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Property Prices Down?

Last updated: January 20 2017
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  • pkdch0101
    started a topic Property Prices Down?

    Property Prices Down?

    Hi everyone , I am an end user who has a property in Malviya Nagar , Delhi and looking to purchase another property in the near future for self use . I have been trying to get hold of a good deal in Delhi , Noida in the hope of getting a flat / Builder floor at a 20 to 30% lower price than what was before demonetisation. I can tell you with 100% accuracy that property prices in Malviya Nagar , Delhi have not come down even by 10%. In my opinion the property prices in premium locations in Delhi are unlikely to come down substantially ( definitely not 20 to 30%) as predicted by some newspapers and property experts. Kindly put in your thoughts.......

  • scient
    replied
    What I feel is that a lot of resale units will open up at competitive pricing due to fear of Benami coming up. Wait and watch game will start between builders and buyers and builders not having sound financial health will have a do or die situation and may be forced to cut down the pricing.

    How much will it go down can't say I am expecting 10-15% correction.

    Seniors please comment.

    Leave a comment:


  • pghosh79
    commented on 's reply
    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

  • ravidayal09
    replied
    but then builder will compromise somewhere in construction if they fall down price

    Leave a comment:


  • pkdch0101
    replied
    Hi disposition ,
    I agree with you to an extent that some of the surveys and articles that are published in the newspapers are sponsored and biased , therefore are in favour of those who pay a decent amount on a regular basis to these organisations. At the same time however I firmly believe that what we are likely to witness in the next 6 months will be a phase where buyers would look and insist on cracking real estate deals at atleast a 10 to 15 % lower price than the current rates ; sellers would wait and watch for the cash component to come back in the market along with a decrease in home loan rates (very likely to happen) so that they are able to sell their property at a minimal loss if any.............I only see a fall in the NUMBER of Real Estate Transactions with a minimal fall in property prices if any.

    Leave a comment:


  • skohli
    replied
    There will not be a major correction as expected. The construction cost is surely not gonna come down. The only thing is that the seller has to accept payment in white, so he has the stamp duty burden. Rest 5-10% is the max you should expect. But nothing abnormal.

    Leave a comment:


  • disposition
    replied
    pkdch0101 - assessment by who? CREDAI? What is it.. body of analysts? No - a body of REAL ESTATE DEVELOPERS!!

    Them saying rates will go up? What a surprise!

    They take every chance to say this for their own benefit. They opposed GST. They've been saying RE activity will go UP post demonitisation. Then said apartment rates (where they have max inventory) will go up. Then said primary rates will go up, resale will go down. They say whatever is in their interest only.

    Why would they not say this? CREDAI is run by heads of Prestige, ATS, etc and has 11,500 RE DEVELOPERS as its members. Its a body to push for their own interests. What credibility can they have, when the most dishonest participants of RE sector run this body. Some consider them a body of common thieves and dishonest crooks.

    Comments about Bengaluru in particular.. well, the guy saying this represents Prestige Group which has major projects in Bengaluru..

    These days one cannot trust news, need to always question why particular news is reported & how.
    TOI gets major advertisements from these very RE DEVELOPERS.

    Leave a comment:


  • pkdch0101
    replied
    Very Interesting article in today"s Times of India -

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

    Leave a comment:


  • rareal
    replied
    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.

    Leave a comment:


  • pkdch0101
    replied
    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.

    Leave a comment:

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