Announcement

Collapse
No announcement yet.

Property Prices Down?

Collapse
X
Collapse

Property Prices Down?

Last updated: January 20 2017
26 | Posts
  • Time
  • Show
Clear All
new posts
  • #11

    #11

    Re : Property Prices Down?

    2K for construction cost is too much for apartments (when done at a scale) & also land cost is highly inflated.

    Comment

    • #12

      #12

      Re : Property Prices Down?

      FAR cost of land in Noida will be about 1500 per sft.

      Construction cost of typical group housing flats should be 1200-1500 sft max.

      Intrerest, marketing & admin cost 400 per sfft which builder recovers from inflating the super area.

      i don't see rates of RTM apartments of decent builder / quality going below 5200- 5500 psf. Not much inventory of quality RTM.

      others may go down to 4800 to 5200 level.

      bad quality, bad location, bad reputation and distress sales will be around 4500 sft.

      Comment

      • #13

        #13

        Re : Property Prices Down?

        Per sqft construction cost in 2010 was Rs. 1800/- psft in central noida (including land cost for 20+ stories) ... all the projects launched during that period were sold for Rs. 2500/- psft in 7X and 12X.....

        Construction cost hasn't gone up much since then (infact steel and cement cost has gone down which were at peak in 2010) .... and land cost does not effect the prices much given the fact that they make 500+ flats in 5 acres.

        To conclude, in no way psft cost of a flat in central noida should be more than Rs. 2500/- psft.... and even after that builder may end up with 40% profit margin on investment.......


        Rates like 4500/- ... 5000/-.... 5500/- etc. is purely artificially inflated CHUTIATIK rates........ and people with black money even pay these unrealistic rates ....

        after demonitisation things will hopefully change.

        Comment

        • #14

          #14

          Re : Property Prices Down?

          =MuditBansal;n2458749]Per sqft construction cost in 2010 was Rs. 1800/- psft in central noida (including land cost for 20+ stories) ... all the projects launched during that period were sold for Rs. 2500/- psft in 7X and 12X.....

          Construction cost hasn't gone up much since then (infact steel and cement cost has gone down which were at peak in 2010) .... and land cost does not effect the prices much given the fact that they make 500+ flats in 5 acres.

          To conclude, in no way psft cost of a flat in central noida should be more than Rs. 2500/- psft.... and even after that builder may end up with 40% profit margin on investment.......


          Rates like 4500/- ... 5000/-.... 5500/- etc. is purely artificially inflated CHUTIATIK rates........ and people with black money even pay these unrealistic rates ....

          after demonitisation things will hopefully change.[/QUOTE]

          Bansal sahab wait for few more 12-14 months, jab aapne 3-4 saal wait kiya ki prices jyada hain to saal 2 saal aur sahi, u get 2500/ sqft in central noida, chutiatic ko chhoro , buy one get one @2500 ke liye paisa joro.

          Comment

          • #15

            #15

            Re : Property Prices Down?

            See the news below... the days when properties were available for 2500 psf .. the land costs were in 10k-20k psm range ... Noida Ghaziabad Greater Noida is not as same as Delhi ... Circle Rates are more than market rates ... black components are minimal because in any case registrations were happening at circle rates .. In Delhi Black component is around 80% of the cost because circle rate is 20% of market rate...

            Now Noida authority is selling at 5 times the land rates in 2010 .. how can you expect property prices to be at 2500 psf.. ??? Avg Rate of 4500-5000 are now here to stay ...Correction in rates would be much more in Delhi.. not so much in Noida GZB ... how can prices fall from 7k to 2k psf ???

            News from paper copy pasted below ....
            "
            Bidding of these plots for commercial use by consortiums, investors and entrepreneurs will kick-start at a whopping Rs 1025 crore for the 64,500 meters plot.TNN | November 29, 2016, 12:00 IST

            NOIDA: With no takers for land in its area, Noida Authority has delayed the auction of commercial land for large and small category 27 plots till December. The Authority has also extended its group housing scheme of six plots in sectors 146 and 147 launched earlier this month.Bidding of these plots for commercial use by consortiums, investors and entrepreneurs will kick-start at a whopping Rs 1025 crore for the 64,500 meters plot.

            According to officials, a total of 12 large commercial plots ranging in size from smallest at 6046 square meters to largest at 64,500 square meters were announced for bidding last month. The reserve prices for the 12 plots had been fixed between Rs 1.59 lakh to Rs 1.66 lakh per square meters. The date for applying for this scheme has been extended till December 16, 2016. These plots are located in sectors 44, 62, 63, 94, 96, 121 and 124.

            Another 15 small commercial plots were to be auctioned at a reserve price of Rs 1.59 lakh per square meters to Rs 2.40 lakh per square meters. “This scheme with plots in sectors 1, 23, 26, 36, 46, 49, 58, 61, 62 and 92 with sizes ranging between 510 square meters to 3447 square meters has also been extended till December 12, 2016,” said P.K. Agarwal, Chief Executive Officer (CEO), Noida Authority.

            "
            Last edited November 30 2016, 11:29 PM.

            Comment

            • #16

              #16

              Re : Property Prices Down?

              Originally posted by ARJUNPUNJABI View Post
              Bansal sahab wait for few more 12-14 months, jab aapne 3-4 saal wait kiya ki prices jyada hain to saal 2 saal aur sahi, u get 2500/ sqft in central noida, chutiatic ko chhoro , buy one get one @2500 ke liye paisa joro.
              Are u serious or being sarcastic ?

              Comment

              • #17

                #17

                Re : Property Prices Down?

                Bhai Koi 50 lac ka maal 25 main bechega?

                jo intezaar main hain, they 5 Saal se, intezaar karte rahenge. ...?
                Just Max 5-10% correction for so so projects only.
                Last edited December 1 2016, 11:58 AM.

                Comment

                • #18

                  #18

                  Re : Property Prices Down?

                  Moderators and Veterans...........Please correct me if I am wrong regarding my analysis of both Primary and Secondary Sales........If I am not mistaken , the peak property prices were witnessed in the 1st half of 2013 . After that period there was a short period of decline in the prices to an extent of 5 to 10% that was followed by a period of stagnation that has continued till date , Over the last 2 years the prices have not come down , occasional buyer might have cracked a good deal but by and large the prices have remained the same . This can be considered as a decline by some especially those who argue that if the yearly appreciation in the value of the property does not match the yearly inflation ( about 6 to 8% ) , the investment in property is considered to be a losing proposition .
                  So going by that logic the prices have come down already by about 20 % ( cumulative ) in the last 3 years . Follow this up with the fact that the Real Estate Bill will take its effect from the first half of next year - the extra burden and responsibility on the builder will surely be passed on to the buyer ; and the simple logic that if someone is not in dire straits he will not sell his property at a price which is lower than the price at which he bought it in the first place.......... I infer that prices are unlikely to come down substantially . What we are likely to witness is a period where the number of sales and purchase of property will hit an all time low.

                  Comment

                  • #19

                    #19

                    Re : Property Prices Down?

                    If you are looking at RTM, then land cost is really less as most of them were started 5+ yrs back. Even if someone starting a new construction the land was acquired long time back. So, you can't apply the prevailing land rate for the old projects and say it can't be less than 4500 or 5000 etc. It is a flawed logic to argue against price drop.

                    Comment


                    • pghosh79
                      pghosh79 commented
                      Editing a comment
                      Well the Noida Authority Circle rate itself is 4500-5000 and people have to pay the registration fee based upon the Circle Rate. Also with Indexation Anything bought at 3000 5 years ago is now tax free if sold for 5500. So A person can sell at 5500 all white and pay no tax so why would someone sell for less than 5500? If genuine end user buyer they would be using a loan so they would want to have the highest recorded price to get the highest loan. They may even prefer the sale at 5500 and have the buyer pay them 500 in cash. This would make their cost of acquisation higher so when they eventually sell their capital gain will be very less
                  • #20

                    #20

                    Re : Property Prices Down?

                    Very Interesting article in today"s Times of India -

                    http://timesofindia.indiatimes.com/b...w/55767593.cms

                    Comment

                    Tags: None
                    Have any questions or thoughts about this?
                    Working...
                    X