has further said that DLF will seek assistance from banks to restructure loans.

        On the company’s stock price, Veritas has said that “in the best case scenario, DLF is worth Rs 100 per share."

        At 11:11 a.m., the DLF stock was at 219.50, down over 3% on the BSE.

        “A dream gone sour
        Zero execution capability
        A Fairy Tale Valuation”

        Comment

        • #5

          #5

          Re : Real Estate India Bubble - Is not going to burst now!

          when the recession hit in US 2008/2009, the prices were stagnated for while in india. they lowered the prices somewhat just to keep the sale going for some time. and in 2010 they recovered the cost and since then they have been going up with no end in sight.

          research all the real estate news for the last 5 years in google and then do the math. at this time, if you have a salary of more then a lac/month, you can buy a decent home in US but not in india

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          • #6

            #6

            Re : Real Estate India Bubble - Is not going to burst now!

            But how can we or any govt policy can stop this? Everyone who already has home to live is making profits with buying and selling and so on but the actual end user is lost in all this. I think there should be policy that if somebody buys the home he/she should not be allowed to sell untill possesion is offered and 100% payemnt is done, otherwise this will continue that buy in soft lauch pay 20% of money and then sell it with big profit..


            Originally posted by WildHorse View Post
            when the recession hit in US 2008/2009, the prices were stagnated for while in india. they lowered the prices somewhat just to keep the sale going for some time. and in 2010 they recovered the cost and since then they have been going up with no end in sight.

            research all the real estate news for the last 5 years in google and then do the math. at this time, if you have a salary of more then a lac/month, you can buy a decent home in US but not in india

            Comment

            • #7

              #7

              Re : Real Estate India Bubble - Is not going to burst now!

              india real estate is just like a wall street where bidding happens. no regulation by govt. govt itself is corrupt. what you expect. that is why common man is suffering.

              Comment

              • #8

                #8

                Re : Real Estate India Bubble - Is not going to burst now!

                With so much deficit of quality housing and growing aspirations of younger generation don't expect any drastic price fall ..India needs RE regulator to instill confidence in investors and end-users...

                Bubble burst in RE is a distant dream as per me..

                Comment

                • #9

                  #9

                  Re : Real Estate India Bubble - Is not going to burst now!

                  Bubble burst is more of a wishful thinking

                  I also waited for many years for this bubble to burst.

                  One needs to understand that Indian RE works very differently.

                  10-20% correction is different thing. Forget about any bubble burst in India

                  Anytime is good time for buying RE for long term wealth creation.

                  Comment

                  • #10

                    #10

                    Re : Real Estate India Bubble - Is not going to burst now!

                    Originally posted by WildHorse View Post
                    india real estate is just like a wall street where bidding happens. no regulation by govt. govt itself is corrupt. what you expect. that is why common man is suffering.

                    Gurgaon Sector 8X and 9X projects are not for common man, only High middle class or white collar job people or NRI's can afford such projects.
                    Sector 8X and 9X with price band as high as 4000-5000/sqft. Nothing is available under 50 Lacs.what a common man will do with swimming pool, Tennis court, Club, Residential Apartments – Fully Fitted Out with ACs, Modular Kitchen, and Modular Cupboards etc.

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